Investment & Capital Corporation of the Philippines (ICCP) expects a new wave of real estate investment trust listings to reach the local market, driven by proposed regulatory changes and the shifting interest-rate environment.

The Securities and Exchange Commission (SEC) is moving to amend rules to include infrastructure assets within the real estate investment trust (REIT) framework, a move ICCP said could unlock billions of pesos in fresh offerings.

ICCP President Jesus Mariano Ocampo explained that the SEC’s initiative to expand the scope of eligible assets clears the path for tollway operators, water concessionaires, fiber optic networks, and data-center developers to tap the public markets.

These capital-intensive sectors have long sought more efficient ways to recycle capital, and the inclusion of infrastructure under the REIT umbrella provides a structured vehicle to do so. Ocampo noted that the timing of this policy shift is particularly advantageous as it coincides with a global and domestic trend toward more accommodative monetary policy.

The relationship between interest rates and REIT valuations is a primary driver of this optimistic outlook. Ocampo explained that REITs are fundamentally a dividend-driven asset class. When interest rates are high, issuers are forced to offer elevated dividend yields to remain competitive against fixed-income instruments.

As the Bangko Sentral ng Pilipinas moves toward a more easing cycle, the pressure on these yields subsides. This reduction in the cost of equity makes public listings a more viable and attractive capital-raising option for Philippine corporations.

Historical precedents support this view. Ocampo drew parallels to the surge in REIT activity seen in 2020 and 2021, when a low-interest-rate environment successfully encouraged a significant number of issuers to debut on the Philippine Stock Exchange.

Looking toward 2026, the potential for further rate cuts by the central bank could create a favorable window for this new breed of infrastructure-focused REITs.

Despite the positive regulatory and macroeconomic backdrop, Ocampo cautioned that the pace of new listings will ultimately hinge on the internal readiness of issuers and broader market stability. Companies must undergo rigorous asset valuation and preparation before entering the public sphere.

ICCP remains a dominant player in the local capital markets, having recently secured several accolades including Deal of the Year at the IHAP Awards 2025.