The Philippine Stock Exchange (PSE) welcomed the passage of the Real Estate Investment Trust (REIT) Act into law, the fourth landmark legislative reform proposed by the PSE to boost the Philippine capital markets.

PSE President and Chief Executive Officer Francis Lim said he received the notice from the Office of the President that the REIT bill lapsed into law as Republic Act No. 9856 entitled, “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes.”

The REIT law will provide the regulatory and tax framework for REITs, which are companies that own and operate income-producing real estate assets. Shares of these REITs are to be listed on and traded at the PSE.

To encourage investments in REITs, the REIT law provides certain tax incentives to the REIT. However, in order to enjoy these incentives, the REIT must be listed with a stock exchange and annually give out at least 90 percent of its distributable income to shareholders.

“We are extremely grateful to our Congress led by Senator Ed Angara and Congressman Sonny Angara and President Gloria Macapagal Arroyo for making R.A. No. 9856 or the REIT law a reality,” Lim said.