More Realty Firms To Tap Philippine REIT Market (The Philippine Star)
October 21, 2020 – The successful listing of the country’s first real estate investment trust (REIT) at the stock exchange will encourage more real estate players to convert some of their portfolios into REITs.
This, in turn, would help the local bourse recover from the effects of the pandemic, said Dolmar Montanez, SGV & Co Partner for Capital Markets, in a report.
He noted that in the Philippines, many companies have shelved their plans to go public considering the effect of the pandemic on local businesses and the overall economy.
“Only two companies completed their IPOs this year, with a total size of approximately $278 million. We expect to see another initial listing by the end of October, which is expected to be the biggest since 2016. What is noteworthy is the landmark listing of the first REIT in the country 10 years after the REIT law was passed by Congress,” Montanez said, referring to the listing of Ayala Land Inc.’s AREIT.
Edgar “Injap” Sia’s MerryMart also made its market debut last June.
Montanez said the first REIT IPO listing may encourage other real estate players to list in the market.
Elsewhere, global IPO activities have already rebounded sharply, hitting historic highs in the third quarter.
ASEAN markets for one saw strong growth in IPO volume.
“Globally, YTD (year-to-date) IPO activity accelerated, resulting in a 14 percent increase in the total number of IPOs to 872, and an impressive 43 percent rise in proceeds of $165.3 billion,” the report said.
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