opungwins @ t92 vv555 PHL REITs give better yields for investors–Leechiu exec

INVESTORS will get better yields if they invest in Real Estate Investment Trusts (REITs) in the Philippines, instead of those in established markets abroad.

In a news briefing, Leechiu Property Consultants Inc. (LPC) Director for Investor Sales Tam Angel said, Philippine REITs were among the earliest beneficiaries in the Philippine Stock Exchange (PSE) from the lowering of the key policy rate of the Bangko Sentral ng Pilipinas (BSP). Angel cited the stocks’ year-on-year growth, “which ranged from as high as 44 percent for PREIT (Premier Island Power REIT Corp.), 20 percent for RCR (RL Commercial REIT Inc.), and 19 percent for AREIT [Inc.].”

Thus, compared to markets abroad, Philippine REITs continue to be an “attractive investment option, still offering yields of 6-10 percent amid the challenges in the PSE. It outperforms global counterparts like Japan (3-5 percent), the United States (3-4 percent), and Singapore (5-6 percent),” he added.

Tam pointed out while established markets provide investors stability, these come with lower yields and limited growth. “The Philippine market, on the other hand, remains dynamic and offers significant expansion opportunities,” he stressed.

Rate cut key to property growth

THE LPC executive also continued to press for the easing in the central bank’s key policy rates to help stimulate the growth in the property sector next year.

Angel said, “It’s very comforting news that the BSP seems to be maintaining its furthe monetary easing. This is critical at this stage of the real estate economy because we feel, in general, the property sector is trading at support levels. And of course, a lowering interest rate environment will provide the much-needed stimulus in this sluggish market.”