RL Commercial REIT Inc. (RCR), the real estate investment trust of Robinsons Land Corp. (RLC), is planning two asset infusions this year, with malls likely to comprise the next batch of properties to be injected into its portfolio.
President and CEO Jericho Go said RCR was currently focused on malls because of the revenue upside from fixed rent and percentage-based rental income, as well as improved foot traffic.
“The fixed rent plus the percentage of sales and the improved foot traffic in our malls presents a very beautiful upside in terms of revenue,” Go told reporters following the company’s annual stockholders’ meeting earlier this month.
He said logistics and hotel assets remained part of the company’s pipeline, but malls were the priority for now.
At the same briefing, Kerwin Max Tan, chief financial officer, and risk and compliance officer at RCR, said the company and its fund manager had already identified a list of assets for infusion.
“We’ll probably do the infusions in tranches,” Tan said, adding that the transactions would depend on market conditions.
He said they would “try to do two tranches this year,” with an announcement likely in the next three months.
RCR’s portfolio mix is currently 53 percent malls and 47 percent office assets, with Tan saying that the ratio of malls to total portfolio could further eclipse that of offices because malls account for a bigger component of RLC’s revenues.
Go, meanwhile, said RCR continued to benefit from its sponsor’s steady support, citing a pipeline that includes more than 1.1 million square meters of mall assets and over 250,000 square meters of office assets, with a combined mall and office occupancy rate of 96 percent.
RCR shares on Friday closed up 2.31 percent at P7.08 each.
