Rosy prospects for real estate investment trust market

Yuchengco-owned Rizal Commercial Banking Corp. (RCBC) maintains its bullish outlook in the local real estate investment trust (REIT) market.

The listed universal bank said contributors to the growth of the REIT market in the country include low interest rates, a steady return of dividends, appreciation of the REIT as an asset class, as well as the local market being awash with cash.

REITs enable investors to participate in lucrative property portfolio investments that provide a steady stream of dividends investment returns and prospects for capital appreciation.

RCBC investment management head Helen Go-Oleta said as an investment asset class, REIT is professionally managed being listed in the Philippine Stock Exchange, and less price volatile.

Furthermore, REIT investments exposes the 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.

“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.

It is easy to invest in REITs as customers can just open an account with RCBC Trust, or a securities broker like RCBC Securities, to invest their funds whether physically or online.

RCBC chief economist Michael Ricafort also pointed out that the vaccine rollout to treat the Coronavirus disease 2019 (Covid19) would mean lesser cases which will help the economy rebound as well as the different sectors comprising it.

“Any continued recovery in the economy especially if new Covid19 cases ease/improve amid the expected Covid19 vaccine rollouts in the coming weeks/months 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. RCBC is a member of the Yuchengco Group of Companies (YGC).