COMPANIES need to explore Real Estate Investment Trust (REIT) offerings to broaden the levels of financial inclusion in the economy, Finance Secretary Benjamin E. Diokno said.
“As we embark on the monumental task of revitalizing the economy, I call on our partners in the private sector to come up with more REIT offerings involving a wider variety of assets, especially from renewable energy sources,” he said in a statement.
The Department of Finance (DoF) estimates that as of July, P93.3 billion in capital was raised from eight REIT offerings. Total capitalization is estimated at P228.5 billion.
“Individual investors comprise the vast majority of REIT investors at 98% — demonstrating REITs’ potential to be a major driver of financial inclusion,” Mr. Diokno said.
Mr. Diokno said the government is also pushing for the passage of a Real Property Valuation and Assessment Reform law.
The bill is currently awaiting second reading at the Senate. It seeks to promote the development and maintenance of a fair and nationally consistent real property valuation system based on internationally accepted valuation standards, concepts, principles, and practices.
“The measure will also empower local government units (LGUs) by enhancing their capacity to generate revenue from real property,” the DoF added.
Mr. Diokno said that REIT investments will “fuel economic recovery and drive infrastructure modernization, create more business opportunities, and invigorate the Philippine capital market.”
The first REIT listed on the Philippine Stock Exchange in 2020. — Luisa Maria Jacinta C. Jocson
