REIT rule changes seen to spur listings, asset diversification

THE SECURITIES and Exchange Commission’s (SEC) 2026 amendments to the real estate investment trust (REIT) rules could encourage more listings by expanding eligible assets and easing capital recycling, according to analysts.

- By Alexandria Grace C. Magno

“For existing listed REITs, this provides a clearer regulatory basis to diversify future asset infusions beyond conventional office or retail properties, supporting portfolio resilience,” F. Yap Securities Investment Analyst Marky Carunungan said in a Viber message.

“For potential issuers, the amendments make REITs a more practical capital-recycling tool, allowing companies to unlock value from stabilized assets while retaining operational control. These changes should support a deeper and more active REIT capital market over time,” he added.

In a statement on Friday, the SEC said the amendments are aligned with the objectives of the REIT Act by expanding eligible income-generating assets and allowing unlisted special purpose vehicles (SPVs) and incorporated joint ventures (JVs), consistent with global practices.

Under SEC Memorandum Circular (MC) No. 1, Series of 2026, REITs may own income-generating real estate directly or indirectly. For indirect ownership, a REIT may hold shares in an unlisted SPV formed primarily to own real estate, provided it owns at least two-thirds of the SPV’s voting stock, including through incorporated JVs.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the amendments address key regulatory constraints related to eligible assets, reinvestment of proceeds, and indirect property ownership.

“One important change is the expansion and diversification of real estate that can be packaged into a REIT, such as airports, toll roads, telco towers, broadband fiber networks, and data centers,” Mr. Colet said in a Viber message.

“With these amendments plus another interest rate cut, we expect renewed preparations for REIT IPOs and the launch of such offerings starting this year,” he added.