The Philippine Securities and Exchange Commission has released for public comment proposed amendments to its rules for real estate investment trusts (REITs) aimed at expanding opportunities for issuers and investors. The draft would broaden the range of income-generating real estate assets that can form part of a REIT portfolio, give sponsors more time and flexibility to reinvest listing proceeds, and relax compliance with minimum public ownership in specified circumstances. The proposal would expand the definition of income-generating real estate assets to include direct or indirect ownership through a shareholding in an unlisted special purpose vehicle wholly owned by the REIT and primarily constituted to hold or own real estate. It would also capture real properties with regular streams of income or recurring and predictable cash inflows derived from leasing or similar arrangements, including assets such as transportation, information and communications technology, and energy infrastructure rental properties, parking lots, malls, warehouses or storage facilities, immovable fixtures and machinery, and real rights over properties such as usufruct, easements and registered leases. The draft extends the utilization period for reinvestment proceeds to two years from receipt, from one year previously, and clarifies that reinvestment in the Philippines may include equity investments, extending loans, purchasing or repaying debt instruments in relation to real estate or infrastructure projects (government or privately initiated). For minimum public ownership, it would allow a temporary dip when additional shares are issued to the sponsor/promoter or affiliates in exchange for income-generating real estate or real rights over immovable property, subject to Commission and Exchange approval, a restoration plan and timetable, and public disclosure of the breach and remedial plan. Comments on the draft amendments are open until December 3.
Philippine Securities and Exchange Commission 2025-11-20
Philippine Securities and Exchange Commission launches consultation on REIT rule changes including broader eligible assets and a two-year reinvestment period
The Philippine Securities and Exchange Commission proposed amendments to REIT rules to broaden asset eligibility and provide more flexibility for reinvestment and public ownership compliance. The draft expands the definition of income-generating assets and extends the reinvestment period to two years. It also allows temporary dips in minimum public ownership under specific conditions, subject to approval and disclosure requirements.