MANILA, Philippines — This real estate investment trust (REIT) is seen to be well on its way to become the largest in its asset class in the country—and break into the Philippine Stock Exchange index (PSEi) as early as August this year, but more plausible by February 2026.
We’re talking about Gokongwei-led RL Commercial REIT (RCR), which is just one deal away from joining the basket of the country’s largest, most valued and most liquid companies, according to a joint research note by First Metro Securities and DBS.
“It currently meets two of the three PSEi eligibility requirements: liquidity and free float. Based on estimates post-asset injection, RCR needs to maintain an average price of around P6.95 in second half of 2025 to be added to the PSEi by Feb. 2026,” said the First Metro Sec-DBS research note dated June 20.
READ: Bullish on RCR
The equity houses raised their RCR target price to P8 from P6.80 per share, implying a dividend yield of 6 percent and 6.2 percent based on estimated payout for 2025 and 2026, respectively.
As of Wednesday, RCR closed at P7.36 per share, giving it a market capitalization of P116.3 billion, or not too shabby relative to the P131-billion valuation of pioneer AREIT, so far the only REIT to make the index cut.
For the size requirement, the third in the PSEi eligibility test, the paper noted that RCR would need at least P30 billion of asset injection to push its market cap above the 25th rank (from 29th at present).
“We could see RCR’s inclusion in the next PSEi rebalancing exercise in August 2025, but odds are higher in February 2026,” the note said.
The P8 target price of First Metro Sec and DBS assumes a valuation re-rating from its latest P30.7-billion asset injection.
“After the infusion, RCR will benefit from a sector-leading combination of large market capitalization, high-quality assets and index inclusion premium,” the note said.
READ: Robinsons Land pumps up REIT arm with 9 more malls
The research projected that RCR would eventually bulk up to be the country’s largest REIT, with retail assets comprising 54 percent of its more than 1.1 million square meters of gross leasable area or P155 billion in assets under management across 21 malls and 17 office assets.
These are alongside “favorable lease” agreements—with variable leasing structures providing potential growth lever—unlike other REITs where properties are leased to sponsors under a fixed lease agreement, the research pointed out.
But where could First Metro Sec and DBS be wrong? If asset injection plans do not materialize, risk-free rates turn out higher and key operational metrics deteriorate are cited as some of the key risk factors. —Doris Dumlao-Abadilla
PNB collabs with Japanese e-wallet
Remittances continue to be a major need—and economic driver.
Philippine National Bank (PNB), which has one of the most extensive overseas network among local banks, recently moved to boost this growth driver in partnership with Japan’s Digital Wallet Corp.
As its name suggests, Digital Wallet operates an online financial platform, Smiles. But it’s not just any other mobile app: Smiles specializes in mobile remittance.
PNB on July 3 inked a partnership deal with Digital Wallet to enhance its international remittance capabilities while providing improved service to Filipinos abroad.
“With this collaboration, our kababayans in Japan will have greater access to faster, more affordable and more convenient ways to send money home—directly from their mobile phones and backed by the trust and security of PNB,” PNB president and CEO Edwin Bautista said on Wednesday.
Under their partnership, PNB will combine its “established global banking network” with Digital Wallet’s “innovative digital remittance technology.”
Great news for our friends and family in Japan! —MEG J. ADONIS