{"id":329651,"date":"2024-09-26T00:23:48","date_gmt":"2024-09-25T16:23:48","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329651"},"modified":"2024-09-26T00:23:50","modified_gmt":"2024-09-25T16:23:50","slug":"stock-in-focus-robinsons-land-corp-rlc-26-sept-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-land-corp-rlc-26-sept-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Robinsons Land Corp. (RLC) – 26 Sept 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RLC<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Land Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>26 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 22.61<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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While RLC continues to be heavily geared towards their mall and office segments, we see residential, especially those located in mixed-use master-planned townships, as the next frontier of growth for property development companies as the BSP\u2019s rate cut cycle progresses. We therefore reiterate our BUY rating for RLC with a Target Price of P22.61.<\/p>\n\n\n\n

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

Money-go-round<\/strong><\/p>\n\n\n\n

Recall that RLC sold 1.72-Billion RL Commercial REIT Inc. (RCR) shares in April 2024 at P4.92 per share, translating to net proceeds of P8.35-Billion for RLC. The company released a reinvestment plan for these proceeds a week after the transaction, which RLC amended yesterday. The amendments included reducing projected disbursements for RLX projects in Taytay, San Fernando, Calamba, and Montclair, as well as for the township developments of Bridgetowne, Sierra Valley, and Montclair. The funds will instead be used to purchase additional land for RLC\u2019s integrated development in Taguig City.<\/p>\n\n\n\n

Locking in prices in a prime location<\/strong><\/p>\n\n\n\n

RLC will be allocating an additional P3.5-Billion this quarter to acquire additional land for its Bonifacio Capital District (BCD) in Taguig, RLC\u2019s joint venture with the Bases Conversion and Development Authority (BCDA). The development boasts of a prime location near the planned Lawton station of the ongoing Metro Manila Subway Project, which would connect Northern and Southern NCR. <\/p>\n\n\n\n

The project is also right beside the New Senate Building and adjacent to the planned Bonifacio South Main Boulevard, which will act as an alternate route into BGC. To illustrate the effect of proximity to public transport and connectivity, we note that from 1995 to 2021, prices per sqm of resi lots within 1km of the MRT-3 rose by a CAGR of 4.6% while resi lots more than 2kms away also rose at a CAGR of 3.6% during the same period. Metro Manila Subway\u2019s start of operations will likely boost valuations in BCD, which could be the rationale for RLC reallocating funds to secure land assets in the area as soon as possible.<\/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>