RCR GETS ‘AAA’ CREDIT RATING
Newly-listed RL Commercial REIT Inc. (RCR), the country’s largest real estate investment trust, obtained a triple-A credit rating from local credit watchdog Philippine Rating Services Corp. (PhilRatings).
This means that if and when the Robinsons Land Corp.-sponsored real estate investment trust (REIT) decides to borrow money for expansion programs, lenders are likely to give favorable interest rates.
Also, the investment-grade issuer credit rating allows RCR to increase its leverage limit from 35 percent to 70 percent of the total value of its deposited property, according to the REIT implementing rules and regulations. This gives RCR greater financial flexibility to support its organic and inorganic growth for long-term sustainability.
The PRS Aaa rating is the highest issuer credit rating assigned by Philratings. This suggests that the issuer has a strong capacity to meet its financial commitments relative to that of other Philippine corporations.
The outlook on the rating is stable, which means it is expected to remain unchanged in the next 12 months.
RCR is the largest REIT in the
Philippines, with an initial portfolio of 14 Philippine Economic Zone Authority-accredited properties and high-quality business process outsourcing-oriented tenant base.
The rating took into account RCR’s experienced and professional management team, and the solid backing of its sponsor, Robinsons Land, a leading real estate developer in the country.
It likewise considered the strong financial track record and proven resilience of the properties in the REIT’s portfolio amid the COVID-19 pandemic, alongside RCR’s zero-debt status, which gives RCR significant headroom to tap the debt market to fund its future expansion.
RCR is the Philippines’ largest REIT to date, in terms of market capitalization at P64.2 billion; property valuation at P73.9 billion; asset size at 425,315 square meters in gross leasable area and REIT initial public offering size of P23.5 billion.
RCR, the fourth REIT to come to market, also has the widest geographical coverage, covering nine locations in Luzon, Visayas and Mindanao, and the longest average land lease tenure of 89 years.