ROBINSONS Land’s RL Commercial REIT Inc. (RCR) on Tuesday listed on the Philippine Stock Exchange as the country’s largest real estate investment trust (REIT) in terms of market capitalization.
RCR is the country’s biggest REIT so far in terms of market capitalization of P64.2 billion, amount of capital raised, total gross leasable area, and valuation of initial property portfolio.
It has a portfolio of 14 Philippine Economic Zone Authority-accredited commercial properties in diverse locations across the country, with a total gross leasable area of 425,315 square meters, RCR said.
The company earlier said proceeds of the initial public offering (IPO) would be used in its Philippine projects that include malls, offices, residences, hotels, industrials and logistics facilities, among others.
“The success of our IPO underscores the Philippines’ potential as a vibrant REIT market, and it bodes well for the future of commercial real estate in the country,” said RCR chairman Frederick Go.
REIT is a financial instrument that allows investors, even the smaller ones, to participate in the real estate industry and earn through dividends.
Other property developers have listed their own REITs offering including Ayala Land’s AREIT, DoubleDragon’s DDMP, and Filinvest’s Filinvest REIT.
Megaworld is also set to list its own REIT firm, MREIT, later this month.
Investor optimism
The public listing of the Philippines’ fourth REIT company amid the lingering pandemic demonstrates investor optimism in the country’s solid recovery, Finance Secretary Carlos Dominguez III said.
“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 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.
RCR, with a listing price of P6.45, opened at P6.55 on its debut before closing at P6.46.
Dominguez said, “The strong performance of our 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.”
“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,” Dominguez said.
Dominguez thanked Robinsons Land for its confidence in the strength of the Philippine economy.
He said that aside from efficiently raising capital for the real property sector, 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,” Dominguez said. (CSL/With PR)