REIT Market: Why Executives Are Bullish on Its Future Growth (2025)

 

Executives Bullish on the Philippine REIT Market

The Future of the Philippine REIT Market

The Philippine REIT market is gaining momentum, with new real estate investment trust (REIT) IPOs expected soon. Top executives are optimistic about its growth, positioning the country as a key player in the region.

At a Securities and Exchange Commission (SEC) forum, industry leaders highlighted the potential for more REIT listings in the Philippine REIT market. The country has already launched five successful REIT IPOs, demonstrating strong investor interest despite economic challenges.

Philippine REITs: A Growing Sector

Currently, five REITs are listed in the Philippine REIT market:

• AREIT, Inc.
• DDMP REIT, Inc.
• Filinvest REIT Corp. (FILREIT)
• RL Commercial REIT, Inc. (RCR)
• MREIT, Inc.

“These IPOs happened at the height of the pandemic. Imagine their potential beyond the crisis,” said AREIT President and CEO Carol T. Mills.

Growth of the Philippine REIT Sector

 

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“We were counting… there’s probably going to be a total of maybe five or six more REITs that will probably be launched in the next couple of months or years, and that’s just the large-sized REITs,” said MREIT, Inc. President and Chief Executive Officer Kevin Andrew L. Tan.

Currently, the Philippine REIT industry features five listed companies:

• AREIT, Inc.
• DDMP REIT, Inc.
• Filinvest REIT Corp. (FILREIT)
• RL Commercial REIT, Inc. (RCR)
• MREIT

All five successfully launched their REIT IPOs during the pandemic, with AREIT leading the way in August 2020.

“This happened [at] the height of the pandemic. You can just imagine what potential it has beyond the pandemic,” said AREIT President and CEO Carol T. Mills.

The Office Sector and Growth Potential

The portfolios of these listed REITs focus primarily on the office sector.

“With the five REIT IPOs, we have accumulated a floor area of about a million square meters (sq.m.), but there’s over about nine million sq.m. of office spaces right now in this industry. So, you can imagine the growth potential of the office segment alone,” added Mr. Tan.

As the Philippine REIT market matures, many listed firms are expanding their portfolios:

• AREIT has added new properties to its holdings.
• Filinvest REIT, MREIT, and RCR have announced plans to inject new assets in the coming months or years.
• FILREIT Treasurer and Chief Finance Officer Ana Venus A. Mejia emphasized that “future asset infusions will actually add to the liquidity and size of the REIT.”

Emerging Opportunities in the Philippine REIT Industry

Beyond office spaces, new REIT issuances from other sectors may further drive growth. These include:

• Hospitality (hotels, resorts)
• Retail (malls)
• Logistics hubs
• Infrastructure
• Renewable energy (solar farms, among others)

The SEC recently approved the first energy-related REIT, Citicore Energy REIT Corp., marking a significant development in the Philippine REIT market.

Meanwhile, DoubleDragon Properties Corp. and Jollibee Foods Corp. are planning to introduce the country’s first industrial REIT next year through CentralHub Industrial Centers, Inc.

Attracting More Investors

Executives highlighted the need for a more established Philippine REIT market to attract foreign investors.

“I think foreign inflows have been a bit hesitant at the beginning because it’s such a new market, but the more stable it is and the better performing the Philippine REITs will be, the more likely [foreign investors] will invest,” said DDMP REIT Fund Managers, Inc. President and CEO Hannah H. Yulo-Luccini.

Additionally, the rise of the Philippine REIT market has given more Filipinos an opportunity to learn about investing, particularly during the pandemic.

“All this talk about REITs has created this wave of allowing more Filipinos to improve their financial literacy, understand the art of investing, and become more informed about what they’re getting into,” said RCR President and Chief Executive Officer Jericho P. Go.

Foreign Investment and Financial Literacy

Executives emphasized the importance of establishing a stable REIT market in the Philippines to attract foreign investors. “Global investors were hesitant at first, but as the market matures, we expect increased foreign capital inflows,” said DDMP REIT Fund Managers, Inc. President and CEO Hannah H. Yulo-Luccini.

Beyond investment, the rise of REITs has helped improve financial literacy among Filipinos, especially during the pandemic. “This wave of REIT discussions has allowed more Filipinos to understand investing and financial management,” said RCR CEO Jericho P. Go.

Final Thoughts

The Philippine REIT market continues to expand, presenting new opportunities for investors. As more companies launch REIT IPOs, the sector is expected to drive economic growth and financial inclusion. Whether you’re a first-time investor or an experienced trader, now is an excellent time to explore REIT investments in the Philippines.

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