Proposed changes to Real Estate Investment Trust (REIT) rules could unlock a new pipeline of billion-peso offerings from large infrastructure operators, Investment & Capital Corporation of the Philippines (ICCP) said Tuesday.
ICCP President Manny Ocampo said the planned amendments by the Securities and Exchange Commission (SEC) would allow tollway operators, water concessionaires, fiber optic networks, cell tower companies and data center developers to raise capital through REIT listings.
These infrastructure assets typically possess the scale and long-term cash flows required for multibillion-peso offerings once issuers complete asset preparation and valuation, he said.
The regulatory shift coincides with expectations of easing interest rates, a combination Ocampo said could encourage more issuers to tap the market.
He noted that REITs are primarily a dividend story, and lower interest rates reduce the pressure on issuers to offer elevated yields, making public listings a more attractive capital-raising option.
The local REIT market expanded in 2020 and 2021 when lower interest rates drove a wave of listings. Ocampo said the policy direction of the Bangko Sentral ng Pilipinas would be a key factor, with the possibility of further rate cuts into 2026 potentially creating a favorable window for large-scale infrastructure REITs.
Despite the supportive regulatory and macroeconomic backdrop, Ocampo cautioned that actual listings would remain dependent on issuer readiness, asset valuations and broader market conditions.
