RL Commercial REIT Corp. (RCR), the real estate investment trust of the Gokongwei Group, said net income in 2023 marginally increased to P4.44 billion from P4.41 billion a year earlier.
Revenues edged up by 1 percent to P5.48 billion from P5.44 billion, driven by "stable high operational performance" of the 16 assets infused by sponsor Robinsons Land Corp., the REIT said in a recent filing.
Rental income increased to P4.54 billion from P4.49 billion, while earnings from dues amounted to P882.3 million, up from P877.6 million in 2022.
RCR also recognized a net increase in fair value change in investment properties of P7 billion in 2023 and a net decrease of P9.98 billion in 2022, following the impact of improving interest rates.
Costs and expenses, meanwhile, widened by 5 percent to P1.12 billion from P1.07 billion due to higher management fees, elevated rent costs and accretion of interest expenses.
RCR's financial position remained healthy, with total assets expanding by 13 percent to P66.3 billion from P58.7 billion and deposits and other liabilities ending at P1.4 billion at end-2023.
"Due to the company's sound financial condition, there is no foreseeable trend or event that may have a material impact on its short-term or long-term liquidity," it noted.
"There is no material commitment for capital expenditures other than those performed in the ordinary course of trade or business... There is no significant element of income arising from continuous operations."
It had no debt as of the end of last year, and the Gokongwei-led REIT vehicle maintained that it had the capacity to leverage up to 35 percent of the deposited property value.
Moving forward, RCR intends to sustain a high occupancy rate by having a diversified tenant base, predominantly targeting all subsectors of the business process outsourcing industry and traditional office tenants.
It also identified Ayala Land and its REIT subsidiary, AREIT; Megaworld Corp. and its subsidiary, MREIT; SM Prime Holdings; Filinvest Land and its subsidiary, FILRT; and DoubleDragon Properties and its subsidiary, DDMPR, as its primary competitors.
RCR shares last traded at P5.19 apiece on Monday. Philippine financial markets were closed on Tuesday and Wednesday and will reopen today.