The Securities and Exchange Commission (SEC) will broaden the definition of income-generating assets eligible for Real Estate Investment Trust (REIT) classification to encourage more property listings.
SEC chairman Francis E. Lim highlighted plans to include assets like toll roads, power plants, and cell towers—immovable properties generating regular income—even if the company does not own the land but holds operational rights. “These should be considered REIT assets,” Lim said.
The move builds on the 2009 REIT Act, which allows the SEC to define qualifying real estate assets. Since the first REIT listing in 2020 by Ayala Land Inc.-backed Areit Inc., the market has steadily grown, with several companies following suit.
This regulatory update aims to boost REIT market expansion by welcoming a wider range of income-generating properties.
