MANILA - Ayala Land's official real estate investment trust listing on Thursday was "timely" as it signaled the confidence in the country's economy and resiliency despite the on-going coronavirus pandemic, Finance Secretary Carlos Dominguez III said.

"This public offering is a strong vote of confidence in our good economic prospects and in the resiliency of many of our industry sectors," Dominguez said in a statement.

REITs investments will "democratize wealth by opening access to thousands of small investors wanting to be shareholders in secure and profitable real estate projects," he said.

AREIT closed lower at P24.90, down 7.78 percent from its offer price of P27. The benchmark PSE Index was up 1.71 percent at 6,097.78.

"AREIT is a big chunk of the market volume today. It opened flat but it looks ok, it’s stable at its opening price because the same with its listing price. If you’re a foreign investor and interest rates are practically zero, this provides yields of between 4 and a half and 5 percent, this gives a good alternative to that," said Miguel Agarao, vice president at PhilEquity.

The initial public offering aims to raise P13.6 billion by offering 456.88 million in primary and secondary shares, with an over allotment of 45.69 million shares.

Real estate investment funds give the public more options to engage in property investments.

REITs also has a "positive multiplier effect" due to enhanced economic activity, Dominguez said, adding that it could also boost the government's Build, Build, Build program.

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