Local credit watchdog Philippine Rating Services Corp. has issued a triple-A issuer rating with a stable outlook on RL Commercial REIT (RCR), the flagship real estate investment trust of Robinsons Land Corp.
The issue credit rating of PRS Aaa is the highest credit rating assigned by PhilRatings on borrowers, suggesting that the borrower’s capacity to meet its financial commitment on the obligation is deemed “extremely strong.”
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 of 425,315 square meters in gross leasable area, and initial public offering size of Php23.5 billion.
It also has the widest geographical coverage, covering nine locations in Luzon, Visayas, and Mindanao, and the longest average land lease tenure of 89 years.
A stable outlook means the rating is expected to remain unchanged in the next 12 months.
With the investment-grade issuer credit rating, RCR may increase its leverage limit from 35% to 70% 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.
RCR’s initial portfolio consists of 14 “best-in-class, Philippine Economic Zone Authority (PEZA)-accredited properties and high-quality tenant base. It also has an experienced and professional management team, and the solid backing of its Sponsor, RLC, a leading real estate developer in the country,” Philratings said.
In assigning the rating, Philratings considered RLC’s strong financial track record and proven resilience amidst the COVID-19 pandemic, as well as zero-debt status which gives RCR significant headroom to lever up to fund its future expansion.
SOURCE: Bilyonaryo
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