RLC secures P6.2B from selling shares in REIT

Robinsons Land Corp. (RLC) has raised P6.2 billion from selling shares in its real estate investment trust (REIT) amid plans to take on more projects.

In a stock exchange filing on Friday, the Gokongwei-led company said its board of directors had approved the block sale of 1.04 billion of its common shares in RL Commercial REIT Inc. (RCR) for P5.95 each.

This is a 5.71-percent discount from RCR’s closing price of P6.31 per share on Thursday.

The deal increased RCR’s public ownership level from 35.93 percent to 42.57 percent, or above the 33.33-percent minimum for listed REITs.

“The transaction was anchored by high-quality, long-only institutional investors,” RLC said in its disclosure, adding that proceeds from the block sale would be settled on April 8.

A block sale is usually done outside market hours to avoid disrupting the company’s share price. This is likewise meant to help raise capital quickly.

RLC earlier said it would spend around P22 billion this year to support the expansion of its investment properties.

The amount would likewise go to the company’s capital expenditures for subdivision land, condominiums, residential units and other real estate properties for sale.

Property-for-share deal

Last year, RLC injected P33.9 billion worth of assets into RCR via a property-for-share deal involving 11 malls—located in Novaliches, Cainta, Luisita, Cabanatuan, Lipa, Sta. Rosa, Imus, Los Baños, Palawan and Ormoc—and two office buildings.

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The assets span a total of 347,329 square meters (sq m), expanding RCR’s gross leasable area to 827,808 sq m.

In turn, RLC subscribed to 4.99 billion of RCR’s primary common shares at P6.80 each. The deal was meant to diversify RCR’s predominantly office asset portfolio.

RLC’s earnings in 2024 climbed by 10 percent to P13.21 billion due to higher foot traffic in its malls, offsetting the weak residential market.

Its top line inched up by 2 percent to P42.88 billion, buoyed by its investment portfolio of malls, offices, hotels and logistics.