BIZ BUZZ: The next REIT to join PSEi
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 a strong contender to 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.
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.
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.
