RCBC bullish on prospects of REITs

Published March 8, 2021, 5:30 AM

by James A. Loyola

Rizal Commercial Banking Corp. (RCBC) is bullish in its outlook for the local real estate investment trust (REIT) market.

The Yuchengco-led universal bank pointed out that 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 that, as an investment asset class, REIT is professionally managed since it is 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 (given the) limited outlets as to investment alternatives at this point, focus is now into REIT,” Oleta said.

She 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 Covid-19 cases ease amid the expected Covid-19 vaccine rollouts in the coming 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.