REITs' listings to improve stock trading, says PSE

The Philippine Stock Exchange (PSE) expects more vibrant trading sessions once the proposed public listing of Real Estate Investment Trusts (REIT) is approved. REITs are companies that own and operate income-generating real estate assets, the PSE said in a statement Wednesday. “REIT offerings would enable participation in the real estate sector and create investment diversification opportunities for all investors," PSE chairman Hans B. Sicat said. The proposed REIT listing rules is in line with the implementing rules and regulations of the REIT Act of 2009 or Republic Act. No. 9856 to be issued by the SEC. The PSE noted that infrastructure REITs in Singapore and the United States have played a major role in funding government infrastructure projects. The most common REITs are engaged in retail, commercial and industrial projects. “We expect REIT listing applications to be filed once we finalize the proposed REIT listing rules and secure the approval of the SEC (Securities and Exchange Commission). We are optimistic that REITs would further promote the growth and development of the capital markets," Val Antonio B. Suarez, the exchange’s COO, said in the statement. The PSE has posted the REIT listing rules on its website, www.pse.com.ph for the comment after which the exchange will secure the approval of its board of directors and the SEC for the proposed rules. The REIT Act took effect on Feb. 9, 2010 as the regulatory and tax framework for REITs including tax incentives. However, to enjoy these incentives, a REIT must be listed in a stock exchange giving out at least 90 percent of its distributable income to shareholders.—VS, GMANews.TV