{"id":330877,"date":"2024-12-13T00:38:21","date_gmt":"2024-12-12T16:38:21","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330877"},"modified":"2024-12-13T00:38:25","modified_gmt":"2024-12-12T16:38:25","slug":"stock-in-focus-rl-commercial-reit-rcr-12-dec-2024-by-ap-securities-2","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-12-dec-2024-by-ap-securities-2\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 13 Dec 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>13 Dec 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 7.01<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Our current market conditions call for a more conservative approach when it comes to investing, and we have continually reiterated how REITs are the sweet spot for investors that are looking to invest in the stock market but are not comfortable with the volatility that is typically associated with it. On this note, RCR remains as one of our top REIT pick due to its hefty dividend yield and substantial potential upside of 18.8% to our Target Price of P7.01.<\/p>\n\n\n\n

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

Room for expansion<\/strong><\/p>\n\n\n\n

RCR recently disclosed that it is currently focusing on central business districts (CBDs), emerging business districts, and key locations nationwide as possible areas for the expansion of its property portfolio. The main rationale behind this strategy is the high-growth potential attached to these areas alongside its proximity to different means of public transportations and major roads which greatly increases its appeal
to potential tenants.<\/p>\n\n\n\n

A premium choice for conservative investors<\/strong><\/p>\n\n\n\n

We note that despite RCR\u2019s 20.6% run-up on a YTD basis, yields remain attractive at 6.84%. The recent infusion of 13 commercial properties which resulted in a staggering 72% expansion of their property portfolio has already translated to dividends for shareholders as the company declared special dividends of P0.026\/sh on top of the regular P0.1009\/sh, which essentially translates to a substantial 27.9% QoQ dividend per share (DPS) growth. <\/p>\n\n\n\n

We expect this to expand further as RCR continues to infuse more properties into its portfolio. We also note that RCR\u2019s occupancy rate of 96% is 4 ppts higher than comps average of 92%, which displays the company\u2019s ability to select stable tenants.<\/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>