FINANCE Secretary Carlos G. Dominguez III sees the growing number of Real Estate Investment Trust (REIT) offerings as a catalyst not just for the country’s quick and strong economic recovery but also for the property sector’s growth beyond the pandemic.
Speaking at the listing ceremony for Filinvest REIT Corporation, Dominguez said REIT has proven to be the ideal tool for raising the billions of pesos required to power property development in the country while at the same time opening attractive and dependable investment opportunities for the average Filipino.
As with the previous REIT offerings, Dominguez said the latest to be listed by Filinvest Land Incorporated in the Philippine Stock Exchange (PSE) amid the Covid-19 pandemic underscores the confidence of investors in the economy’s solid recovery from the impact of the global contagion.
“I wish Filinvest the best and thank its board, officers, and staff for their confidence in the strength of our economy. This REIT offering will be among the catalysts for our quick and strong economic recovery,” Dominguez said.
The finance chief also urged Filinvest to consider expanding its portfolio of sustainable property developments, especially outside Metro Manila.
Dominguez said FILREIT’s portfolio of “Grade A” office and commercial properties located in strategic areas and catering primarily to the business-process outsourcing (BPO) and information-technology (IT) sectors will “surely provide attractive dividend yields for investors.”
Filinvest has also acquired a well-earned reputation for sustainable and green buildings, which should inspire other developers and set the standard for eco-friendly designs that will help achieve the country’s climate ambition of reducing greenhouse gas emissions, said Dominguez, who is chairperson-designate of the Climate Change Commission.
In the same speech, Dominguez said he is “fairly certain” that the country has gone through the worst part of the Covid-19 induced crisis and is well on its way to recovery, as evidenced by the economy’s second-quarter growth of 11.8 percent, which he said is the best quarterly performance in more than three decades.
“Despite the recent lockdown to contain the Delta variant, prospects for a strong economic rebound in 2021 remain promising. Our vaccination program, which is the most potent weapon we have against this unseen enemy, is proceeding at pace. This is a step closer to achieving herd immunity in the country,” he said.
While the second-quarter GDP growth figure technically marked the end of the country’s economic recession, local economists earlier interviewed by the BusinessMirror were not quick to jump on the “recession’s over” train as uncertainties remain.
FILREIT is the third REIT offering in the country after Ayala Land Inc. and DoubleDragon Properties Corp. earlier listed their respective REITs in the PSE amid the pandemic.
The REIT law, with its amended implementing rules and regulations, now allows both small and large investors to own real-estate assets, presenting an alternative and secure investment instrument for middle-income families and overseas Filipino workers.