FILREIT holds its ground on listing debut

Filinvest REIT Corp., (FILREIT) successfully listed at the Philippine Stock Exchange, closing the day one fluctuation higher at ₱7.02 from its initial public offering price of ₱7.00 despite the drop in the local market.

“After months of great uncertainty, we finally arrived in our destination: the Philippine Stock Exchange. We have successfully braved the headwinds the past months and we are excited to welcome Filinvest REIT into the Filinvest family after its successful IPO said FILREIT chairman and Filinvest Land Inc. President Josephine Gotianun-Yap.

She noted that, “Not only have we made history as the country’ s first sustainability themed publicly listed real estate investment trust or REIT. Our I PO may also be considered the ‘bravest’ — given that our stock market debut took place when we are under ECQ conditions.”

Gotianun said that, “While others saw a crisis, Filinvest REIT’s investors saw what we saw: An opportunity to enter the REIT market at an attractive yield. It is an opportunity to participate in the income streams from what has proven to be one of the most resilient industries – the BPO and KPO sector.”

“The stock market debut of FILREIT during the enhanced quarantine period demonstrates the stability and resilience of real estate investment trust as an asset class,” said PSE President Ramon S. Monzon.

He added that, “This speaks of the company’s confidence in the quality of its REIT offering and its optimism of the country’s imminent recovery from the pandemic.”

“This is only the beginning of REITs in the PSE. We have seen the successful listing of three REIT companies in one year, from August 13 last year to today, August 12. With more REIT listings to come, we are hopeful that more investors will be convinced to invest in our stock market,” said Monzon.

He noted that, Through these capitalraising activities, we are not only helping companies source their fund requirements; we are also taking part in ensuring our economy is prepared for full and steady recovery from this global contagion.”

SEC Chairman Emilio Aquino said that, as REITs list, the Philippines’ REIT market capitalization is estimated to be around ₱131.1 billion at present.

“This will represent 0.74 percent of the annualized GDP. That’s 0.81 percent of the total market capitalization and 1.02 percent of the domestic market capitalization. This data implies the Philippine REIT’s potential for growth. REITs in other countries which are already mature markets account for around 3 percent to 7 percent of their GDP,” he said.

“Given the bright outlook of REIT in the local and Asian financial markets and economy, I’m looking forward to the continuous good performance of FILREIT,” Aquino added.

FILREIT offered to the public 1.63 billion common shares with an overallotment option of 163.42 million shares. About 70 percent of the offer shares were offered to institutional buyers based in the Philippines overseas, except the US.

The proceeds raised from the IPO will be used by the company to acquire nine office buildings, three retail buildings, five mid-rise residential buildings, industrial lots, raw land, and expansion of the district cooling system.