Top 7 Reasons Why You Should Invest in DoubleDragon REIT (DDMPR)

If you like the profit potential and benefits of REITs (Real Estate Investment Trust), you should not miss these top 7 reasons why you should invest in DoubleDragon Properties REIT (DDMPR). It is a REIT from DoubleDragon Properties Corporation, a fast-growing real estate developer in the Philippines.

I always admire Edgar Sia II’s leadership. He’s the man behind the creation of Mang Inasal and the chairman and CEO of DoubleDragon Properties. Sia started from a humble beginning. He is now among the wealthiest persons in the Philippines in 2021 and one of the youngest of them all.

The launch of REIT in the Philippines was quite successful, although there was a pandemic. After the offering of Ayala Land REIT, DoubleDragon REIT (DDMPR) is the second REIT in the Philippines.

I’m one of those investors who are interested in investing in DDMP REIT. Now, I’m sharing here my own insights into why I want to invest in DDMPR.

What is DoubleDragon Properties REIT?

DoubleDragon Properties REIT is a Real Estate Investment Trust offered by DoubleDragon Properties Corp. It is the second REIT available and will listed on the Philippine Stock Exchange. Its IPO began on March 10, 2021, until March 16, 2021, with an offering of P2.25 per share. The listing on the PSE is expected to be on March 23 under the ticker DDMPR.

7 Reasons Why You Should Invest in DoubleDragon REIT

1. Affordability

DDMP REIT Initial Public Offering is set at P2.25 per share. It’s a very attractive price, especially for retail investors, because it’s very affordable. IPO’s offering for a minimum subscription is P2,250.

I think it’s too early to say whether that price would justify its valuation because when it comes to this REIT, I always look for the long-term potential and the recurring income than the current price of the REIT on the stock exchange.

You would understand better what I mean here as you read the following parts below.

2. Regular Dividend Payouts

One of the unique benefits of REITs vs. stocks is the regular dividend payouts. REITs listed on the Philippine Stock Exchange are required by law to distribute 90% of their Distributable Income as dividends to its shareholders.

That is per SEC’s Rule 4 Section 4 Implementing Rules and Regulations on REIT. As an investor of DoubleDragon REIT, you will earn dividend income from your shares of your REIT as long as the company remains profitable. You will also earn profit when the value of DDMPR grows over time.

With the DDMPR IPO share price of 2.25 per share, the projected dividend yield is 5.07% for 2021 and 2022.

3. Expert Management

Real estate experts manage the Asset Under Management (AUM) of REIT. With DoubleDragon Properties, they already have a solid track record.

I also admire the brilliant leadership of DoubleDragon Properties Corp. Chairman and CEO Edgar Sia II. I like his strategy. He’s the founder of Mang Inasal, which Jollibee Foods Corporation later acquired.

Sia’s MerryMart IPO last year skyrocketed by 50% amid the pandemic. Will their REIT repeat history, or will it impress investors even more?

4. DoubleDragon Properties are Well-positioned

The REIT’s properties are located in a prime location of the Pasay Central Business District’s fast-rising hub. Just a few steps to SM Mall of Asia, Entertainment City, World Trade Center, PICC, and other high traffic commercial centers. The properties are also near LRT and MRT stations and a few minutes away from the NAIA International Airport.

The premier location of their properties will add more advantages for continuous and full occupancy as much as rental income. Besides, the value of the prime double corner 4.75-hectare block is titled land ownership. Its value will appreciate every year.

5. Growing Market Value and Rental Revenue

The Philippines has a strong economic outlook. With its young demographics and improving railways and transportation system, we are confident that DoubleDragon Properties REIT will benefit from these factors.

As the Chairman and CEO of DoubleDragon said, “When there is underlying titled land ownership included in the REIT shares, even a hundred years from now, it should keep its hard value intact. We see DDMP shares as a ‘Pamana Stock’ that even our future grandchildren will be happy to inherit.”

6. Additional Asset Class Allocation

When you invest in REITs, you allocate a part of your portfolio to real estate property businesses. It will add more diversification to your investments.

The real estate sector always has a robust potential. If you have stocks, having a REIT like DDMPR is a great additional asset on your portfolio.

7. Liquidity

Unlike getting a condo, dealing with long contracts, and paying for mortgages, investing in REIT like DDMPR is more convenient. You can get in and out of your real estate investment quicker on any trading day as these assets are traded on the stock exchange.

why invest double dragon reit

How to Invest in DoubleDragon REIT?

  1. Open an online trading account
  2. Give your consent to trade REIT
  3. Subscribe for DDMPR IPO (from March 10-16)
  4. Find the ticket DDMPR on its listing date (expected to be on March 23)
  5. Buy your shares of DoubeDragon REIT

Other Investment Guides:

Disclaimer: This article is for information purposes only and should not be considered as a professional advice or endorsement of a particular investment. All investments have risks. Risk only the capital you’re not afraid to lose. Always do your own research before investing.

About Fehl Dungo

Founder of DailyPik, entrepreneur, and tech investor. I have a Degree in Accountancy and a background in Finance. I analyze stocks everyday. START Investing HERE Connect with me on Facebook

4 thoughts on “Top 7 Reasons Why You Should Invest in DoubleDragon REIT (DDMPR)”

  1. Dear Dungo,

    I appreciate your recommendation. Also it’ll be best, if we know the gov rules. It’s more informative and profitable business to investment in stock market in good sense.

    Moreover, I suggest to inform me what about trade stock alerts. Hope you will get back soon.

    Thanks best wishes.

    Reply
  2. Hi Ms. Fehl,

    Thank you for sharing your positive insights regarding REIT DDMPR. This is really a very attractive stock to invest.

    But what is your take on DDMPR’s risk exposure of having more than half (~65%) of its total GLA leased is taken up by gaming related BPOs and POGOs? Is it not a major concern since any unfavorable development in the industry will cause a significant disruption on the company’s operation?

    Thank you & Stay safe always.

    Regards,
    Louie

    Reply
    • Hi Louie 🙂 As long as they are licensed POGO, legal, and comply with the Philippine law, rules, and regulations, I’m not against it. Besides, POGOs contribute huge revenue to the government and also to real estate properties.

      Reply

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