{"id":333216,"date":"2025-07-17T01:27:12","date_gmt":"2025-07-16T17:27:12","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333216"},"modified":"2025-07-17T01:27:14","modified_gmt":"2025-07-16T17:27:14","slug":"stock-in-focus-rl-commercial-reit-rcr-17-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-17-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 17 July 2025 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are raising our target price (TP) for RL Commercial REIT, Inc. (RCR) to Php8.20 (from Php7.50) as we begin to recognize the incremental profits and dividends from the upcoming asset infusion following the Board approval. We retain our BUY rating.<\/p>\n\n\n\n

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

Our revised TP, based on the multistage dividend discount model (DDM) method of valuation, is rooted in our assumption that the property-for-share swap transaction that involves nine (9) malls with a combined gross leasable area (GLA) of 324,108 sqm will be completed by early 4Q 2025. The resulting 39% boost in portfolio should increase the quarter-on-quarter rental income accordingly if the rate per sqm and occupancy remain steady. The potential total return, including dividend yield, is still compelling at 16.2%. <\/p>\n\n\n\n

RCR\u2019s core net income (CNI) surged by 47% year-on-year (y\/y) to Php1.69 billion, generally in line with expectations. Revenues grew by 59% y\/y to Php2.24 billion, driven by the 13 assets acquired in 2H 2024 and a sustained occupancy rate of 96%. We forecast 2025 CNI to rise by 21% y\/y to Php7.4 billion, reflecting the full-year impact of the 347,329 sqm asset infusion last year and the forthcoming asset infusion of 324,108 sqm by 4Q 2025. There may be a temporary 12.1% y\/y decline in EPS this 2025 simply because of the increase in outstanding shares arising from the property-for-share swap transactions.<\/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>