PSE approves listing rules on REIT

The Philippine Stock Exchange approved the listing rules for Real Estate Investment Trusts to broaden its product offerings. “We are optimistic that the launch of REITs in the Philippines will generate significant interest from investors, both here and abroad, as real estate prospects are looking good given that the economic recovery is expected to promote commercial activity and restore investor confidence," Val Antonio B. Suarez, the PSE chief operating officer, said in a statement Friday. “The retail property market is seen to benefit from the low inflation that will keep the prices of goods stable and keep the patronage of retail malls steady," Suarez said. The REIT listing rules would have to be approved by the Securities and Exchange Commission. REITs are companies that own and operate income-generating, real estate assets that include offices, apartment buildings, hotels, warehouses, shopping centers, and highways. “The residential property market shall also remain upbeat due to the steady increase in remittances of overseas Filipino workers, which shall increase demand for residential properties by OFW families," Suarez said . The REIT listing rules are aligned with Republic Act. No. 9856, or the REIT Act of 2009, and its implementing rules and regulations issued by the SEC. Under the PSE rules, a REIT must be a stock corporation established in accord with the Philippine Corporation Code for the purpose of owning income-generating, real estate assets. It must also have a policy of distributing annually at least 90 percent of its distributable income as dividends to shareholders. “The current economic conditions coupled with the appropriate legal and regulatory framework in place creates a very conducive environment for the launching and introduction of REITs in the Philippine market," Suarez said. “The launching of REITs in the Philippines is expected to further develop the real estate industry by releasing capital into land and buildings, increasing productivity and generating jobs," Suarez added. Companies that earlier expressed interest to participate in the REIT scheme were Ayala Land Inc., SM Prime Holdings Inc., and Robinsons Land Corp. —VS, GMANews.TV