Three-year growth plan: Gokongwei REIT on the lookout for grade A commercial assets

RL Commercial REIT (RCR), the real estate investment trust of the bilyonaryo Gokongwei family, is looking to pursue growth opportunities organically and inorganically as part of its investment strategy for the next three years as it aims to improve shareholder return.

RCR bared plans to invest on a long-term basis in a diversified portfolio of incoming-producing commercial real estate assets, which are leased primarily for office purposes and strategically located in central business districts (CBD) and key cities and urban areas across the country.

To achieve organic growth, the company is actively monitoring opportunities for asset enhancement initiatives in its portfolio, with the objective of improving the quality of properties, achieve higher rental rates, and deliver improved return to shareholders.

Inorganic growth opportunities, meanwhile, will be pursued either through improvement of existing assets to command higher rental rates, or through dividend yield accretive acquisitions of high quality commercial properties.

“RCR will consider asset acquisitions via different financing methods as the case may be, including equity and debt capital raising transactions, bank loans, tax-free exchange, etc., depending on what is in the company’s best interests,” said fund manager RL Fund Management Inc.

The company’s focus is primarily on Grade A commercial assets located in prime CBD locations in Metro Manila as well as major regional commercial hubs.

As part of its investment objectives, RCR is targeting a low annual double digit total shareholder return.

“This can be attained through continuous property acquisitions which are dividend yield accretive, along with contracted escalation rates and stable dividend yield,” RL Fund Management said.

As of end-November, RCR’s portfolio consists of 16 commercial properties.

https://bilyonaryo.com/2022/12/20/three-year-growth-plan-gokongwei-reit-on-the-lookout-for-grade-a-commercial-assets/property/