{"id":328844,"date":"2024-08-08T00:50:51","date_gmt":"2024-08-07T16:50:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328844"},"modified":"2024-08-08T00:50:53","modified_gmt":"2024-08-07T16:50:53","slug":"stock-in-focus-rl-commercial-reit-rcr-8-aug-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-8-aug-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 8 Aug 2024 by Regina Capital Development Corp."},"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>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

We are maintaining our BUY rating on RCR with a Target Price of P8.30 apiece on the back of better dividend yield forecast and improved 2024 and 2025 rental income due to the recent asset infusion.<\/p>\n\n\n\n

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

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

In the 1st quarter (1Q) of 2024, RL Commercial REIT, Inc. (RCR) posted a modest +4% year-on-year (y\/y) increase in Net Income (NI), reaching P1.1 billion, despite a slight dip in its rental income. <\/p>\n\n\n\n

Revenues fell by -1.79% y\/y to P1. billion, yet the company still managed to nudge its operating margins up to 80.5% from 79.7% last year. This reflects RCR’s ability to maintain strong profitability even when rental income softens.<\/p>\n\n\n\n

Recently, RLC infused P33.9 billion in RCR via an asset-for-share swap, adding 13 prime commercial properties to the portfolio. This move increased RCR’s total GLA by 347,329 sqm, bringing it to 827,808 sqm. The assets include 11 malls totaling 278,526 sqm and two office properties contributing 68,803 sqm.<\/p>\n\n\n\n

The asset infusion showcases RCR’s intention to diversifying its portfolio, particularly into the resilient mall sector, which continues to thrive on robust consumer spending. While the office market may be facing some uncertainty, RCR is ensuring it doesn’t put all its eggs in one basket, positioning itself for sustained growth and stability.<\/p>\n\n\n\n

The newly added assets are anticipated to boost RCR’s disposable income, potentially leading to a larger cash dividend for the 3rd quarter. Our estimates suggest that RCR\u2019s cash dividends for 2024 could grow by 35% compared to 2023.<\/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>