Villar group's VistaREIT lists on PSE; sees 'giant' dividend yield in 2022, 2023

Jessica Fenol, ABS-CBN News

Posted at Jun 15 2022 11:23 AM | Updated as of Jun 15 2022 12:00 PM

MANILA - The Villar group's VistaREIT Inc on Wednesday listed on the Philippine Stock Exchange while projecting one of the highest dividend yields in its asset class. 

VistaREIT is sponsored by Villar-led companies including Masterpiece Asia Properties, Inc., Manuela Corporation, Vista Residences, Inc., Crown Asia Properties, Inc., and Communities Pampanga, Inc., filing with the Securities and Exchange Commission said. 

It has a portfolio of 10 community malls and 2 Philippine Economic Zone Authority (PEZA) registered office buildings, VREIT president and CEO Manuel Paolo Villar said during the listing ceremony.

The company has a total gross leasable asset of 256,404 square meters.

Villar said the company offers a mall experience at par with the world. Its mall businesses have also proven to be resilient during the pandemic.

"We are optimistic of the prospect of a reinvigorated economy with the easing of restrictions," Villar said.

Proceeds of the initial public offering of P4.8 billion will be used to invest in 12 high-rise and medium-rise mixed-use condominiums and 5 mixed-use development, the Philippine Stock Exchange said.

Although smaller in terms of capital raised, its dividend yield "stands out as a giant", estimated to be at 8.25 percent in 2022 and 8.99 percent in 2023, PSE president Ramon Monzon said during the listing ceremony.

The Villar Group is led by the country's richest man, tycoon Manny Villar. VistaREIT is the group's 6th listed company, Monzon said with 2 more in the pipeline.

CORE ASSET CLASS

With the inclusion of VistaREIT, the total capital raised by the 7 listed REIT companies since August 2020 has exceeded P90 billion, Monzon said.

"When the first REIT was listed in the PSE last August 2020, I considered REITs then as an alternative asset class… However, the 6 REITS that have listed so far in the PSE in the last 22 months have generated solid enough returns that I no longer view REITS as an alternative class but as a core asset class," he said.

Other REITs listed on the stock exchange include Ayala Land's AREIT, DoubleDragon's DDMP, Megaworld's MREIT, Filinvest Land's FILREIT, Citicore's CREIT and Robinsons Land Corp's RL Commercial REIT.

Real estate investment trust (REIT) is a new investment instrument that allows both small and large investors to earn dividends from real estate assets.

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