COL Financial said RL Commercial REIT has the potential to grow its portfolio by 69.5 percent from its current size as RLC has been accelerating development pipelines and looking for more land acquisitions to ensure a steady stream of projects.

READ: Robinsons REIT finalizes IPO price at P6.45/share

RLC has committed to infuse one or two assets per year into RL Commercial REIT, which has 14 PEZA-accredited properties which include Robinsons Summit Center in Makati City, Exxa-Zeta Towers in Quezon City, Robinsons Cybergate Center 2 & 3 in Mandaluyong City, and Robinsons Cyberscape Alpha and Robinsons Cyberscape Beta in Pasig City.

RLC has 10 more office buildings it may inject into RCR. These offices have a gross leasable area of around 188,000 square meters, equivalent to 44.1 percent of RCR. It has five office projects in the pipeline with a total GLA of 108,000 sqm.

This makes RCR one of the most-attractive high-yield REITs because of the rental income it receives from its office assets.

“We expect the cash flow of RCR to be stable going forward given the high average occupancy rate and lengthy lease contracts of tenants with built-in escalation rates of between 3% to 5% per annum, and strong tenant retention,” COL said.

RCR’s portfolio enjoyed a very high average occupancy rate of 89 percent, 98.2 percent and 98.8 percent for 2018, 2019, and 2020 respectively, said COL.

The company is seen to pay out P3.81 billion in dividends to investors based on a projected net income of P3.89 billion. Revneues and rental income are forecast to grow to
P4.85 billion and P3.97 billion, respectively.

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