VITRO REIT Targets Year-End IPO Amid Rising Interest Rates and Market Uncertainty

 

PLDT Inc. is maintaining its year-end target for the initial public offering (IPO) of VITRO REIT, even as rising interest rates and ongoing negotiations with institutional investors threaten to delay the planned listing.

PLDT President and CEO Manuel V. Pangilinan reaffirmed the company's intention to push through with the offering before the end of 2026, although the final schedule will depend on market conditions and investor demand.

The company is seeking to proceed with the IPO this year, Pangilinan told The Philippine STAR, while acknowledging the possibility of a later launch.

However, a source familiar with the transaction indicated that the offering could be moved to a later date, depending on the strength of the order book and prevailing interest rates.

Higher borrowing costs and government bond yields present additional challenges for REIT offerings. Since REITs are generally valued against government securities, rising yields can make their dividend returns less attractive to investors.

VITRO REIT IPO Faces Delays

VITRO REIT, a wholly owned subsidiary of PLDT's ePLDT Inc., initially planned to list on the Philippine Stock Exchange (PSE) on October 12. However, the timetable has since been pushed back as the company works to secure cornerstone investors.

PSE President and CEO Ramon Monzon previously confirmed the delay in an interview with Bloomberg TV, citing ongoing negotiations with major investors.

The proposed P24.2-billion IPO would involve the sale of 1.91 billion secondary common shares at an indicative price of P11 each, alongside an overallotment option covering an additional 286.96 million shares.

VITRO REIT submitted its registration statement and REIT plan to the Securities and Exchange Commission (SEC) in June.

Once completed, the offering would introduce the Philippines' first digital infrastructure REIT, providing investors with an opportunity to gain exposure to income-generating data centers and related infrastructure.

Revised REIT Rules Open Doors for Digital Infrastructure

The planned offering follows amendments to the implementing rules of the Real Estate Investment Trust Act of 2009 under SEC Memorandum Circular No. 1, Series of 2026.

The revised regulations expanded the range of eligible assets to include properties that generate recurring and predictable income. These now encompass digital infrastructure, including data centers and information and communications technology facilities.

The regulatory changes have created opportunities for companies operating infrastructure assets to explore the capital markets through REIT structures.

Monzon said the updated framework has already generated interest in new listings, including VITRO REIT. He also noted that toll road operators have expressed interest in taking their consolidated operations public.

Despite the expanded investment opportunities, Monzon cautioned that elevated interest rates could slow the pace of future REIT offerings. Investors may favor alternative instruments, such as preferred shares, if they provide more competitive yields.

Under Philippine regulations, REITs are required to distribute at least 90% of their distributable income as dividends, making their returns particularly sensitive to changes in interest rates.

Two Other IPOs Expected Before Year-End

VITRO REIT is among three companies preparing to enter the Philippine stock market before the end of 2026, alongside Mynt Inc. and Cebu-based Aznar Shipping Corp.

Mynt, the parent company of GCash, is moving forward with an IPO that could become the largest in Philippine history. Its offering period is scheduled for October 6