SEC proposes revisions to REIT rules

The Securities and Exchange Commission (SEC) has issued proposed amendments to the rules on real estate investment trusts (REIT), a move aimed at providing broader opportunities in the capital market for both issuers and investors.

- By RICHMOND MERCURIO

The draft amendments released for public comment by the SEC seek to broaden the list of income-generating real estate assets that may comprise a REIT’s portfolio.

It also aims to provide flexibility for the REIT sponsor in reinvesting proceeds from the listing of the REIT as well as relax the minimum public ownership requirement, among others.

“The proposed reforms will help ensure that the REIT framework remains robust and responsive to evolving market needs, thereby enabling the real estate sector to unlock more capital that will further support their growth and to contribute more to the development of our economy,” SEC chairperson Francis Lim said.