Finance Secretary Carlos Dominguez III
MANILA – The public listing of the Philippines’ fourth Real Estate Investment Trust (REIT) company amid the lingering pandemic demonstrates the beneficial results to the economy of the Duterte administration’s efforts to allow these financial instruments to flourish, and confirms investor optimism in the country’s solid recovery, Finance Secretary Carlos Dominguez III said Tuesday.
Dominguez said it has only been 20 months since the Duterte administration fixed the flaws in the regulatory framework for REITs after more than a decade of deadlock, yet the country has already seen four property giants establishing their respective real estate investment trusts to date.
The fourth one -- Robinsons Land Commercial REIT (RCR) -- is the largest so far to be listed in the stock market in terms of market capitalization, portfolio valuation and asset size, which all reflect its “impressive portfolio and sterling record as a property developer,” Dominguez said.
RCR’s listing follows the earlier public offerings of Ayala Land Inc. (ALI)’s REIT (AREIT Inc), DD Meridian Park REIT (DDMP REIT Inc.) of DoubleDragon Properties Corp. (DDPC), and Filinvest REIT Corp. (FILREIT) of Filinvest Land Inc.
“This public offering is another vote of confidence that the Philippine economy is on track to a solid recovery from the difficulties brought about by the pandemic,” Dominguez said in his pre-recorded message at RCR’s listing in the Philippine Stock Exchange (PSE) on Tuesday morning.
"As we fast-track the rollout of the vaccination program for our people, deepen support to domestic businesses, and set the stage for high-value investments to flourish in the country, the prospects for a rapid and strong economic recovery become even clearer,” he said.
Dominguez said the strong performance of REIT listings underscores the thirst of the market for secure and profitable investments.
“It also affirms the REIT as a powerful instrument for capitalizing property development in the country. Most of all, the investments attracted by REIT confirm investor optimism in our economy,” he added.
Dominguez said Robinsons Land extended its land leases in RCR for 99 years, making it the longest land lease tenure among Philippine REITs to date, which in turn, provides long-term sustainability and predictability to one’s investments.
“I am sure that Robinsons Land’s REIT listing will help us accelerate our economic resurgence. Its reinvestment plan will further energize the real property industry and the other productive sectors of our economy. This will help create many jobs and attract more economic activity nationwide,” he said.
Dominguez thanked Robinsons Land for its confidence in the strength of the Philippine economy.
Aside from efficiently raising capital for the real property sector, he said the REIT opens opportunities for the average Filipino to be part of, and profit from, the economic growth that the country expects in the coming period.
Allowing the average Filipino to invest in REITs contributes to the “broadening of the base of our financial system towards building a more inclusive economy,” he added. (PR)
