RL Commercial REIT seen as bellwether for domestic market

MANILA, Philippines – RL Commercial REIT Inc. (RCR) is increasingly cementing its position as a benchmark stock for the Philippine real estate investment trust (REIT) market, backed by a growing retail portfolio and strong occupancy levels, according to a report by First Metro Securities and DBS Bank.

The brokerages described RCR as one of the country’s most investable listed REITs, saying its growing market relevance has elevated the company beyond its traditional role as an office-focused landlord.

READ: Retail resurgence prompts RCR expansion

“Benchmark relevance is improving,” the report said, pointing to stronger liquidity, broader index inclusion and a larger public float that have expanded RCR’s investor base.

The company was added to the FTSE Russell indices in 2024, the MSCI Small Cap Index in 2025 and the Philippine Stock Exchange Index earlier this year.

First Metro and DBS said RCR’s portfolio has become more balanced following recent asset infusions, with retail properties now accounting for 54 percent of its portfolio and offices making up the remaining 46 percent.

The report noted that mall assets bring more favorable lease structures, including variable rent components that can support earnings growth.

Combined with high occupancy, strong tenant retention and exposure to multinational firms, business process outsourcing operators and global capability centers, these assets provide resilience amid a prolonged high interest rate environment.

The report also highlighted RCR’s sizeable growth runway through future asset injections from sponsor Robinsons Land Corp. (RLC).

The sponsor’s remaining pipeline includes about 1.7 million square meters of mall gross leasable area, 897,000 sq m of office space, more than 4,000 hotel room keys and 328,000 sq m of logistics facilities.

The report said management appears focused on accelerating RCR’s expansion as it seeks to develop the company into a bellwether Philippine REIT.

Future asset infusions are also expected to lean more toward retail properties, potentially enhancing lease economics and supporting long-term distribution growth.

The report comes as RCR continues to strengthen its market position.

Its market capitalization has more than doubled since its 2021 listing, while occupancy remains at around 96 percent. The company also recorded a 100-percent tenant renewal rate in 2025, underscoring the stability of its income-generating portfolio.

First Metro and DBS said RCR’s combination of scale, sponsor support and portfolio diversification places it in a strong position to benefit from future growth in the country’s REIT industry. INQ