{"id":327570,"date":"2024-04-17T22:18:42","date_gmt":"2024-04-17T14:18:42","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327570"},"modified":"2024-04-17T22:41:06","modified_gmt":"2024-04-17T14:41:06","slug":"stock-in-focus-rl-commercial-reit-rcr-17-apr-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-17-apr-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 17 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>17 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
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RCR\u2019s historically consistent dividend declaration record, coupled with RLC\u2019s planned infusion of mall and hotels assets alongside GSIS\u2019 vote of confidence in the company, we reiterate our BUY rating for RCR with a Target Price of P6.01.<\/p>\n\n\n\n

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

Sign of confidence<\/h3>\n\n\n\n

A recent filing by RCR dated April 16 reported that GSIS currently owns 877.43-Million shares of RCR, 790.2-Million of which were acquired in the past 60 days. The total number of shares acquired is equivalent to 8.18% of O\/S. We believe that the acquisition signals that GSIS is already beginning to position for lower risk-free returns moving forward, which could be viewed as a positive note overall for both RCR in particular, and for REITs in general.<\/p>\n\n\n\n

Focus on overall growth<\/h3>\n\n\n\n

RCR\u2019s latest cash dividend declaration of P0.098 last February translates to a decent annualized yield of 7.9% based on LTP of P4.95. Aside from the consistent dividend growth, we like RCR for the following reasons:<\/p>\n\n\n\n

(1) occupancy rate of 94% remains slightly higher than the industry average of 93%, (2) REIT sponsor RLC\u2019s plan to infuse P25-Billion worth of assets for the year, which would again be dividend accretive for RCR shareholders; and (3) RCR\u2019s plan to shift their focus towards the segments that outperformed in 2023 which are the malls and resorts vs their previous gearing towards offices. <\/p>\n\n\n\n

This puts RCR in a good position for the long-term given the current cloudy atmosphere surrounding the office segment.<\/p>\n\n\n\n

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