Something good in our stock market is brewing. Three Real Estate Investment Trust (REIT) companies have been publicly listed, and two more are on the way. What does this mean for us investors and how can we grow money out of this?
Yes, the past year might not have been that kind to our economy but we fared well enough that amid the circumstances, new business opportunities have sprung. Aside from our rise in digital media, e-commerce, and delivery platforms, another beacon of hope emerged during the pandemic.
Real Estate Investment Trust (REIT) is a company that owns, operates, and finances income-generating real estate assets. Modelled after mutual funds, a REIT company consolidates the capital of investors and this allows investors to invest in real estate assets without having to fully acquire them.
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The Ayala Land REIT held its landmark listing ceremony on August 13 of last year, making history as the country's first Real Estate Investment Trust company. It was after it successfully completed its PHP13.6 billion initial public offering (IPO). Last March, DoubleDragon Properties Corp. followed through a PHP14.7 billion IPO, with Injap Sia II at the helm. Then just recently, Filinvest Land Inc. completed its PHP12.6 billion IPO. As of writing, Robinsons Land is undergoing its IPO and Megaworld is to follow in September.
We talked to Kash Salvador, director and head of Santos Knight Frank's Investment and Capital Markets, to guide us through REIT and how we could integrate it into our investment portfolio.
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