RL Commercial REIT Inc. (RCR), the publicly listed real estate investment trust backed by property giant Robinsons Land Corp. (RLC), is setting its sights on tripling its asset base over the next three years as part of an aggressive growth plan backed by its sponsor.
Kerwin Max S. Tan, RCR treasurer, said that only about one-third of RLC’s assets have so far been infused into the REIT. “So potentially, RCR can grow two-thirds more from the sponsor’s remaining assets. It’s basically three times more from the current size, potentially,” Tan said, speaking on the sidelines of the company’s investor briefing.
RCR’s current market capitalization stands at over ₱100 billion, making it one of the Philippines’ largest REITs. The envisioned growth is being guided by RL Fund Management Inc., the fund manager overseeing RCR’s expansion strategy. “They have a three-year target to basically make RCR as big as possible,” Tan added.
The strategy includes the planned infusion of more shopping malls and, eventually, hotels—although Tan emphasized that hotel inclusion will depend on asset quality, particularly occupancy metrics. RLC currently owns 1.4 million square meters of leasable mall space and another 250,000 square meters in office space that has yet to be transferred to RCR.
“There is still a good amount of space on the mall side that can be infused,” said Jericho Go, RCR president. Go also revealed that RLC is planning to expand its mall and office portfolios by 50 percent by 2030, marking its 50th year of operations. “RLC is not just sitting idly by. It has made a commitment to grow,” he said.
RCR’s existing portfolio comprises 17 office buildings and 12 malls across 18 key locations nationwide, with a combined gross leasable area of 827,807 square meters. Office assets make up 65 percent of this portfolio, while malls account for the remainder. The company boasts a robust 96 percent blended occupancy rate and a weighted average lease expiry of 3.37 years.
The tenant base is dominated by the business process outsourcing (BPO) sector, which accounts for 60 percent of its occupancy, followed by retail (29 percent), traditional office tenants (6 percent), and other categories including food and entertainment (5 percent).
“BPOs remain the main demand driver for office spaces in the Philippines, and RCR continues to support the industry’s expansion,” Go said, citing strong locational and leasing fundamentals that continue to attract major outsourcing firms.
With a growing portfolio, strong sponsor backing, and a clear expansion roadmap, RCR is positioning itself as a leading commercial REIT not just in the Philippines but potentially in the region, analysts say.
