The Philippine Stock Exchange (PSE) Board of Directors has approved the listing rules for real estate investment trusts (REITs) in support of the bourse’s thrust to broaden product offerings to equities investors.

In a statement, the PSE said its REIT listing rules will be endorsed to the Securities and Exchange Commission (SEC) for approval.

“We are optimistic that the launch of REITs in the Philippines will generate significant interest from investors both here and abroad,” said PSE chief operating officer Val Antonio Suarez.

He noted that “real estate prospects are looking good given that the economic recovery is expected to promote commercial activity and restore investor confidence. The retail property market is seen to benefit from the low inflation that will keep the prices of goods stable and keep the patronage of retail malls steady.”

REITs are companies that own and operate income-generating real estate assets which include offices, apartment buildings, hotels, warehouses, shopping centers and highways.

“The residential property market shall also remain upbeat due to the steady increase in remittances of Overseas Filipinos (OF) which shall increase demand for residential properties by OF families,” Suarez added.

The REIT listing rules are aligned with Republic Act. No. 9856, otherwise known as the REIT Act of 2009 and its implementing rules and regulations which were issued by the SEC.

To be admitted for listing, 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.