MANILA, Philippines - The Securities and Exchange Commission has approved the Philippine Stock Exchange's listing rules for real estate investment trusts (REITs).
The approved listing rules, which are aligned with Republic Act No. 9856, otherwise known as the REIT Act of 2009, will take effect starting October 8, 2010.
Under the approved PSE rules, a REIT must be a stock corporation established in accordance with the Philippine Corporation Code for the purpose of owning income-generating real estate assets. It must also have a dividend policy of distributing annually at least 90% of its distributable income as dividends to shareholders.
A REIT must be a public company upon and after listing. To be considered as such, it must have at least 1,000 public shareholders each owning at least 50 shares of any class of shares, and who, in aggregate, own at least one-third of the outstanding capital stock.
A REIT must also have a minimum paid-up capital of P300 million. At least 75% of the deposited property of the REIT must be invested in income-generating real estate.
The REIT Act of 2009 took effect on February 9, 2010. It provides tax incentives to REITs and their investors.
Among the companies that earlier expressed interest to offer REITs are Ayala Land Inc., SM Prime Holdings Inc., and Robinsons Land Corp.