DDMPR debuts at stock market

MANILA, Philippines — DDMP REIT Inc. (DDMPR), the real estate investment trust company of tycoon Edgar “Injap” Sia, made its debut at the Philippine Stock Exchange (PSE) yesterday,  closing at its offer price of P2.25 per share.

While Sia’s stocks usually sizzle in the market, yesterday’s DDMP debut was still a feat given the prevailing uncertainty and volatility in the market brought about by COVID-19 related concerns.

Yesterday’s listing of DDMP REIT makes the company the second real estate investment trust (REIT) to list on the local bourse after Ayala Land Inc.’s AREIT Inc. last year.

DDMP offered up to 5.94 billion secondary common shares owned by DoubleDragon and joint venture partners Benedict Yujuico and Teresita Yujuico.

At present, DDMP REIT’s portfolio includes six office towers with retail components within DD Meridian Park in Pasay City. The company’s leasing spaces cater to a mix of tenants, such as business process outsourcing companies, government agencies, and corporate locators.

In his message during the opening ceremony yesterday, Sia said the  company started the development of the prime commercial property along EDSA and Macapagal Avenue in the Bay Area in Pasay City, Metro Manila about six years ago in 2015, and in 2017 the first tower was completed. The first four towers were inaugurated about three years ago in May 2018.

“Now the first six towers are already fully completed and occupied, and most importantly today we mark a milestone for the future,” Sia said.

Sia touted the DDMP REIT Basket as a  “Pamana Stock.”

“While pamana is for the succeeding generations, you still get to enjoy the quarterly cash dividend benefits of your DDMP investment as you temporarily hold it in behalf of your next generation. Based on DDMPR’s regular cash dividend cycle, the next cash dividend is up for declaration in the next three weeks from today,” Sia said.

As a REIT company, DDMP REIT shall distribute at least 90 percent of its annual distributable income as dividends.

The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards. It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of the sale.

Sia said the majority of the over 50,000 DDMP IPO subscribers were provincial investors who normally just park their passive funds in bank time deposits which only earn them about one percent.

“While as stated in the REIT Plan, at P2.25 per share, the DDMP REIT’s projected yield this year is over five percent,” he said.

Finance Secretary Carlos Dominguez welcomed the maiden listing of DDMP, saying REITs will help drive infrastructure investments and more opportunities in the country.

DDMP tapped Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Ltd., and PNB Capital and Investment Corp. as joint global coordinators for the  offering.