The Gokongwei Group Real Estate Investment Trust (REIT), RL Commercial REIT Corp. (RCR), set the price of its initial public offering (IPO) at 6.45 P per share, potentially offering investors a 5.7% dividend yield for 2022. The IPO price has finalized the size of the equity transaction to 21.54 billion pesos, which can be increased to 23.51 billion pesos assuming the over-allotment option will be exercised. RCR notified the Philippine Stock Exchange (PSE) of the final IPO price of P 6.45 per share on Friday evening.
The price marks an 11.8% discount from the maximum offering price of 7.31 pesos per share stated in the first registration statement. At the maximum price, the dividend yield would have been less than 5%.
RCR, sponsored by Robinsons Land Corp., is the fourth REIT to debut on the local exchange after AREIT Inc. of Ayala Land, DDMP REIT of DoubleDragon Properties Corp. and Filinvest REIT.
Upon listing, RCR expects to be the largest REIT to date in terms of portfolio valuation and asset size. It will also have the longest land lease and the most geographically diverse office portfolio in the country.
The 5.7% dividend yield assumes that distributable income in 2022 will reach 3.72 billion pesos at an assumed dividend payout ratio of 97.65%. This should generate a dividend of 36.55 centavos per share. The RCR offering period will run from August 25 to September 3, with the target listing on the PSE Main Board on September 14 under the symbol “RCR”.
The offering will include up to 3.34 billion common shares and an over-allotment option of up to 305 million common shares.
RCR’s portfolio consists of 14 commercial real estate assets located in the central business districts of Metro Manila and in the key cities of Naga, Tarlac, Cebu and Davao.
Its current portfolio has a total gross leasable area of 425,315 square meters, with a committed occupancy rate of 99%.
Based on the valuation of real estate consultancy Santos Knight Frank, the value of assets stood at 73.9 billion pesos at the end of June.
—Doris Dumlao-Abadilla INQ
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