Philippine REIT Growth Opens New Doors for Investors
The Philippine Real Estate Investment Trust (REIT) market cap nears PHP300 billion in just 2 years. Here’s what it means for investors.
Real Estate Investment Trust, or REIT, refers to “companies that own or finance income-producing real estate across a range of property sectors.” These companies trade on major stock exchanges and in turn, offer benefits to investors—including small Filipino investors—by letting them participate in the real estate market and earn through dividends.
To date, the country’s REITs now make up 1.4% of the Philippines’ Gross Domestic Product (GDP) after just 2 years—which Finance Secretary Carlos Dominguez says is “just the beginning.”
A Powerful Financial Instrument
With REIT market capitalization totals now reaching approximately PHP300 billion after Citicore Energy REITs Corp entered the playing field by listing on February 22, things are looking up for the country.
“I describe REIT as a powerful financial instrument that will both raise sufficient capital and open the door for investors to participate in our markets,” Dominguez explains. “This powerful financial instrument holds much promise to help boost our economic recovery.”
Although REITs have been around for a long time, the offering was made possible after its rules were ironed out by economic managers. “In 2020, the Duterte administration resolved the issues that prevented REITs to flourish in the country for more than 2 decades,” he adds.
In fact, PSE president and CEO Ramon Monzon reveals that REIT shares are part of the 50 most actively traded stocks in terms of value—based on data from January 3 to February 17, 2022. “The high level of interest among investors for both REITs and renewable energy companies obviously contributed to the brisk demand in the shares of CREIT,” Monzon says.
Aside from Citicore’s REITs, other players in the market include Ayala Land’s AREIT, DoubleDragon’s DDMP REIT Inc, Megaworld’s MREIT, Filinvest’s FILREIT, as well as Robinsons Land’s Robinsons Commercial REIT.