Investors warm up to Robinsons Land REIT

RL Commercial REIT, Inc. ended up as one of the most actively traded stocks in the Philippine Stock Exchange (PSE) last week after its market debut on Tuesday.

The real estate investment trust’s (REIT) performance saw a total of P945.16-million worth of 146.31 million shares exchanged hands on the trading floor from Sept. 14 to 17, data from the PSE showed, making it the 12th most traded issue during the week.

RL Commercial shares closed with P6.45 apiece on Friday, unchanged from its initial public offering (IPO) price.

“RL Commercial is among the active stocks after it got listed last Sept. 14 wherein it is the biggest capitalization among REIT companies,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a mobile phone message on Friday.

“As it is among the stable occupancy among REIT listed at 98%, it is expected to have a yield of 5.7% among its investors but expected to move up in revenue as it eases on reopening the economy,” he added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a phone message that investors showed quite an appetite for RL Commercial given the attractive cash dividend projections for the next few years.

“In addition, some key views that drove the positive sentiment include, but not limited to the following: full occupancy as of end-Aug. 2021, all buildings are PEZA (Philippine Economic Zone Authority)-accredited and the potential for dividend-accretive acquisitions. Revenue expected to be stable and hoping it can surpass forecasts given tenant stability,” added Mr. Limlingan.

RL Commercial was among the most traded stocks at a value of P499.70 million on Tuesday with 77.28 million shares traded during its maiden performance in public.

Its P64.2-billion market capitalization is said to be the biggest among REITs locally. It is the fourth and the “largest” REIT listing at the local bourse, breaking records upon listing.

Robinsons Land Corp., its parent firm, will use the P23.5-billion REIT listing proceeds to build more projects.

Other REITs in the country are AREIT, Inc., DDMP REIT, Inc., and Filinvest REIT Corp.

RL Commercial has branded itself as the most geographically diverse REIT, with over 94% of its initial portfolio spread in the business districts of Makati, Bonifacio Global City, Ortigas as well as in Mandaluyong, Quezon City, Metro Cebu, Metro Davao, Naga, and Tarlac.

The initial portfolio of RL Commercial includes 14 PEZA-accredited assets, spanning over 400,000 square meters of gross leasable area across Metro Manila business districts and commercial hubs beyond the region.

“With the recent result of US inflation rate on the downtrend, it lends credence to the statement of United States (US) Federal Reserve Chief Jerome H. Powell that inflation is transitory wherein supply will balance with demand as the situation normalizes thus there is no need to taper on stimulus,” added Diversified Securities’ Mr. Pangan.

Reuters reported that the US Labor Department on Tuesday the overall consumer price index rose 0.3% in August, slowing from the 0.5% in July. This was also softer than the 0.4% estimate by economists in a Reuters poll.

“With this position, we may continue to see the prevailing low interest rates in the market which is favorable for REIT companies such as RL Commercial with a projected yield of 5.7% but expected to move up as economy reopens on increase occupancy rate aside from injection of additional assets by next year,” said Mr. Pangan. 

He placed the stock’s immediate support at P6.44 per share and immediate resistance at P6.55 per share.

“Price movements will be sideways until release of earnings and/or dividends. Price will adjust whether they or above, within or below expectations,” said Mr. Limlingan.

He pegged the stock support at P6.42 and resistance at P6.50 per share. — Lourdes O. Pilar