Connect with us

Hi, what are you looking for?


REIT listings signal market confidence — analysts

By Keren Concepcion G. Valmonte

THE growing number of companies offering or expressing interest in tapping the real estate investment trust (REIT) market signal confidence in the capital market, but their dividends will be watched by investors, analysts said.

“It shows that companies feel that the capital market is a good place to raise money, and it also shows that there are available investors ready to take them,” Juanis G. Barredo, chief technical analyst of COL Financial Group, Inc., said in a Viber message last week.

“If they feel or sense otherwise, they [will] defer such offerings,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said seeing more companies offer REITs is “a good signal on the further progress and development of the country’s capital market.”

DoubleDragon Properties Corp. debuted its REIT at the stock exchange in March to hold the record number of small investors. Listed 17.83 billion shares were priced at P2.25 each.

In the same month, Filinvest Land, Inc. subsidiary Cyberzone Properties, Inc. filed for the registration statement of its REIT initial public offering (IPO) with the Securities and Exchange Commission (SEC). The company is also in the process of applying to change its name to Filinvest REIT Corp.

Cyberzone Properties’ REIT portfolio will include 16 office towers, which includes a space for retail in Northgate Cyberzone and a Cebu-based office tower with a retail component.

Robinsons Land, Corp.’s subsidiary Robinsons Realty Management Corp. also filed a REIT IPO registration statement with the SEC last week, and is seeking to change its name to RL Commercial REIT, Inc. (RLC REIT). Its REIT includes 14 assets accredited by the Philippine Economic Zone Authority. It has more than 400,000 square meters of gross leasable area in Metro Manila and commercial centers beyond the region.

Meanwhile, both Megaworld Corp. and Vista Land & Lifescapes, Inc. have expressed interest in tapping the REIT market.

“I guess with the success of raising money and with the so far good motions of AREIT, [Inc.], some will try to imitate this success,” Mr. Barredo said. “But they have to have a good and solid growth and dividend proposition to make it worthwhile.”

AREIT is Ayala Land, Inc.’s REIT and is also the country’s first-ever REIT listing, which debuted on the stock market in August last year.

RCBC’s Mr. Ricafort said a REIT issuance will be a “win-win” for both the issuers and the investing public.

“REITs allow the investing public to earn much higher dividend yields at a time when interest rate returns or bond yields still remain near record lows,” he said in a text message.

He added that REITs also allow owners or companies to raise more funds “in an innovative manner based on selected/specific commercial properties offered.”


“Once many begin to list, it will boil down to who shows better return promise,” Mr. Barredo said. “If more than one offering comes in a two-month period or so it may be more draining to the market and curtail the upsides of an offering due to the limited demand.”

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that investors should evaluate the following before investing in a REIT: the type of projects being listed, the tenants and the rental income, the dividend payment, and if the company aims to add projects to their REIT portfolio.

REIT investors earn through the income generated from leases and other gains from commercial real estate.

For its part, the Philippine Stock Exchange (PSE) wants to encourage other companies from different industries to offer REITs, such as toll roads, warehouses, and hospitals.

“It could be many things, that’s the growth area that we want to look at right now,” PSE President and Chief Executive Officer Ramon S. Monzon said in a video call on Thursday.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



THE SENATE on Monday ratified the Bicameral Conference Committee report on a measure that seeks to lower the minimum investment hurdle for foreign retailers...


The Philippines is one of 17 countries that have kept schools fully closed since the pandemic began, according to a report released by the...


Workers are busy cleaning in preparation for the restaurant’s reopening in Marikina City. — PHILIPPINE STAR/ MICHAEL VARCAS THE RESTAURANT industry is anticipating some...


EXCISE TAX collections from cigarettes jumped by 31% to P83 billion in the first seven months, with more than half coming from Philip Morris...


The world’s largest franchisor of home service brands, has announced the acquisition of Pimlico Plumbers, central London’s leading independent residential and commercial service and...


MEGAWORLD Corp. will be spending P40 billion to develop an eco-tourism township in Palawan in the next 10 to 15 years, Andrew L. Tan’s...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!