{"id":327457,"date":"2024-04-11T00:40:19","date_gmt":"2024-04-10T16:40:19","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327457"},"modified":"2024-04-11T01:04:43","modified_gmt":"2024-04-10T17:04:43","slug":"stock-in-focus-rl-commercial-reit-rcr-11-apr-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-11-apr-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 11 Apr 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RCR<\/td><\/tr>
Company Name<\/strong><\/td>RL Commercial REIT Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>11 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 6.01<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

We see that developments below will benefit the company greatly moving forward, its current yield of 7.8% given current price of P5.01 alongside a 20% upside from our Target Price of P6.01 leads us to reiterate our BUY rating for RCR.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Opinion<\/h2>\n\n\n\n

RLC completed block placement of its shares in RCR<\/h3>\n\n\n\n

This totaled 1,725,995,000 shares at a transaction price of P4.92, raising P8.5-Billion for RLC and effectively increasing RCR\u2019s public float to 49.95%. The increase in public float would give RCR room to issue more shares for a potential acquisition of accretive assets from RLC, aligned with the RLC\u2019s goal to infuse P25-Billion worth of assets this year which translates to a 60% increase in GLA.<\/p>\n\n\n\n

More than offices<\/h3>\n\n\n\n

We note that previously, RCR was primarily geared towards acquisitions of office assets. Upon reading RLC\u2019s press release, they mentioned the intention to infuse other asset classes as well, which includes malls, hotels, and warehouses. The infusion of these asset classes would be a positive for RCR given the fact that the primary earning drivers for property companies in 2023 were malls as consumer demand begins to pick up alongside hotels on the back of traveler resurgence. Moving forward, as these segments continue to recover, it would shed a rosier outlook for RCR\u2019s earnings performance which would translate to better dividends for shareholders.<\/p>\n\n\n\n

On liquidity<\/h3>\n\n\n\n

Given the increase in RCR\u2019s public float, we expect some improvement in liquidity as more shares will be available to be traded on the market. Note that we also considered liquidity for our REIT picks. These progressions enable us to recommend RCR as a REIT pick more freely.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>