Analyzing the determinants of stock performance in the Philippine real estate investment trust market: A comparative study with Southeast Asian REITs

• Main Author: Aranas, Jonalyn
• Format: text
• Language: English
• Published: Animo Repository 2024
• Subjects: Stocks—Philippines; Stocks—Southeast Asia; Business; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etdm_finman/13; https://animorepository.dlsu.edu.ph/context/etdm_finman/article/1016/viewcontent/Analyzing_the_determinants_of_stock_performance_in_the_Philippine_copy.pdf
• Institution: De La Salle University

The Real Estate Investment Trust (REIT) is a new asset class introduced in the Philippine securities market in the year 2009. However, the first Philippine REIT was only launched in the year 2020 after its terms were amended. At present, there are eight (8) local REITs in the market. This study provided baseline analysis on the stock performance of Philippine REITs through identification of the internal and external factors affecting its performance with a comparable analysis with its Southeast Asian counterparts. The research applied panel data regression on the REITs' stock return and macroeconomic variables such as GDP growth rate and inflation rate as well as financial ratios such as return on assets, dividend yield, and market capitalization. Results revealed that Philippine REITs performance, represented by stock return, was significantly affected by the changes in GDP and market capitalization while inflation, return on assets, and market capitalization movements had significant effect on the stock return of Southeast Asian REITs. Further, impact of change on the performance of the identified predictors such as GDP growth rate and market capitalization showed the negative effect on Malaysia, Singapore, and Thailand REITs , except for the positive effect on Thailand REITs in the case of market capitalization movement, when compared with the stock performance of Philippine REITs. Keywords: Real Estate Investment Trust (REIT), stock performance, stock return, macroeconomic determinants, financial ratio, stock performance indicator