RL Commercial REIT, Inc. (RCR), the real estate investment trust (REIT) arm of Robinsons Land Corp. (RLC), is poised to be included in the Financial Times Stock Exchange (FTSE) Global All Cap Index, which is expected to enhance the company’s visibility among international investors and drive higher trading activity.

RCR secured its inclusion after meeting FTSE Russell’s stringent eligibility criteria, which assess market capitalization, liquidity, and free float.

The company’s market capitalization stands at PHP97.4 billion, with 15.71 billion issued shares at PHP6.20 share price as of Feb. 28, 2025. Notably, 35.93% of its shares are classified as free float, ensuring strong market liquidity. RCR also maintains a 40% foreign ownership limit.

The company’s growth stems from its expanding portfolio of income-generating assets. As of December 2024, RCR owns 29 commercial properties spanning 828,000 square meters (sq.m.) of gross leasable area (GLA). These include 17 office buildings covering 539,000 sq.m. and 12 malls totaling 289,000 sq.m., strategically located in 18 cities across the Philippines.

Recently, RCR acquired 13 commercial assets valued at PHP33.92 billion through a property-for-share swap. This deal added 347,000 sq.m. of GLA to its portfolio, with RLC subscribing to 4.99 billion RCR primary common shares at PHP6.80 per share. This is the largest single infusion by a Philippine REIT company to date.

Furthermore, RCR reported a 38% increase in net income in 2024, reaching PHP6.13 billion (excluding the effect of fair market value change in investment properties).

The Board also approved a regular cash dividend of PHP0.1010 per outstanding common share for the fourth quarter of 2024 to share its commitment to delivering robust returns to shareholders. For the full year, RCR declared total cash dividends of PHP5.71 billion, surpassing 90% of its unaudited distributable income. The total dividend per share for 2024 stood at PHP0.4261, including a special cash dividend of PHP0.0260.

Under its dividend policy, RCR distributes at least 90% of its distributable income to shareholders, complying with the REIT Law.

Meanwhile, the REIT’s stock performance has shown a generally stable trend, with its shares closing at PHP6.20 per share on Friday.

Interest of global investors

The FTSE Global All Cap Index represents the performance of large-, mid-, and small-cap stocks globally. The index covers Developed and Emerging Markets and is suitable as the basis for investment products, such as funds, derivatives and exchange-traded funds.

FTSE Russell, a subsidiary of the London Stock Exchange Group, constructs and maintains these indices by employing a rigorous methodology to ensure accuracy and representativeness.

Inclusion in a FTSE index puts RCR on the radar of institutional investors, fund managers, and market participants who use these indices for investment decisions. Many institutional investors, particularly those managing passive funds (like index funds and ETFs), are mandated to track the performance of specific indices. When a company is added to an index, these funds must buy shares of that company to accurately mirror the index’s composition. Hence, the surge in demand puts upward pressure on the stock price.

Greater visibility often leads to higher trading volumes, making it easier for investors to buy and sell shares.

As more investors trade a company’s shares due to its inclusion in an index, the stock becomes more liquid. Higher liquidity generally makes it easier for investors to buy and sell shares without causing significant price fluctuations, which can make the stock more attractive to a wider range of investors.

Index inclusion is often interpreted as a positive signal about a company’s financial health, growth prospects, and corporate governance. It suggests that the company has met certain objective criteria for size, liquidity, and quality, which can boost investor confidence and lead to a higher valuation.

Most importantly, a track record of consistent financial performance and growth can also influence FTSE Russell’s decision to include a company in its indices. RCR’s strong performance in the Philippine real estate market likely strengthened its case for inclusion.

Largest REIT listing in PHL

RCR traces its origins to its registration with the Securities and Exchange Commission (SEC) as Robinsons Realty and Management Corp. The company initially focused on acquiring, developing, and managing real estate assets.

In 2021, it rebranded as RL Commercial REIT, Inc. and transitioned into a REIT, aligning with the growing demand for real estate-backed investment vehicles in the Philippine capital market.

By far, it is the single biggest REIT listing by a Philippine REIT company. It raised a total of PHP23.5-billion cash during its initial public offering (IPO) from both local and foreign investors.

RCR’s investment strategy centers on long-term ownership of a diversified portfolio of income-generating real estate assets. These properties, primarily serving office tenants, are located in major business districts and key urban centers nationwide. This positioning has provided RCR with a steady income stream and a strong value proposition for investors.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.