The landmark listing, originally scheduled for the fourth quarter of 2026, could give way to a conventional share sale or a return to PLDT’s earlier plan to bring in a strategic investor, PLDT chair and CEO Manuel V. Pangilinan said on Thursday.
“I think in a way the respite that we got for several months is for us to rethink,” he told reporters during the company's quarterly briefing on Thursday.
The proposed IPO would see PLDT sell up to 49 percent of Vitro REIT, comprising eight operating data centers with nearly 24 megawatts of capacity, while retaining majority ownership.
Rising yields change the equation
Pangilinan said rising government bond yields meant Vitro REIT would have to offer higher dividend returns to attract investors, potentially making the fundraising more expensive than PLDT’s own borrowing costs.
“It’s a yield game. It’s a debt game when you look down at it,” he said.
Real estate investment trusts (REITs) must distribute at least 90 percent of their distributable income as dividends, making yields a key selling point for investors.
Vitro REIT initially targeted a yield of around 6 percent, but rising interest rates have made that less attractive as investors can now earn higher returns elsewhere.
But Pangilinan said PLDT remains keen on raising capital to reduce its debt burden, targeting P20 billion to P25 billion in proceeds, although the REIT was no longer its only option.
“It’s a funny instrument, right? If you stick to the plain vanilla equity raising, then people understand it,” he said.
Strategic investor back in play
Pangilinan said PLDT might return to its earlier plan to bring in a strategic investor, following unsuccessful talks with Japan’s NTT in 2024.
Such an investor could bring more than capital by attracting international customers to Vitro’s facilities.
No immediate funding pressure
PLDT is under no immediate pressure to raise funds, with Pangilinan expecting the company to remain free cash flow positive in 2027 while reducing debt.
“There’s no dire need for funding,” he said.
—Edited by Miguel R. Camus
