GT Capital Holdings, the listed holding firm of a Philippine conglomerate, has confirmed to the local stock exchange that it is considering launching a real estate investment trust (Reit).

In a disclosure to the Philippine Stock Exchange, GT Capital says that while it is “open to the possibility of launching and listing its own Reit in the future”, it is waiting for the right conditions to do so. This includes waiting for Federal Land, GT Capital’s real estate arm, to “ramp up recurring income”.

Despite not providing the PSE with a concrete timeline for the launch of its Reit, GT Capital earlier told local reporters that it is “always open to possibilities”.

“Just like any conglomerate, we want to diversify and Reits are one vehicle towards that end. If conditions are right, [and] we are able to develop more on the rental side, then we will definitely consider that,” said Jose Crisol, senior vice-president and head of investor relations, strategic planning and corporate communications, at GT Capital. 

In 2023, the company saw its core net income grow 82% to a record high of 28.8 billion pesos (US$488.86 million), from just 15.9 billion pesos in the previous year. 

Contributing to GT Capital’s record-breaking year were its banking, automotive and real estate arms. Metropolitan Bank & Trust Company saw its net earnings improve to 42.2 billion pesos, while Toyota Motor Philippines recorded 13.8 billion pesos and Federal Land posted 2.1 billion pesos in net profits.

While the Philippines’ Reit market is not as robust as those of its Asean neighbours such as Singapore and Malaysia, it could be gaining more institutional investors soon. Earlier in June, the Social Security System (SSS), the state-run pension for private employees, announced that it is looking to ramp up investments in Reits, in light of improving market conditions and expected monetary policy easing.

“We envision a promising future for the Philippine Reit sector, which could potentially become a major contributor to the capital market,” says Ernesto Francisco, acting head of the investment sector at SSS.

At present, the pension fund has some 6 billion pesos, or about 5% of its equity spread, invested in nearly all Reits currently available in the country.