Filipinos abroad are encouraged to invest in the Philippine capital markets, with real estate investment trusts (REITs) seen as a compelling entry point for overseas Filipino workers (OFWs) seeking stable and long-term investments.
Systembrand Group, a multidisciplinary agency that delivers integrated solutions across branding, design, communications and investor relations to clients across various industries globally, stated that among the REITs gaining traction are Ayala Land REIT (AREIT), RL Commercial REIT, Megaworld REIT, Citicore Energy REIT and Filinvest REIT.
It said the market capitalizations and dividend yields of these REITs indicate solid valuations to prospective OFW investors.
In particular, the group said that AREIT, the first REIT registered with the Philippine Stock Exchange (PSE) in 2006, is expected to sustain its strong financial trajectory under the new leadership of former Ayala Corp. chief finance officer Alberto de Larrazabal.
Its planned P21 billion asset infusion will expand its leasable area to 4.3 million square meters and boost its assets under management to P138 billion, with cash dividends up by 44 percent to P1.17 per share.
With their simplified investment process and mandated dividend payouts, REITs present a practical way for small-scale investors to participate in the growth of income-generating real estate assets, Juan Martin Buñag, Systembrand Group’s representative in Madrid, said.
Buñag, who is also managing director of Investor Relations Global (IRG), said that REITs allow retail investors, especially OFWs, to earn regular income through dividends while gaining exposure to a diversified portfolio of assets.
These range from residential condominiums and high-rise office buildings to hotels, malls, warehouses and export processing zones.
Investors become part owners of these properties without needing to purchase them outright, benefiting from the income they generate, Buñag said.
Buñag said that OFW participation in REITs aligns with the PSE’s broader push to democratize access to the stock market.
PSE president and CEO Ramon Monzon earlier cited the need to attract overseas Filipinos to invest in domestic securities, saying that only a small percentage of them hold stock market accounts.
Systembrand Group is pushing to engage overseas markets and empower OFWs as long-term participants in the Philippine capital market through the group’s Europe-based initiative for engaging overseas markets called Conectando Filipinas.
Conectando Filipinas estimates that if just 14,000 of the 182,191 OFWs in Europe invested 20 percent, or $60, of their monthly $300 remittances, the resulting trade value could reach $840,000, or approximately P42 million, from new investors.
Such potential underscores the importance of sustained engagement, according to the Systembrand Group.
Buñag said that discussions, events and roadshows with overseas Filipinos would help increase global interest in Philippine capital markets and attract more foreign capital.