The government’s proposed amendments allowing infrastructure assets into the Real Estate Investment Trust (REIT) framework, combined with a softer interest-rate environment, could open the door for a fresh wave of REIT listings, industry experts say.

Investment & Capital Corporation of the Philippines (ICCP) said Tuesday the changes could pave the way for potential billion-peso REIT offers from tollway operators, water concessionaires, fiber optic networks, cell towers, and data-center developers once issuers are ready with assets for public markets.

Timing of policy shift crucial

ICCP president Manny Ocampo said the timing of the policy shift is crucial.

“It works well for REITs,” Ocampo said. “If the interest rates come down, then it does well for REITs, because issuers would be encouraged to come to market as they will not have to pay very high dividend yields, for example. REITs are a dividend story at the end of the day.”

Ocampo drew parallels to the REIT market expansion seen in 2020 and 2021, when relatively low interest rates helped drive a surge of listings.

Lower rates reduce pressure on issuers to offer elevated dividend yields, making public offerings more viable and attractive.

ICCP has actively leveraged these market windows, recently winning “Best IPO” at The Asset Triple A Awards for Sustainable Finance 2025 and three major honors — including Deal of the Year — at the IHAP Awards 2025.

BSP policy trajectory a key factor

Looking ahead, Ocampo flagged the Bangko Sentral ng Pilipinas’ policy trajectory as a key factor. He noted that a potential rate cut in 2026 could create a favorable environment for this new batch of infrastructure REITs.

Still, he cautioned that actual listings will ultimately hinge on issuer readiness, asset valuation, and broader market conditions.