{"id":333035,"date":"2025-06-25T23:02:51","date_gmt":"2025-06-25T15:02:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333035"},"modified":"2025-06-25T23:02:54","modified_gmt":"2025-06-25T15:02:54","slug":"stock-in-focus-rl-commercial-reit-rcr-25-june-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-25-june-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 25 June 2025 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>25 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 7.94<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, we are maintaining our BUY rating on RCR with a Target Price of P7.94\/share. Despite rising concerns regarding US tariff implementations, estimated increased revenue generation from further asset infusions, continuously solid occupancy rates, and gradually improving office market momentum may be enough to offset the impact on the property sector.<\/p>\n\n\n\n

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

Last 1Q 2025, RL Commercial REIT, Inc. (RCR) recorded robust double-digit revenue growth, climbing +48% y\/y to P8.12 billion. This strong performance was fueled by increased rental income and additional earnings from the infusion of 13 properties last 3Q 2024. As a result, the firm\u2019s NI rose significantly by +48% year-on-year (y\/y) to P16.99 billion. <\/p>\n\n\n\n

The recent asset infusion significantly boosted RCR’s GLA, which jumped an impressive 72% from 480,000 sqm to 828,000 sqm. This expansion now includes 539,000 sqm of office space, 289,000 sqm of mall space, and a total of 29 assets, comprising 17 office properties and 12 malls. The firm also features sustained occupancy rates at 96%.<\/p>\n\n\n\n

As of Q1 2025, RLC\u2019s portfolio includes over 1.3mn sqm of mall GLA, more than 250,000 sqm of office GLA, nearly 300,000 sqm of logistics GLA, and approximately 4,000 hotel rooms, which may eventually be integrated into RCR\u2019s holdings. Despite the initial rockiness seen in the office segment, a gradual recovery was seen with new pre-leasing activities and slower vacancy rates. Significant pre-leasing deals have been recorded, with these leased spaces set to make a positive impact on net absorption in 2025. Additionally, with the BSP\u2019s recent rate cut of 25 basis points to 5.25%, the reduced interest rates may spark heightened interest in real estate, potentially driving greater demand for RCR\u2019s properties.<\/p>\n\n\n\n

Looking ahead, RLC intends to inject nine of its malls into RCR through a P30.67 billion property-for-share swap. In exchange, RCR will issue 3.83 billion primary common shares at P8 each. The malls, which collectively span 324,107.75 sqm of GLA, include Robinsons Dasmari\u00f1as, Robinsons Starmills, Robinsons General Trias, Robinsons Cybergate Cebu, Robinsons Tacloban, Robinsons Malolos, Robinsons Santiago, Robinsons Magnolia, and Robinsons Tuguegarao.<\/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>