RCBC bullish on REITS market
YUchengco-led lender Rizal Commercial Banking Corp. (RCBC) is maintaining its bullish outlook on the local real estate investment trust (Reit) market, mainly due to low interest rates and a steady return of dividends.
The bank said that over the years, appreciation of the Reit as an asset class will increase.
RCBC Chief investment officer Helen go-oleta said as an investment asset class, the Reit is professionally managed, being listed in the philippine Stock exchange, and less price-volatile.
Furthermore, Reit investments expose investors to a portfolio of real estate properties without going through the nitty-gritty of owning one. “And 90 percent of the distributable income of the Reit company will be converted to dividends and distributed to investors as earnings,” the executive said.
“For those investors who like the steadiness of a return through dividends and limited outlets as to investment alternatives at this point, focus is now into Reit,” oleta said.
The Reit also enables investors to participate in lucrative property portfolio investments that provide a steady stream of dividends investment returns and prospects for capital appreciation, she added.
Still, RCBC Chief economist Michael L. Ricafort has said investment in REITS is relative to how government addresses the pandemic and the pace of inoculation against Covid-19.
“Any continued recovery in the economy especially if new Covid-19 cases ease amid the expected vaccine rollouts in the coming weeks would help justify additional measures to re-open the economy, thereby would also fundamentally improve the recovery prospects for the property/real estate industry, including Reits,” Ricafort said.
At the moment, only the Ayala Land inc.-led Reit company is listed at the philippine Stock exchange. Double Dragon properties inc., meanwhile, has already priced its initial public offering of its own Reit, which would be listed sometime this month. other property companies have already expressed their plans to create their own Reit.
To invest in Reit, one can open an account with a bank or a securities broker, RCBC said.