• RCR’s portfolio is set to reach nearly three times its IPO size after five asset infusions since listing.
• The six malls come with a blended occupancy rate of 96 percent and deepen retail’s contribution to earnings.
• Robinsons Land still has more than 1.7 million square meters of assets available for future REIT infusions.
The Gokongwei family-led RL Commercial REIT (RCR) is set to triple in size from its initial public offering (IPO) portfolio after agreeing to acquire six Robinsons malls in a P10.6 billion asset infusion, extending one of the Philippine REIT sector’s most aggressive expansion runs.
The transaction will increase the real estate investment trust’s (REIT) gross leasable area to 1.31 million square meters from 1.15 million square meters when it listed in September.
Premium valuation
RCR will acquire Robinsons Dumaguete, Robinsons Tagaytay, Robinsons Iligan, Robinsons Galleria South, Robinsons La Union and Robinsons Naga through a property-for-share swap with sponsor Robinsons Land.
In exchange, RCR will issue about 1.29 billion new shares at P8.25 each, valuing the transaction at approximately P10.6 billion.
This is an 18 percent premium to the stock’s 30-day volume-weighted average price.
Bigger retail footprint
The six malls contribute more than 160,000 square meters of leasable space and carry a blended occupancy rate of 96 percent.
The acquisition will expand RCR’s portfolio to 44 assets from 38 while increasing the share of malls to about 61 percent of total assets, creating a more balanced earnings base between its retail and office properties.
Growth pipeline intact
The deal will expand RCR’s geographical reach to 30 locations nationwide from 25 locations currently, reinforcing its position as the country’s most geographically diversified REIT.
Even after the acquisition, Robinsons Land retains a pipeline of more than 1.7 million square meters of malls, offices and logistics assets, along with roughly 4,000 hotel room keys that could support future infusions.
Based on RCR’s current share price, the REIT’s market capitalization is projected to increase to about P146.9 billion following the transaction, more than double its value at the time of listing.
—Edited by Miguel R. Camus
