SEC issues amended REIT rules to boost capital market

The Securities and Exchange Commission (SEC) has released the amended rules governing real estate investment trusts (REITs) as part of its efforts to further develop the capital market.

- By RICHMOND MERCURIO

To enhance the regulatory framework for REITs to be at par with the country's neighboring regions, the commission has issued Memorandum Circular 1, Series of 2026, which provides amendments to the revised implementing rules and regulations of the REIT Act of 2009.

"We wanted to start the year strong, which is why we spared no effort to make this REIT memorandum circular our first issuance of 2026," SEC chairperson Francis Lim said.

"This signals the commission's priorities for the year and underscores our continuing commitment to deepen the capital market while protecting the interests of the investing public and ensuring sound governance across possible REIT structures," he said.

By establishing a more robust framework for the REIT market, Lim said the SEC is broadening opportunities for participation in real estate investment, helping more Filipinos benefit from long-term wealth creation.

The circular expands the definition of income generating real estate assets by allowing a REIT to directly or indirectly own income-generating real estate through a shareholding in an unlisted special purpose vehicle duly constituted to primarily hold or own real estate and wholly owned or partially owned by the REIT by at least two thirds of its outstanding and voting capital stock.