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With Olympics looming, US advises against travel to Japan due to COVID-19

WASHINGTON — The US State Department on Monday urged against travel to Japan because of a new wave of coronavirus cases just two months before the Tokyo Olympics are set to begin.

The department also issued its “Level 4” warning against travel to Sri Lanka amid surging infections there. It saw a lower risk in visiting the Caribbean nation of Antigua and Barbuda , lowering the islands to a “Level 3 — Reconsider Travel” designation.

The US “Do Not Travel” advisory and guidance for Japan did not mention the Olympics specifically but warned against visiting the country now. A top Olympic official last week said the Games would start as planned on July 23 even under a state of emergency after being postponed in 2020 during the pandemic.

“Travelers should avoid all travel to Japan,” the US Centers for Disease Control and Prevention said in new guidance. “Because of the current situation in Japan, even fully vaccinated travelers may be at risk for getting and spreading coronavirus disease 2019 (COVID-19) variants and should avoid all travel to Japan.”

The US Olympic & Paralympic Committee, which oversees Team USA, said in a statement to Reuters that it has been made aware of the updated State Department advisory as it relates to Japan.

“We feel confident that the current mitigation practices in place for athletes and staff by both the USOPC and the Tokyo Organizing Committee, coupled with the testing before travel, on arrival in Japan, and during Games time, will allow for safe participation of Team USA athletes this summer,” the statement said. — Reuters

Nikola Jokić scores 38 as Nuggets pull even with Blazers

Nikola Jokić scored 38 points, Michael Porter, Jr. had 18 and the host Denver Nuggets beat the Portland Trail Blazers (128-109) in Game 2 of their Western Conference first-round playoff series on Monday.

The Nuggets evened the best-of-seven series 1-1 with help from Paul Millsap (15 points), Aaron Gordon (13), Monte Morris (12) and Facundo Campazzo (12).

Game 3 is Thursday night in Portland.

Damian Lillard scored 22 of his game-high 42 points in the second quarter and added 10 assists for the Trail Blazers. CJ McCollum scored 21, Norman Powell had 15 and Jusuf Nurkić grabbed 13 rebounds.

It was a testy game that featured four technical fouls and two flagrant fouls.

Denver led by 12 at half time and stretched the margin to 81-66 on a basket by Campazzo. The Trail Blazers got within 10, but the Nuggets scored seven straight to lead 91-74.

The hosts pushed the gap to 20 on a 3-pointer by Gordon late in the third, but the Trail Blazers hit two from deep in the final 30 seconds to get within 101-87 heading into the fourth.

Portland further cut into the deficit to claw within 11 early in the final period before Denver pulled away. Millsap hit two free throws and a layup, Porter drained a 3-pointer and then had a steal that led to a dunk for Shaquille Harrison during an 11-2 run that made it 114-94 with 7:41 left.

The Trail Blazers scored the next four points, but the Nuggets came right back and went ahead by 21 on a 3-pointer by Campazzo. Portland emptied its bench with 3:36 left.

The Nuggets led by six after the first quarter and opened up an 18-point lead early in the second, but Lillard brought the Trail Blazers back on his own. He hit four of his eight first-half 3-pointers in 3 1/2 minutes to cut the deficit to 65-61.

Denver scored the last eight points of the quarter to lead 73-61 at the break. — Reuters

No underdog

The Suns felt disrespected heading into Game One of their first playoff series since being swept in the 2010 Western Conference Finals. Nope, it wasn’t because they were about to face the Kobe Bryant-led Lakers, who just so happened to administer the beating they took 11 years ago en route to the championship. Rather, it was because they were about to face the LeBron James-led Lakers, who just so happened to be favored by pundits despite being the lower seeds coming off a championship. Evidently, finishing with the second best regular season record in the National Basketball Association was not enough for them to chuck their supposed underdog status.

To be sure, the Suns approached the 2020-21 season with purpose. They missed making the 2020 playoffs, but were buoyed by a perfect 8-0 slate in the bubble. They then succeeded in latching on to point god Chris Paul, would wound up providing them with the leadership they required to grow. In no small measure, they likewise lucked into respected bench tactician Monty Williams, who hitherto walked away from consideration by — who else — the Lakers for the vacant head coaching job. The twin developments enabled them to escape their troubled history of underperformance and, by all accounts but their own, exceed themselves.

There is, to be sure, no glossing over the past. For the Suns to gain recognition and acceptance as contenders, they first need to win. And, in this regard, it’s only fitting that they will be going through the Lakers. Advancing to the West Semifinals at the expense of the defending titleholders gives them the definitive legitimacy they aren’t really seeking, but nonetheless deserve. And if their sterling performance in Game One the other day is any indication, they’re up to the task, as daunting as it may seem.

Only time will tell if the Suns manage to upend the Lakers. To truly scale their Mount Everest, they would have to be as committed today — and until they claim four matches in the best-of-seven affair. One thing’s clear in any case; if they lose the series, it won’t be because they beat themselves.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Vista Mall supports nationwide vaccination program through partnerships with LGUs

In cooperation with the Department of Health and the local government units of Taguig City and Tanza, Vista Mall has signed on to become an official partner of the nationwide COVID-19 vaccination program, ResBakuna, as satellite vaccination centers for the residents of Taguig City and the municipality of Tanza in Cavite.

Satellite vaccination sites are put in place to help decongest local health centers and to make inoculation safer and more convenient for residents. Given Vista Mall’s longstanding commitment to being an active and productive member of the communities they are present in, it was not a hard decision for the management to open its doors to the ResBakuna program.

According to Vista Land Commercial Division Managing Director Miss Camille A. Villar, “We are a proud partner of the government in rolling out its nationwide vaccination program. While our industry continues on its path towards recovery due to the effects of the pandemic, we accept this opportunity and responsibility whole-heartedly as we remain committed to our common goal of beating COVID-19.”

On March 31, the City of Taguig, through an official statement from the office of Mayor Lino Cayetano, announced Vista Mall as one of the city’s vaccination centers. Through the years, Vista Mall Taguig has been a dedicated partner to the local government of Taguig City. The well-loved mall has been repeatedly selected as a satellite center for various endeavors and programs of the local government due to its convenient location to the majority of Taguig residents.

Meanwhile, Vista Mall and the local government of Tanza along with DOH launched Vista Mall Tanza as an official satellite vaccination center for its “Bakunadong Tanzeño, Protektado sa Covid-19” program on April 22, 2021. A brief ribbon-cutting ceremony was held at the designated vaccination area within the mall’s premises and was inaugurated by Tanza municipal Mayor Yuri Pacumio and Vista Mall Tanza Cluster Operations Head, Rhona Quilon.

“We are doing our part by providing more accessible and convenient vaccination centers through our malls, so it is our utmost hope that more Filipinos register and show up for the ResBakuna vaccination program. Together, we will weather this crisis and recover as one.” Ms. Villar added.

In addition to permitting their malls to become satellite vaccination centers, the Villar Group likewise supports the nationwide vaccination campaign through its group-wide vaccination program, VHealthy. The group has ordered vaccines from Moderna and Oxford- AstraZeneca for its existing workforce and is also finalizing the process to allow employees to access vaccines for their families and household.

US advises against travel to Japan due to COVID-19

WASHINGTON – The U.S. State Department on Monday urged against travel to Japan because of a new wave of coronavirus cases just two months before the Tokyo Olympics are set to begin.

The department also issued its “Level 4” warning against travel to Sri Lanka amid surging infections there. It saw a lower risk in visiting the Caribbean nation of Antigua and Barbuda , lowering the islands to a “Level 3 – Reconsider Travel” designation.

The U.S. “Do Not Travel” advisory and guidance for Japan did not mention the Olympics specifically but warned against visiting the country now. A top Olympic official last week said the Games would start as planned on July 23 even under a state of emergency after being postponed in 2020 during the pandemic.

“Travelers should avoid all travel to Japan,” the U.S. Centers for Disease Control and Prevention said in new guidance. “Because of the current situation in Japan even fully vaccinated travelers may be at risk for getting and spreading COVID-19 variants and should avoid all travel to Japan.”

The U.S. Olympic & Paralympic Committee, which oversees Team USA, said in a statement to Reuters that is has been made aware of the updated State Department advisory as it relates to Japan.

“We feel confident that the current mitigation practices in place for athletes and staff by both the USOPC and the Tokyo Organizing Committee, coupled with the testing before travel, on arrival in Japan, and during Games time, will allow for safe participation of Team USA athletes this summer,” the statement said. — Reuters

Philodrill Corporation announces schedule of virtual stockholders’ meeting

PSE sets P200-B capital-raising target

BW FILE PHOTO

By Keren Concepcion G. Valmonte

THE PHILIPPINE Stock Exchange (PSE) is hoping at least P200 billion in capital will be raised at the stock market this year, as it seeks to encourage more small companies to list their shares.

“I hope that at least P200 billion of capital will be raised at the Philippine Stock Exchange,” Ramon S. Monzon, president and chief executive of the bourse operator, told BusinessWorld in a video call on Thursday.

If achieved, this would be nearly double the P104-billion capital raised at the PSE in 2020.

The pipeline for capital-raising activities is seen to be robust with companies like Monde Nissin Corp. and Del Monte Philippines, Inc. (DMPI) planning mega-initial public offerings (IPOs) and firms launching their own real estate investment trusts (REITs).

Capital-raising activities surged 116% to P41.6 billion at the end of March from P19.24 billion in the same period ending March 2020.

Mr. Monzon said there is a “sustained drive to get more listings,” as the PSE has the lowest number of listed companies in the Association of Southeast Asian Nations (ASEAN) region. There are currently 272 companies listed at the local bourse. 

To achieve this, the PSE is working with the Department of Trade and Industry (DTI) and the Board of Investments (BoI) to amend the Omnibus Investments Code of 1987, which requires BoI-registered companies to sell at least 10% of its capital stock to the public.

The PSE is proposing that BoI-registered companies with 20 or more investors or those qualified to be a publicly listed company will be required to list at the exchange and offer their shares to the public “in exchange for the incentives they’re trying to avail from the government,” such as tax exemptions. 

Mr. Monzon also said the PSE is collaborating with DTI, Financial Executives Institute of the Philippines (FINEX), and the US Agency for International Development (USAID) on the DELIVER (Delivering Effective Government for Competitiveness and Inclusive Growth) project, which helps with the capacity building of startups and small and medium enterprises (SMEs). 

Together with the DTI, the PSE is also planning to conduct listing education seminars for “high-growth sectors” and SMEs.

Mr. Monzon hopes that at least two or three SMEs will list on the stock exchange, especially after listing rules were eased. 

“SMEs need capital so that’s why we said we have to relax our rules so that the SMEs can go to the capital market to raise funds,” Mr. Monzon said. “I think they’re temporarily shut out of the credit market.”

The PSE has relaxed its requirements for listing at the SME board. It has also introduced guidelines for sponsoring, which allows those who cannot meet requirements to list through corporations or partnerships accredited by the exchange and registered with the Securities and Exchange Commission.

The PSE’s P200-billion capital-raising target will not include those raised by SMEs yet.

“We have these different programs for SMEs, [but] we don’t expect this to bear fruit really until next year,” Mr. Monzon said.

The PSE is organizing a virtual roundtable discussion today (May 25), where executives of listed companies will share stories from their successful IPO experiences.

RETAIL INVESTORS
Meanwhile, local retail investors are becoming more active in the stock market, as they accounted for 74.3% of stock market transactions in the first half.

Citing the PSE’s report to the Capital Market Development Council (CMDC), the Finance department said retail investors accounted for 43.3% of the volume traded by local investors in the January to March period. This is significantly higher than the 26.9% in 2020 and 18.2% in 2019.

A similar trend was observed in the fixed-income market after investor-related trading accounted for the bulk of the total traded volume last quarter.

Local investors have “stepped up,” Mr. Monzon was quoted as saying in a statement, lifting the average trading volume by 49.6% in the first three months from last year’s level. This helped offset the sharp drop in foreign participation to 25.7% of the total volume, against 45.4% in 2020 and 55.5% in 2019.

“Market liquidity is off to a good start. Trading in the first quarter remains robust. We have almost a 50% increase in value turnover. Retail investors are very active in the stock market at least in the first quarter of 2021,” said Mr. Monzon, who noted many of the retail investors used their accumulated savings to buy stocks.

Finance Secretary Carlos G. Dominguez III, who chairs the CMDC, added that improved public trust and confidence on regulators also helped attract local investors.

“Let’s keep that in mind — the environment of confidence in the system. Regulators are so important to provide guarantees to investors and ensure them that they are not going to be cheated,” Mr. Dominguez said.

In the bond market, Philippine Dealing & Exchange Corp. (PDEx) President-CEO Antonino A. Nakpil noted reduced activities last quarter compared with the year-ago level. Mr. Nakpil noted that investor-related trading accounted for 59% or P898 billion of the P1.5-trillion total traded volume as of end-March.

Trading at the secondary market remained active despite the increase in bond yields, he said, after the benchmark 10-year Treasury bond rates increased to 4.5% in March from 3% in January.

National Treasurer Rosalia V. de Leon, who is also a member of the interagency council, said measures rolled out to make bonds more accessible to retail investors and various financial literacy campaigns also helped attract greater participation among small investors in the debt market.

Maiden issuances in corporate bond markets, however, were tepid with just P59 billion in new bond listings that quarter. Including the volume of maturing bonds, Mr. Nakpil said the outstanding amount of listed bonds dipped 1.36% to P1.45 trillion as of end-March, from the P1.47-trillion level last year.

“The increase in retail investors’ participation in the stock market is a phenomenon not only observed in the PSE, but almost in every other major stock exchange as well,” said Timson Securities, Inc. Trader Darren Blaine T. Pangan via Viber.

“With commuting time being freed up due to mobility restrictions, this may have spurred people to become more acquainted with trading and investing as part of the ways in which they can stay productive amid the ongoing COVID-19 situation across the globe,” Mr. Pangan added. — with Beatrice M. Laforga

Senate OK’s estate tax amnesty extension

THE SENATE approved on third and final reading the measure seeking to extend the estate tax amnesty  for another two years, after low revenues generated by the program so far.

With 23 affirmative votes, the Senate approved Senate Bill No. 2208 which sought to amend Republic Act (RA) No. 11213 or the Tax Amnesty Act by extending the application period to June 14, 2023.

RA 11213, which was set to expire on June 15, 2021, gives a one-time opportunity for taxpayers to settle their unpaid estate taxes as of Dec. 31, 2017.

In her sponsorship speech on May 18, Senator Pilar Juliana S. Cayetano, chairperson of the Ways and Means committee, said applications for estate tax amnesty fell due to the lockdown restrictions.

She also noted the low revenue collection from the estate tax amnesty program, which stood at P2.5 billion, still below the P6.28-billion target, citing data presented by the Bureau of Internal Revenue during an earlier hearing.

“The Committee deems it appropriate that we extend the period of availment of the estate tax amnesty for another two years, in order to allow Filipinos who have not been able to affordably settle their outstanding tax liabilities during the period, to do so,” Ms. Cayetano said.

The Senate version removed the “proof of settlement” requirement that the heirs have to submit as it is one of the major reasons for non-availment of the estate tax amnesty, she said.

Senators also adopted the amendment to the committee-level approved bill, deleting the provision which stated that if the estate has properties still in the name of a decedent or donor, the present holder, heirs, or administrators shall only file one estate tax amnesty return.

The said provision was flagged by Finance Undersecretary Antonette C. Tionko during the hearing early this month as it was vetoed by President Rodrigo R. Duterte when he signed RA 11213 in February 2019.

The House of Representatives approved its counterpart House Bill 7068 in September last year.

House Ways and Means committee Chair Jose Ma. Clemente S. Salceda sent a note on May 20 to House Speaker Lord Allan Jay Q. Velasco to ratify the Senate version of the bill. A copy of the letter was released last Friday.

The House version reinstated the provision that was vetoed by Mr. Duterte in signing the law and retained the proof of settlement requirement. It also sought to extend the amnesty by two years, by changing the deadline from the original “two years from the effectivity of the Implementing Rules and Regulations of this Act” to four years. — Vann Marlo M. Villegas

17 projects worth P395B up for ICC review

PHILIPPINE STAR/ MICHAEL VARCAS

THE NATIONAL Economic and Development Authority (NEDA) listed 17 infrastructure and other development projects worth P394.96 billion that will be up for review by the Cabinet-level Investment Coordination Committee (ICC).

Latest documents as of May 15 showed these projects are either locally funded or being financed by official development assistance (ODA), at different stages of approval process.

In a separate document, NEDA also identified 26 more projects worth a combined P1.387 trillion as of mid-May that are being reviewed by the NEDA’s ICC technical board.

Generally, NEDA said proposed infrastructure projects have to undergo initial assessment by its ICC technical board, followed by a review by the ICC — Cabinet Committee (CabCom). The NEDA Board, chaired by President Rodrigo R. Duterte, gives the final approval.

The NEDA Board has approved 92 projects worth P3.87 trillion from July 2016 to May 2021.

Projects be reviewed by the ICC-CabCom include eight under the Department of Public Works and Highways (DPWH) and three under National Irrigation Administration (NIA). There are also projects implemented by the departments of Agriculture, Agrarian Reform, Education, Social Welfare, Transportation, as well as the Philippine Competition Commission (PCC).

The biggest projects are the P175.7-billion Laguna Lakeshore Road network project and the P80.7-billion Davao City Expressway project, both funded by ODA.

The Laguna Lakeshore Road project aims to build 376-kilometer (km) primary roads along with viaducts to ease traffic for those traveling to Laguna, Rizal, Quezon and Batangas.

The planned 29.21-km four-lane expressway in Davao City also aims to reduce traffic and connect the main areas with centralized movement of passengers and cargoes to boost development in the region. The ICC-CabCom is waiting for the project to complete the instructions requested by its technical board in February.

The list also includes the P28.98-billion ODA-funded Pasig-Marikina River Basin Flood Management project, and a P25.8-billion acquisition for 40 units of weapon-ready fast response boats for the Philippine Coast Guard. — Beatrice M. Laforga

Philippines seen as ‘clear laggard’ in Asia

PHILIPPINE STAR/ MICHAEL VARCAS
The slow pace of the mass vaccination campaign is mainly due to lack of coronavirus vaccines and vaccine hesitancy. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

THE PHILIPPINE ECONOMY is the “clear laggard” in Asia, as it is likely to only return to its pre-pandemic level by end-2022 due to the snail-paced vaccine rollout, Moody’s Analytics said.

The research arm of Moody’s Investors Service expects the Philippine gross domestic product (GDP) to grow by 5.3% this year, slower than the 6.3% estimate it gave in March. This is also more pessimistic than the government’s 6-7% full-year growth target.

“China, Taiwan, South Korea and Vietnam have returned to previous output levels, while Indonesia and Thailand are on track to return this year. This makes the Philippines the clear laggard in Asia,” Moody’s Analytics Senior Asia Pacific Economist Katrina Ell and Associate Economist Dave Chia said in a note on Monday.

A major drag to the Philippines’ economic recovery is the elevated number of coronavirus disease 2019 (COVID-19) cases, Moody’s Analytics said.

ASEAN economies including Thailand, Malaysia, and Singapore recently saw a spike in infections, prompting governments to tighten restriction measures again.

While the average daily cases have gone down from the highs in April, the Philippines still has the second-highest number of COVID-19 infections in the region following Indonesia.

New COVID-19 cases rose by 4,973 on Monday, bringing the total to 1.18 million.

Moody’s Analytics said the decentralized healthcare system was also a major factor why the country was unable to better handle the pandemic.

“As a result, there were not consistent policies and rigorousness around contact tracing, funding, and quarantine measures for those infected and their close contacts,” Moody’s Analytics said.

The sluggish pace of the country’s mass vaccination campaign is hindering its recovery prospects, amid supply constraints and vaccine hesitancy.

“[T]here is vaccine hesitancy in the Philippines due to misinformation and lasting scars from the 2016 dengue fever vaccine that put children’s health at risk,” Moody’s Analytics said, referring to the Dengvaxia controversy.

Health Undersecretary Maria Rosario S. Vergeire said on Monday that about 4 million vaccine doses have been administered in the country.

Meanwhile, around 950,000 individuals have completed two COVID-19 doses. This is only equivalent to 0.88% of the population being fully vaccinated, based on data from the Johns Hopkins University.

“This [slow vaccination pace] is problematic, because it means the Philippines remains vulnerable to continued local infection spikes, inhibiting the economic recovery as it is assumed the government will reintroduce strict lockdowns to contain further infections,” Moody’s Analytics said.

The government targets to inoculate as many as 70 million Filipinos by end-November, focusing mainly on Metro Manila and surrounding provinces that are deemed to be high risk areas for the virus spread.

The economy’s uncertain recovery will likely heighten inequality.

“The sluggish economic recovery paired with relatively strict lockdown measures has increased inequality. Those in higher-paying jobs tend to be office workers, and they have been able to transition to working from home, while lower-income workers have not had that option,” it said.

The country’s unemployment rate as of March stood at 7.1%, representing about 4.187 million unemployed Filipinos, based on data from the Philippine Statistics Authority. It reached a record-high 17.6% in April last year at the height of the lockdown.

Last year, the economy shrank by a record 9.6% due to the impact of the prolonged lockdown.

Global Ferronickel to take 20% stake in Chinese ore processor

THE board of Global Ferronickel Holdings, Inc. (FNI) has approved the acquisition of a 20% interest in China’s Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTN).

In a disclosure to the stock exchange on Monday, the company said its board considered the proposal of the management to obtain interest in GCTN as part of the effort to “enhance synergy” between FNI as an ore supplier and GCTN as a value-added processor.

Further, the disclosure said the acquisition seeks to offer consistent and reliable trade transactions between the parties and provide support for FNI’s diversification projects.

However, FNI did not provide details or figures on its planned acquisition in the stock exchange disclosure.

“Due disclosure will be made once terms and conditions are finalized and definitive agreements are executed,” the company said.

“[The board approved] the authority of the Audit, Risk and Related Party Transaction Committee to ensure that the terms and conditions of the acquisition comply with the requirements applicable to material related party transactions and that the rights of the shareholders and other stakeholders are protected,” it added.

According to its website, GCTN is a firm based in Yangjiang high-tech district in Guangdong, China. It engages in the business of producing high-grade nickel alloy and has more than 900 personnel.

In a previous stock market disclosure, FNI announced that it was targeting a shipment volume of 6 million wet metric tons of nickel ore for 2021. The company also allotted $5 million as capital expenditure for the year.

It added that Platinum Group Metals Corp., the company’s Surigao del Norte-based operating arm, started its shipment of nickel ore to its customers in China on March 29.

On Monday, shares of FNI at the stock exchange went up 3.6% or nine centavos to close at P2.59 per share. — Revin Mikhael D. Ochave

REIT listings signal market confidence — analysts

By Keren Concepcion G. Valmonte

THE growing number of companies offering or expressing interest in tapping the real estate investment trust (REIT) market signal confidence in the capital market, but their dividends will be watched by investors, analysts said.

“It shows that companies feel that the capital market is a good place to raise money, and it also shows that there are available investors ready to take them,” Juanis G. Barredo, chief technical analyst of COL Financial Group, Inc., said in a Viber message last week.

“If they feel or sense otherwise, they [will] defer such offerings,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said seeing more companies offer REITs is “a good signal on the further progress and development of the country’s capital market.”

DoubleDragon Properties Corp. debuted its REIT at the stock exchange in March to hold the record number of small investors. Listed 17.83 billion shares were priced at P2.25 each.

In the same month, Filinvest Land, Inc. subsidiary Cyberzone Properties, Inc. filed for the registration statement of its REIT initial public offering (IPO) with the Securities and Exchange Commission (SEC). The company is also in the process of applying to change its name to Filinvest REIT Corp.

Cyberzone Properties’ REIT portfolio will include 16 office towers, which includes a space for retail in Northgate Cyberzone and a Cebu-based office tower with a retail component.

Robinsons Land, Corp.’s subsidiary Robinsons Realty Management Corp. also filed a REIT IPO registration statement with the SEC last week, and is seeking to change its name to RL Commercial REIT, Inc. (RLC REIT). Its REIT includes 14 assets accredited by the Philippine Economic Zone Authority. It has more than 400,000 square meters of gross leasable area in Metro Manila and commercial centers beyond the region.

Meanwhile, both Megaworld Corp. and Vista Land & Lifescapes, Inc. have expressed interest in tapping the REIT market.

“I guess with the success of raising money and with the so far good motions of AREIT, [Inc.], some will try to imitate this success,” Mr. Barredo said. “But they have to have a good and solid growth and dividend proposition to make it worthwhile.”

AREIT is Ayala Land, Inc.’s REIT and is also the country’s first-ever REIT listing, which debuted on the stock market in August last year.

RCBC’s Mr. Ricafort said a REIT issuance will be a “win-win” for both the issuers and the investing public.

“REITs allow the investing public to earn much higher dividend yields at a time when interest rate returns or bond yields still remain near record lows,” he said in a text message.

He added that REITs also allow owners or companies to raise more funds “in an innovative manner based on selected/specific commercial properties offered.”

DIVIDENDS OF REITS

“Once many begin to list, it will boil down to who shows better return promise,” Mr. Barredo said. “If more than one offering comes in a two-month period or so it may be more draining to the market and curtail the upsides of an offering due to the limited demand.”

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that investors should evaluate the following before investing in a REIT: the type of projects being listed, the tenants and the rental income, the dividend payment, and if the company aims to add projects to their REIT portfolio.

REIT investors earn through the income generated from leases and other gains from commercial real estate.

For its part, the Philippine Stock Exchange (PSE) wants to encourage other companies from different industries to offer REITs, such as toll roads, warehouses, and hospitals.

“It could be many things, that’s the growth area that we want to look at right now,” PSE President and Chief Executive Officer Ramon S. Monzon said in a video call on Thursday.

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