TodayisMonday,March14,2016

RepublicofthePhilippines
SECURITIESANDEXCHANGECOMMISSION
SECBuilding,EDSA,Greenhills
MandaluyongCity
IMPLEMENTINGRULESANDREGULATIONS
OFTHEREALESTATEINVESTMENTTRUST(REIT)ACTOF2009
Pursuant to Section 22 of Republic Act No. 9856, An Act Providing the Legal Framework for Real Estate
InvestmentTrust,thefollowingImplementingRulesandRegulationsareherebypromulgated.
Rule1TitleofRules
TheseRulesshallbereferredtoasthe"ImplementingRulesandRegulationsofRepublicActNo.9856,otherwise
knownastheRealEstateInvestmentTrust(REIT)Actof2009"orthe"REITRules."
Rule2Objectives
TheseRulesarepromulgatedconsistentwiththedeclaredpolicyoftheStatetopromotethedevelopmentofthe
capitalmarket,democratizewealthbybroadeningtheparticipationofFilipinosintheownershipofrealestatein
thePhilippines,usethecapitalmarketasaninstrumenttohelpfinanceanddevelopinfrastructureprojects,and
protecttheinvestingpublic.
The implementation and application of these Rules shall adhere as closely as possible to the attainment of the
foregoingpolicyobjectives.
Rule3DefinitionofTermsUsedintheRules
WhenusedintheseRulesandRegulation,theterm
a."Act"meansRepublicActNo.9856otherwiseknownastheActProvidingtheLegalFrameworkforReal
EstateInvestmentTrust.
b."Adviser"meansalawyer,accountant,auditor,financialorbusinessconsultant,andsuchotherpersons
renderingprofessionaladvisoryservicestoREIT.
c."Affiliate"meansacorporationthatdirectlyorindirectly,throughoneormoreintermediaries,iscontrolled
by,orisunderthecommoncontrolof,anothercorporation,whichtherebybecomesitsparentcorporation.
d."Associate"ofapersonincludes:
i.Anyrelativeofsuchpersonwithinthefourth(4th)degreeofconsanguinityoraffinityand
ii.Anycompanyinwhichhe/sheandhis/herrelativewithinthefourth(4th)degreeofconsanguinityor
affinity,directlyorindirectly,hasaninterestoftwentyfivepercent(25%)ormore.
e."BIR"meanstheBureauofInternalRevenue.
f."BSP"meanstheBangkoSentralngPilipinas.
g."CashEquivalentItems"meansinstrumentsorinvestmentsthatarehighlyliquidandmarketableandare
consideredgoodascash,includingsavingsand/ortimedeposits(pesoorforeigncurrencydenominated)
maintained with any duly licensed universal, commercial or thrift bank that has passed the accreditation
processoftheFundManager.
h. "Code of Corporate Governance" means the Revised Code of Corporate Governance issued by the
Commission on 22 June 2009 and made effective on 15 July 2009 and as may be amended by the
Commission.
i."Commission"or"SEC"meanstheSecuritiesandExchangeCommissionofthePhilippines.

j."ConstitutiveDocuments"meanstheArticlesofIncorporationandByLawsofaREIT.
k. "Control" exists in favor of a parent corporation when it has the power to direct or govern the financial
and operating policies of an enterprise so as to obtain benefits from its activities. Control is presumed to
exist when the parent owns, directly or indirectly, through subsidiaries, more than one half (1/2) of the
voting power of an enterprise, unless, in exceptional circumstances, it can clearly be demonstrated that
suchownershipdoesnotconstitutecontrol.Controlalsoexistsevenwhentheparentownsonehalf(1/2)or
lessofthevotingpowerofanenterprisewhenthereispower:
i.Overmorethanonehalf(1/2)ofthevotingrightsbyvirtueofanagreementwithinvestors
ii. To direct or govern the financial and operating policies of the enterprise under a statute or an
agreement
iii. To appoint or remove the majority of the members of the board of directors or equivalent
governingbodyor
iv.Tocastthemajorityvotesatmeetingsoftheboardofdirectorsorequivalentgoverningbody.
l."CorporationCode"referstoBatasPambansaBilang68,otherwiseknownastheCorporationCodeofthe
Philippines.
m."DepositedProperty"meansthetotalvalueoftheREIT'sassetsreflectingthefairmarketvalueofthe
totalassetsheldbytheREIT.
n. "Distributable Income" means net income as adjusted for unrealized gains and losses/expenses and
impairment losses, and other items in accordance with internationally accepted accounting standards.
DistributableincomeexcludesproceedsfromthesaleoftheREIT'sassetsthatarereinvestedintheREIT
withinone(1)yearfromthedateofthesale.
o."DST"meansDocumentaryStampTaximposedunderTitleVIIoftheNIRC
p. "Exchange" means any entity registered with the Commission as a stock exchange pursuant to the
SecuritiesRegulationCode.
q. "Fund Manager" refers to the person engaged by the REIT to perform such functions enumerated in
theseRules.
r. "Incomegenerating Real Estate" means real property which is held for the purpose of generating a
regularstreamofincomesuchas,butnotlimitedto,rentals,tollfees,user'sfees,ticketsales,parkingfees
andstoragefees.
1 a v v p h i1

s."IndependentDirector"meansadirectorwhohasthequalificationsandnoneofthedisqualificationsof
an independent director as specified in the Securities Regulation Code and its Implementing Rules and
Regulations.
t. "Investible Funds" refers to funds of the REIT that can be placed in investment vehicles other than
incomegeneratingrealestate,asallowedundertheseRules.
u."Investor"meanstheownerofInvestorSecurities.
v."InvestorSecurities"meanssharesofstockissuedbyaREITorderivativesthereof.
w. "Managed Funds" means any arrangement whereby funds are solicited from the investing public and
pooled for the purpose of investing in securities duly registered and/or approved by the appropriate
regulatoryagencyofthegovernmentforinvestmentand/orreinvestmentbytheREIT.
x. "Material Contract" refers to an agreement or arrangement where the amount involved is at least five
percent(5%)oftheDepositedPropertyoftheREITorwhichisnotenteredintointheordinarycourseof
business of the REIT: Provided, however, That the following shall be deemed a Material Contract
regardlessoftheamount:
i.RelatedPartyTransactionsasdefinedintheseRules
ii.AgreementsbetweentheREITandFundManager
iii.AgreementsbetweentheREITandPropertyManager

iv.Agreementsbetweenandamongshareholdersrelatingtothetransferabilityofthesharesofstock
oftheREIT,controloftheREITandvotingrightsoversharesofstockoftheREIT,suchasbutnot
limited to, voting trust agreements, pooling agreements, joint venture agreements, option
agreements,andagreementsgrantingrightsoffirstrefusalorconversionrights
v.AnyacquisitionordispositionofrealestatebytheREIT
vi.ContractsrelatingtoinvestmentsoftheREIT
vii.Anycontractcreatingmortgages,encumbrances,liensorrightsontherealestateoftheREIT
viii.ContractofanynaturethatlimitsthedeclarationordistributionofdividendsbytheREIT
ix. Any contract relating to joint venture, spin off, consolidation or merger, takeover or change in
ControlinvolvingtheREIT
x.Any contract that may be expected to materially affect the market activity and/or the price of the
InvestorSecurities.
y."NetAssetValue"or"NAV"meanstheadjustednetassetvaluereflectingthefairmarketvaluesoftotal
assets and investible funds held by the REIT, less total liabilities. NAV per share shall be computed by
dividingNAVbythetotaloutstandingsharesoftheREIT.
z. "Net Income" means net income as determined under the Philippine Financial Reporting Standards
(PFRS).
aa."NIRC"meanstheNationalInternalRevenueCodeof1997,asamended.
bb. "Overseas Filipino Investor" refers to an individual citizen of the Philippines who is working abroad,
including one who has retained or reacquired his Philippine citizenship under Republic Act No. 9225,
otherwiseknownasthe"CitizenshipRetentionandReacquisitionActof2003".
cc."PAS"meansPhilippineAccountingStandards.
dd."Parent"meansacorporationwhichhascontroloveranothercorporation,directlyorindirectly,through
oneormoreintermediaries.
ee."PFRS"meansPhilippineFinancialReportingStandards.
ff."PrincipalOfficer"meansthechairmanoftheboardofdirectors,president,chiefexecutiveofficer,chief
operating officer, treasurer, chief financial officer, corporate secretary, vice president, executive vice
president, senior vice president, compliance officer, chief accounting officer, chief investment officer and
theirequivalentpositions,includingconsultantswithsimilarrankorposition.
gg."PropertyValue"meansanindependententityengagedbyaREITtovalueitsrealestateinaccordance
withtheseRules.
hh."PrincipalStockholder"meansastockholderwhois,directlyorindirectly,thebeneficialownerofmore
thantenpercent(10%)ofanyclassofInvestorSecuritiesoftheREIT.
ii. "Public Shareholder" means a shareholder of a REIT other than the following persons (nonpublic
shareholders):
i.TheSponsor/PromoteroftheREIT
ii.Adirector,PrincipalOfficerorPrincipalStockholderoftheSponsor/PromoteroftheREIT
iii.Adirector,PrincipalOfficerorPrincipalStockholderoftheREIT
iv. An associate of a director, Principal Officer or Principal Stockholder of the REIT or its
Sponsor/Promoter
v.ARelatedCorporationtotheREIToritsSponsor/Promoterand
vi.AnypersonwhoholdslegaltitletothesharesofstockoftheREITforthebenefitofanotherforthe
purposeofcircumventingtheprovisionsofthisAct.
jj."PropertyManager"referstoaprofessionaladministratorofrealpropertieswhoisengagedbytheREIT
toprovidethepropertymanagementservicesdefinedundertheseRules.

kk. "Real Estate Investment Trust" or "REIT" is a stock corporation established in accordance with the
Corporation Code of the Philippines and the rules and regulations promulgated by the Commission
principallyforthepurposeofowningincomegeneratingrealestateassets.Forpurposesofclarity,aREIT,
althoughdesignatedasa"trust",doesnothavethesametechnicalmeaningas"trust"underexistinglaws
andregulationsbutisusedhereinforthesolepurposeofadoptingtheinternationallyaccepteddescription
ofthecompanyinaccordancewithglobalbestpractices.
ll. "Real Property" shall have the same definition as "Immovable Property" under Article 415 of the Civil
CodeofthePhilippines.Realestate,whenusedinthisAct,shallhavethesamemeaningasrealproperty.
mm."REITPlan"referstotheplan,includingitsamendments,oftheREITregisteredwithandapprovedby
theCommission.
nn."RealEstateRelatedAssets"mean:
i.Debtsecuritiesandlistedsharesissuedbylistedpropertycompaniesor
ii.Otherfundsandassets,includingpersonalproperty,incidentaltotheownershipofrealestate.
oo."RelatedCorporation"meanstheParent,SubsidiaryorAffiliateoftheREIT.
pp."RelatedParty"includes:
i.Adirector,PrincipalOfficerorPrincipalStockholderoftheREITorassociateofsuchpersons
ii.TheSponsor/PromoteroftheREIT
iii.TheFundManageroftheREIT
iv.TheAdviseroftheREIT
v.ThePropertyManageroftheREIT
vi.A director, Principal Shareholder or Principal Officer of the Sponsor/Promoter of the REIT Fund
ManagerorPropertyManager,orassociateofanysuchpersonsand
vii.RelatedCorporationtotheREIT,theFundManagerorthePropertyManager.
qq. "Securities Regulation Code" or "SRC" refers to Republic Act No. 8799, otherwise known as the
SecuritiesRegulationCodeof2000,anditsImplementingRulesandRegulationsasamended.
rr. "Sponsor/Promoter" means any person who, acting alone or in conjunction with one or more other
persons,directlyorindirectly,contributescashorpropertyinestablishingaREIT.
ss."Subsidiary"meansacorporationmorethanfiftypercent(50%)ofthevotingstockofwhichisownedor
controlled,directlyorindirectly,throughoneormoreintermediaries,byanothercorporation,whichthereby
becomesitsparentcorporation.
tt. "Synthetic Investment Products" are derivatives and other securities created exclusively out of one or
more financial instruments to simulate the returns of the underlying assets or indices of asset values,
including, but not limited to warrants, options, interest rate derivatives, currency derivatives, equity
derivatives and credit derivatives such as creditlinked notes, collateralized debt obligations, total return
swaps,creditspreadoptionsandcreditdefaultoptions.
uu."TaxableNetIncome"meansthepertinentitemsofgrossincomespecifiedinSection32oftheNIRC,
less all allowable deductions enumerated in Section 34, of the NIRC, less the dividends distributed by a
REIT out of its Distributable Income as of the end of the taxable year as: (a) dividends to owners of the
commonsharesand(b)dividendstoownersofthepreferredsharespursuanttotheirrightsandlimitations
specifiedintheArticlesofIncorporationoftheREIT.
Rule4RealEstateInvestmentTrust
Section1.InvestmentintheREIT.
1.1InvestmentinaREITshallbebywayofsubscriptiontoorpurchaseofsharesofstockoftheREIT.
1.2A REIT may provide in itsArticles of Incorporation different classes of shares of stock enumerating therein
theirrespectivefeatures.

1.3 No shares of stock of the REIT shall be offered for subscription or sale to Public Shareholders except in
accordance with a REIT Plan registered with and approved by the Commission. The REIT Plan shall take the
placeofaprospectus.Itshallcontainthefollowinginformation:
a.investmentpolicy,restrictionsandstrategyoftheREIT
b.discussiononthebusinessplanforpropertyinvestmentandmanagementcoveringthescopeandtype
ofinvestmentsmadeorintendedtobemadebytheREIT,includingthetype(s)ofrealestate(e.g.leisure,
residential,commercial,orindustrial)
c.generalcharacterandcompetitiveconditionsofallrealestatenowheldorintendedtobeacquiredbythe
REITandhowsuchrealestatemeetstheestablishedcriteriaforselection
d.natureandrisksofmakingpropertyinvestmentsineachoftherelevantlocations,including:
i.demographics
ii.stateoftheeconomy,economicrisksandforeignexchangerisk
iii.politicalrisks
iv.legalrisksandtaxconsiderations
v.policiesthataffectpropertyinvestmentsandpropertysales
vi.overviewofthepropertymarket
vii.analysisofthespecificpropertysectorandthecompetitivedynamicsintherentalmarket
viii.operationalrequirementand
ix.rulesandregulationsgoverningpropertyownershipandtenancymatters
e.termsandconditionsofthearrangementsoragreementsthathavebeenenteredintobytheREITforit
to own legal and beneficial title over specific property, and the benefits and risks of such arrangements
includingbutnotlimitedto,anyagrarianrelatedissues,ifany
f.transactionhistoryoftherelevantpropertyinthethree(3)yearsimmediatelyprecedingthedateofthe
valuationreportincludedintheREITPlan
g. any proposed program with timetable for renovation or improvement to the real estate, including the
estimatedcoststhereofandthemethodoffinancingtobeused
h.theoperatingdateofeachoftherealestate,includingtheoccupancyrate,numberoftenantsanditsmix
in terms of occupation or business, principal provisions of the leases, average annual rental per square
meter,andscheduleofleaseexpirationsforthenextthree(3)years
i. the borrowing policy and the method or proposed method of operating and financing the real estate
investmentsoftheREIT
j.whererealestatetobeacquiredaretobefinanced(whollyorinpart)throughborrowings,detailsofthe
borrowingsmustbedisclosedincluding,butnotlimitedto,thesource,type,term/periodandnatureofthe
borrowingsandtheinterestratetobepaidbytheREITandtherisksinvolvedwithrespecttoborrowings
k.themeasuresinplacetomitigateorminimizerisksrelatingtotheinvestmentandmanagementofreal
estateownedbytheREIT
l.thedividendpolicy
m.theinsurancearrangementfortheassetsoftheREIT
n. the exit strategy in the event of divestment (including the exit from any joint ownership arrangement),
factorsandriskswhichmayimpactoractasanimpedimenttoanexit,andthecontingencyplan
o.detailsoftransactionsoragreementsenteredintowithrelatedparties
p. full particulars of the nature and extent of the interest, if any, of any director of the REIT, the Fund
Manager,thePropertyManageroranyRelatedPartiestotheREIT,inthepropertyownedorproposedto
beacquiredbytheREITandwheretheinterestofsuchadirectorconsistsinbeingapartnerinafirm,the

natureandextentoftheinterestinthefirm,withastatementofallsumspaidoragreedtobepaidtohimor
thefirmforservicesrenderedtotheREIT
q. functions, duties and responsibilities of the Property Manager and the Fund Manager and, where
applicable,shareholdingofthePropertyManagerand/ortheFundManagerintheREIT
r. corporate information on the Property Manager, including number of years in real estate/property
management or alternatively, information on two (2) responsible officers who have at least five (5) years
track record in real estate/property management, total assets under management, staff strength,
resources,internalcontrolsandriskmanagementsystem
s. information on the directors and Principal Officers of the Property Manager, highlighting the academic
and/orprofessionalqualificationaswellasexperiencepossessedbytherespectivepersonnel
t.corporateinformationontheFundManager,includingnumberofyearsinfundmanagement,totalassets
undermanagement,staffstrength,internalcontrolsandriskmanagementsystem
u.informationonthedirectorsandPrincipalOfficersoftheFundManager,highlightingtheacademicand/or
professionalqualificationaswellasexperiencepossessedbytherespectivepersonnel
v. details on substantial fees to be paid by the REIT, such as property management fees and fund
managementfees.ThefeespaidtothePropertyManagerandtheFundManagermustbeclearlystated
and shall include: (i) the percentage rate to be paid by the REIT (ii) the basis on which the property
managementfeeiscalculatedand(iii)anillustrationonhowthefeeiscalculated
w. names, designation and the direct and indirect shareholdings in the REIT of Promoters, Principal
Shareholders, directors, Principal Officers and principal officers of the Property Manager and the Fund
Manager
x.disclosureonhowtheproceedsofthepublicofferingandanyotherfundsraisedinconnectionwiththe
publicofferingwillbeutilizedwithtimetableand
y. proforma financial statements which shall include information on NetAsset Value and NetAsset Value
persharebeforelistingandaftertheproposedpublicoffering.
1.5 In order to be valid, any material amendment to the REIT Plan shall be approved by the Commission.Any
amendment to the Plan shall be effective only upon compliance with the requirements relative to said
amendment/s.
Section2.RegistrationandListing.ThesharesofstockoftheREITshallberegisteredwiththeCommissionin
accordancewiththeSRCandlistedinaccordancewiththerulesoftheExchange.
Section3.NationalityRequirement.A REIT that owns land located in the Philippines must comply with foreign
ownershiplimitationsimposedunderPhilippinelaw.
Section4.DividendDistribution.A REIT shall distribute annually, a total of at least ninety percent (90%) of its
Distributable Income as dividends to its shareholders, not be later than the last working day of the fifth (5th)
monthfollowingthecloseofthefiscalyearoftheREITsubjecttothefollowing:
(a)ThedividendshallbepayableonlyfromtheunrestrictedretainedearningsoftheREITasprovidedfor
under Section 43 of the Corporation Code. However, the retained earnings of the REIT may only be
restricted and not available for distribution under the circumstances enumerated under Section 43 of the
Corporation Code and when approved by at least a majority of the entire membership of the board of
directors,includingtheunanimousvoteofallIndependentDirectorsoftheREITprovidedfinally,oncethe
purposeoftherestrictionisaccomplished,theREITshallimmediatelycanceltherestrictionanddistribute
thecorrespondingretainedearningsuponmajorityvoteofthemembersoftheboardofdirectors.
(b) The percentage of dividends with respect to any class of stock to be received by the Public
ShareholderstothetotaldividendswithrespecttothatclassofstockdistributedbytheREITfromoutofits
Distributable Income must not be less than such percentage of their aggregate ownership of the total
outstandingsharesoftheREITwithrespecttothatclassofstock.Anystructure,arrangementorprovision
whichwouldhavetheeffectofdiminishingorcircumventinginanyformthisentitlementtodividendsshall
bevoidandofnoforceandeffect.
(c)TheincomedistributableasdividendbytheREITshallbebasedontheauditedfinancialstatementsfor
the recently completed fiscal year prior to the prescribed distribution.The audited financial statements of
the REIT shall present a computation of its distributable dividend taking into consideration requirements
under the provisions of the Act and this Rule. However, the audited financial statements shall not be

required before the REIT can distribute quarterly and/or semiannual dividends provided, the REIT has
reasonablegroundstobelievethatthemaximumdividendsthatitmaydistributeinsuchfiscalyearshallnot
be more than its Distributable Income based on its audited financial statements for such fiscal year, as
providedabove.
(d) A REIT may declare either cash, property or stock dividends. Provided that, in addition to the
requirementsoftheCorporationCode,thedeclarationofstockdividendsmustbeapprovedbyatleasta
majorityoftheentiremembershipoftheboardofdirectors,includingtheunanimousvoteofallindependent
DirectorsoftheREITandsubjecttoapprovaloftheCommissionwithinfive(5)workingdaysfromreceiptof
therequestforapproval.IftheCommissiondoesnotactonsaidrequestwithinsuchperiod,thesameshall
bedeemedapproved.
(e)DistributableincomeexcludesproceedsfromthesaleofREIT'sassetsthatarereinvestedbytheREIT
within one (1) year from the date of the sale. Gain from the said sale shall, however, form part of the
distributableincome.
(f)TheincomedistributebytheREITshallbeadjustedbydeductingthefollowingunrealizedornonactual
gainsandlosses:
(i)Unrealizedforeignexchangegains,exceptthoseattributabletocashandcashequivalents
(ii) Fair value adjustment or the gains arising from markedtomarket valuation which are not yet
realized
(iii)Fairvalueadjustmentofinvestmentpropertyresultingtogain
(iv)The amount of recognized deferred tax asset that reduced the amount of income tax expense
andincreasedthenetincomeandretainedearnings,untilrealized
(v)Adjustment due to a deviation from any of the prescribed accounting standard which results to
gain
(vi)Otherunrealizedgainsoradjustmentstotheincomeasaresultofcertaintransactionsaccounted
forunderthePhilippineFinancialReportingStandards.
(g)Nonactualexpenses/lossesthatareallowedtobeaddedbacktodistributableincomeshallbelimitedto
thefollowingitems:
(i)Depreciationonrevaluationincrement(aftertax)
(ii)Adjustmentduetofromanyoftheprescribedaccountingstandardwhichresultstoaloss
(iii)Lossonfairvalueadjustmentofinvestmentproperty(aftertax).
Section5.Requirement.TheREITshallcomplywiththefollowingrequirements:
5.1BodyCorporate.
a.Minimum Public Ownership.A REIT shall be a public company and to be considered as such, a REIT
shall:(a)maintainitsstatusasalistedcompanyand(b)uponandafterlisting,haveatleastonethousand
(1,000)PublicShareholderseachowningatleastfifty(50)sharesofanyclassofshares,andwho,inthe
aggregate,ownatleastonethird(1/3)oftheoutstandingcapitalstockoftheREIT.
AREITshall,fromthetimeofincorporation,issuesharesto,orrecordthetransferofallitssharesintothe
name of shareholders, investors or, securities intermediary in the form of uncertificated shares. It shall
engage the services of a duly licensed transfer agent to monitor subsequent transfer of the shares. Said
registrarshallensurethatthesharesaretraceabletothenamesoftheshareholdersorinvestorsandfor
theirownbenefitandnotforthebenefitofanyofthenonpublicshareholders.
Thesharesmayberegisteredunderanomineeandthenomineeshallmakeavailabletothetransferagent
thenamesoftheshareholdersinsuchfrequencyasmaybenecessaryforthetransferagenttoperformits
basicfunctions.
Compliancewiththeminimumpublicownershiprequirementunderthissectionshallbedulycertifiedbythe
transferagentuponlisting,asofrecorddateforanydividenddeclarationoranycorporateactionrequiring
shareholderapprovalandotherrelevanttimesasmayberequiredbytheCommission.
b. Capitalization. A REIT shall have a minimum paidup capital of Three Hundred Million Pesos

(Php300,000,000.00)atthetimeofincorporationwhichcaneitherbeincashand/orproperty.
c.IndependentDirectors.At least onethird (1/3) or at least two (2), whichever is higher, of the board of
directorsofaREITshallbeindependentdirectors.
d. Organization and Governance. As a public company, the REIT shall have such organization and
governance structure that is consistent with the Revised Code of Corporate Governance and pertinent
provisions of the SRC and its IRR. The REIT shall hold such meetings as provided for in its Constitutive
DocumentspursuanttotheCorporationCode.
5.2ExecutiveCompensation. The total annual compensation of all directors and Principal Officers of the REIT
shallnotexceedtenpercent(10%)ofthenetincomebeforeregularcorporateincometaxoftheREITduringthe
immediatelyprecedingtaxableyear,andshallbegovernedbythedisclosurerequirementsofPAS24.
5.3 Fund Manager and Property Manager Fees. The REIT shall engage a Fund Manager and a Property
Manager in accordance with these Rules. The fees received by the Fund Manager and the Property Manager
from the REIT shall not exceed one percent (1%) of the NetAsset Value of theAssets under their respective
management.
Section6.FunctionsoftheREIT.UnlessotherwisestatedintheseRules,theREITshallhaveallofthepowersof
a corporation under the Corporation Code, and shall perform all of the functions of a corporation, except those
expressly delegated under these Rules to the fund Manager and to the Property Manager, and those that are
necessarysuchasbutnotlimitedtothefollowing:
a.appointaFundManager,aPropertyManagerandaPropertyValuer
b.ensurethatthefinancialandeconomicaspectsoftheREITareprofessionallymanagedintheinterestof
theshareholdersandcreditors.
c.formulatetheannualinvestmentstrategyandpolicyoftheREITinaccordancewiththeREITPlan
d.determinetheannualborrowinglimitoftheREIT,inaccordancewiththeREITPlan
e.determinetheacquisitionanddispositionplanofrealestatepropertiesinaccordancewiththeinvestment
objectiveindicatedintheREITPlan
f.implementappropriatepoliciesandconductduediligencereviewssuchthatinvestmentsaremadeonly
aftercarefulanddiligentinvestigationsbytheREIT
g.formulatedividendpaymentschedulesoftheREIT
h.maintainorcausetobemaintainedproperbooksandrecordsoftheREITandcausethepreparationof
theREIT'sfinancialstatements
i.ensurethatalldocumentsinrelationtotheREIT(excludingdocumentscontainingcommerciallysensitive
information) are made available for inspection by the shareholders and creditors of the REIT in the
Philippines,duringnormalofficehours,attheplaceofbusinessoftheREITandensurethatcopiesofsuch
documentsareavailableuponrequestbyanyshareholderorcreditoruponpaymentofareasonablefee
j. ensure compliance with any applicable laws, rules, codes or guidelines issued by governmental
departments, regulatory bodies, exchanges or any other relevant organizations regarding the activities of
theREIToritsadministrationand
k.maintainandimplementinvestorrelationsprocedureswhetheronlineorotherwisetohandlequeriesand
complaints.
InnocaseshalltheREITperformquasibankingfunctionswithouttherequisitelicenseissuedbytheBSP.
Rule5AllowableInvestmentsoftheREIT
Section1.AllowableInvestments.AREITmayonlyinvestin:
1.1Realestate.
a. A REIT may invest in real estate located in the Philippines, whether freehold or lease hold. At least
seventyfivepercent(75%)oftheDepositedPropertyoftheREITshallbeinvestedin,orconsistof,income
generating real estate. Deposited Property that should be invested in Incomegenerating Real Estate
locatedinthePhilippinesshallinnocasebelessthan35%oftheDepositedProperty.

b.A REIT may invest in income generating real estate located outside of the Philippines Provided, that
such investment does not exceed forty percent (40%) of its Deposited Property and only upon special
authority from the Commission. The Commission in issuing such authority shall consider, among others,
satisfactoryproofthatthevaluationofassetsisfairandreasonable.
c.Aninvestmentinrealestatemaybebywayofdirectownershiporashareholdinginadomesticspecial
purposevehicleconstitutedtohold/ownrealestate,subjecttotheconditionsprovidedundertheseRules.
d.Acquisitionofarealestateshallincludetheownershipofallrights,interestsandbenefitsrelatedtothe
ownershipoftherealestate.
e.TherealestatetobeacquiredbytheREITshouldhaveagoodtrackrecordforthree3yearsfromdate
ofacquisition.
1.2 Real estaterelated assets, wherever the issuers, assets, or securities are incorporated, located, issued, or
traded.
1.3 Evidence of indebtedness of the Republic of the Philippines and other evidence of indebtedness or
obligations,theservicingandrepaymentofwhicharefullyguaranteedbytheRepublicofthePhilippines,suchas,
butnotlimitedto,treasurybills,fixedratetreasurynotes,retailtreasurybonds,(denominatedeitherinPhilippine
orinforeigncurrency)andforeigncurrencylinkednotes.
1.4Bondsandotherevidenceofindebtednessissuedby:
a. the government of any foreign country with which the Philippines maintains diplomatic relations, with a
credit rating obtained from a reputable credit rating agency or a credit rating agency acceptable to the
Commissionthatisatleasttwo(2)notcheshigherthanthatofROPbondsand
b. supranationals (or international organizations whose membership transcends national boundaries or
interests,e.g.InternationalBankforReconstructionandDevelopment,AsianDevelopmentBank).
1.5CorporatebondsofnonpropertyprivatelyowneddomesticcorporationsdulyregisteredwiththeCommission
withacurrentcreditratingofatleast"A"byanaccreditedPhilippineratingagency.
1.6 Corporate bonds of a foreign nonproperty corporation registered in another country provided that the said
bondsaredulyregisteredwiththeCommissionandtheforeigncountrygrantsreciprocalrightstoFilipinos.
1.7CommercialpapersdulyregisteredwiththeCommissionwithacurrentinvestmentgradecreditratingbased
ontheratingscaleofanaccreditedPhilippineratingagencyatthetimeofinvestment.
1.8 Equities of a nonproperty company listed in a local or foreign stock exchange, provided that these stocks
shallbeissuedbycompaniesthatarefinanciallystable,activelytraded,possessgoodtrackrecordofgrowthand
havedeclareddividendsforthepastthree(3)years.
1.9CashandCashEquivalentItems.
1.10CollectiveinvestmentschemesdulyregisteredwiththeCommissionororganizedpursuanttotherulesand
regulationsoftheBSPprovidedhoweverthat:(i)thecollectiveinvestmentschemesmusthaveatrackrecordof
performanceatparwithorabovethemedianperformanceofpooledfundsinthesamecategoryasappearingin
theprescribedweeklypublicationoftheNetAssetValuePerUnitoftheCollectiveInvestmentSchemeunitsand
(ii) new collective investment schemes may be allowed provided that its fund manager has at least a three (3)
yeartrackrecordinmanagingpooledfunds.
1.11OffshoremutualfundswithratingsacceptabletotheCommission.
1.12InvestmentsoftheREITshallberecognizedandmeasuredinitsfinancialstatementsinaccordancewiththe
requirementsofthePFRSandtheapplicableinterpretationsoranyamendmentsthereto,asfollows:
a.InvestmentProperty(PAS40andrelatedstandards)
b.FinancialAssets(PAS39,PFRS7andrelatedstandards)
c.InvestmentsinAssociates(PAS28)
d.InvestmentsinSubsidiaries(PAS27)
e.InterestsinJointVentures(PAS31)

f.NoncurrentAssetsHeldforSaleandDiscontinuedOperations(PFRS5)
g.Leases(PAS17).
1.12 Synthetic Investment Products, provided that: (i) Synthetic Investment Products shall not constitute more
thanfivepercent(5%)oftheInvestibleFundsoftheREIT,(ii)theREITshallavailofsuchSyntheticInvestment
Products solely for the purpose of hedging risk exposures of the existing investments of the REIT (iii) the
Synthetic Investment Products shall be accounted for in accordance with PFRS (iv) the Synthetic Investment
Productsshallbeissuedbyauthorizedbanksornonbankfinancialinstitutionsinaccordancewiththerulesand
regulationsoftheBSPand/ortheSECand(iv)theuseofSyntheticInvestmentProductsshallbedisclosedinthe
REITPlanandunderspecialauthorityfromtheSEC.
Section2.PropertyDevelopment.AREITshallnotundertakepropertydevelopmentactivitieswhetheronitsown,
inajointventurewithothers,orbyinvestinginunlistedpropertydevelopmentcompanies,unless:(i)itintendsto
holdinfeesimplethedevelopedpropertyforatleastthree(3)yearsfromdateofcompletion(ii)thepurchase
agreement of the said property is made subject to the completion of the building with proper cover for
construction risks (iii) the development/construction of real state shall be carried out of terms which the best
available for the REIT and which are no less favorable to the REIT than an arm's length transaction between
independentpartiesand(iv)theprospectsfortherealestateuponcompletioncanbereasonablyexpectedtobe
favorable.
Thetotalcontractvalueofpropertydevelopmentactivitiesundertakenandinvestmentsinuncompletedproperty
developmentsshouldnotexceedtenpercent(10%)oftheDepositedPropertyofREIT.
Section3.LeaseholdProperty.Wherealeaseholdpropertyisacquired,theconsentoftheregulatoryauthorityto
transfertheleaseshallbeobtained.Theleaseshallberegisteredlease.
Section4.Encumbrances.Unlessotherwisedisclosed,allrealestateshallbefreefromallencumbrancesatthe
timeofacquisition,exceptforchargesenteredbyfinancialinstitutionsinrelationtoloanfacilitiesextendedforthe
constructionoracquisition,exceptforchargesenteredbyfinancialinstitutionsinrelationtoloanfacilitiesextended
fortheconstructionoracquisitionoftherealestate.
Section5.Insurance.AllrealestateacquiredbyREITshallbeinsuredfortheirfullreplacementvalue,including
lossofrental,whereappropriate,withinsurancecompaniesapprovedbytheFundManager.
Section6.SingleEntityLimit. Not more than fifteen percent (15%) of the Investible Funds of the REIT may be
investedanyoneissuer'ssecuritiesoranyonemanagedfund,exceptwithrespecttothePhilippinegovernment
securitieswherethelimitistwentyfivepercent(25%).
Section7.ForeignAssets.A REIT may invest in local or foreign assets, subject to the terms of its Constitutive
DocumentsandspecificprovisionsoftheseRules.WhereanInvestmentinaforeignrealestateassetismade,
theREITshouldensurethattheinvestmentcomplieswithalltheapplicablelawsandrequirementsinthatforeign
country,suchas,butnotlimitedtoforeignownershiprestrictions,ifany,andrequisitesofhavinggoodandvalid
titletotherealestate.
1 a v v p h i1

Section8.AggregateLeverageLimit.ThetotalborrowinganddeferredpaymentsofaREITshouldnotexceed
thirty five percent (35%) of its Deposited Property Provided, however, that the total borrowings and deferred
payments of a REIT that has a publicity disclosed investment grade credit rating by a duly accredited or
internationally recognized rating agency may exceed thirtyfive percent (35%) but not more than seventy
percent(70%) of its Deposited Property. Provided,further that in no case shall a Fund Manager, borrow for the
REITfromanyofthefundsunderitsmanagement.
Section 9. Related Party Transactions. Any contract or amendment thereto, between the REIT and Related
Parties,includingcontractsforservices,shallcomplywiththefollowingminimumrequirements:
a. Full, fair, timely and accurate disclosures on the identity of the parties, their relationship with the REIT,
and other important terms and conditions of the transaction have been made to the Exchange and the
Commission
b.Beonfairreasonableterms,includingthecontractprice
c.Approvedbyatleastamajorityoftheentiremembershipoftheboarddirectors,includingtheunanimous
voteofallindependentdirectorsoftheREIT
d.Accompaniedbyafairnessopinionbyanindependentappraiserdoneinaccordancewiththevaluation
methodology prescribed by the Commission, in the case of an acquisition or disposition of real estate
assetsandpropertyorshareswapsorsimilartransactionsand

e.Anyothermatterthatmaybemateriallyrelevanttoaprospectiveinvestorindecidingwhetherornotto
investintheREIT.
Section10.Valuation.AfullvaluationofaREIT'sassetsshallbeconductedbyanindependentPropertyValuer,
duly accredited by the Commission, at least once a year. NO valuer shall value the same REIT for more than
three(3)consecutiveyears.Subjecttoacuringperiodofthree(3)years,theREITmay,however,reengagethe
services of said property valuer.The Valuation Report, including the standards of asset valuation and valuation
methodologyshallbedisclosedintheAnnualReportoftheREIT.
Section11.Records.Allproceduresandprocessesfollowed,anddecisionsmadeinrelationtowhetherornotto
investinaparticularpropertyshallbefully,propertyandclearlydocumentedbytheREIT,theFundManagerand
PropertyManager,asmaybeapplicable.
Section12.ReportorialandDisclosureRequirements.
12.1 Requirements. The REIT shall comply with the reportorial and disclosure requirements prescribed by the
CorporationCode,theSRCandtherelevantExchange.TheBIRshalllikewisebefurnishedcopiesofthereports
herein prescribed. At the minimum, the REIT shall disclose the following information in its Annual, Quarterly
CurrentReport:
a.MaterialContractsasdefinedunderRule3(v)
b.BreachoftheborrowinglimitofREITandhowandwhentoaddresssaidbreach
c.InvestmentofREIT
d.AproposedchangeintheFundManager,PropertyManager,ValuerorauditoroftheREIT,andthe
reasonstherefore
e.ValuationoftherealestatepropertiesoftheREIT,includingthevaluationmethodologyusedtherefore
f.MaterialchangesintheincomestreamoftheREIT
g.MaterialchangesintheREIT'sfinancialforecast
h.AnyfeereceivedbyanypartyrelatingtotheacquisitionordispositionoftherealestateoftheREIT
i.Givingorreceivinganoticeofintentiontoundertakeamerger,consolidation,jointventure,takeoveror
spinoffinvolvingtheREIT
j. Any modification of the rights of the holders of any class securities issued by the REIT and the
correspondingeffectofsuchmodificationupontherightsoftheholders
k.Anydeclarationofcashdividend,stockdividend.PropertydividendandpreemptiverightsbytheREIT
l.AppointmentofreceiverorliquidatorfortheREIT
m.Lossesorpotentiallosseswhichamounttoatleast(5%)ofthevalueoftheDepositedPropertyofthe
REIT
n.Occurrenceofanyeventofdissolutionwithdetailsinrespectthereto
o.ActsoffactsthatmightseriouslyimpairthebusinessactivitiesoftheREIT
p.AnydevelopmentactivityundertakenbytheREIT,includingtheessentialdetailsthereof
q.DirectandindirectownershipofdirectorsandPrincipalOfficersinthesecuritiesoftheREIT
r.AnyamendmenttotheConstitutiveDocumentsoftheREIT
s.AnymajorchangeinaccountingpolicyoftheREITand
t.AnyplannedacquisitionofoutstandingsharesordispositionoftreasurysharesoftheREIT
u.Summaryofrealestatetransactionsenteredintoduringtheperiod,includingtheidentityoftheparties,
thecontractpriceandtheirvaluations,includingthemethodsofvaluation
v. Summary of the REIT's real estate assets, including the location of such assets, their purchase prices
andthelatestvaluations,rentalsreceivedandoccupancyratesand/ortheremainingtermsoftheREIT's

leaseholdpropertiesand
w.ComparativesummarytothefinancialperformanceoftheREITforthesameperiods.
12.2FailureofCompliance.FailuretocomplywithreportorialanddisclosurerequirementsshallsubjecttheREIT
totheapplicablepenaltiesundertheSecuritiesRegulationCodeandtherulesoftherelevantExchange,without
prejudicetothefillingoftheappropriateadministrative,civiland/orcriminalactionundertheREITActof2009or
existinglaws.
Rule6FundManager
Section 1. Fund Manager. A REIT shall appoint a Fund Manager who shall be independent of the REIT, its
promoter/sorsponsor/s.
Section 2. Organization and Requirements. A REIT Fund Manager shall subject to the following minimum
requirements:
21.1Itshallberegisteredcorporation:(I)dulylicensedbytheappropriatePhilippineregulatoryagencyengagein
thebusinessoffundmanagement.IftheFundManagerisatrustentity,itshallbecoveredbyexistingBSPrules
and regulations governing trust entities and regulations which the BSP may from time to time issue. (ii) with at
leastathree(3)yeartrackrecordintheareaoffundmanagement,corporatefinance,orotherrelevantfinance
related functions and (iii) a minimum paid up or assigned capital in the case of foreign corporation, of One
HundredMillionPesos(Php100,000,000.00)oritsequivalentinforeigncurrencywhichshallremainunimpaired
atanygiventime,otherwise,anadditionalcapitalinfusionshallbemadewithinthree(3)workingdaysfromsuch
impairment (iv) with sufficient human, organizational and technical resources for the proper performance of its
duties,includingtwo(2)responsibleofficersoratrustofficer,incaseofatrustentity,shallbeavailableatalltimes
tosupervisethebusinessoftheFundManager
21.2 Its office in the Philippines shall have a meaningful role in its business activities and must perform
accounting,complianceandinvestorrelationsservicesinthePhilippines
21.3 Its chief executive officer or trust officer shall be resident of the Philippines, and its two (2) fulltime and
qualified professional employees shall have a track record and experience in financial management as well as
experienceintherealestateindustryforatleastfive(5)years
Section3.FunctionsoftheFundManager.TheFundManagershallperformthefollowingfunctions.
3.1ImplementtheinvestmentstrategiesoftheREITby:(I)determiningtheallocationoftheDepositedPropertyto
theallowableinvestmentoutletsinaccordancewiththeREITPlanandtheinvestmentstrategyoftheREITand
(ii)selectingincomegeneratingrealestateinaccordancewiththeinvestmentstrategyoftheREIT.
NotwithstandingthewritteninstructionsoftheREIT,itshallbethefiduciaryresponsibilityoftheFundManagerto
objectively evaluate the desired investments, and formally advise the REIT of its recommendations, even if
contrarytotheinstructions
3.2 Oversee and coordinate the following activities: property acquisition leasing operational and financial
reporting(includingoperatingbudgets)appraisalauditsmarketreviewaccountingandreportingprocedures,as
wellasfinancingandassetdispositionplans
3.3CauseavaluationofanyoftherealestateandotherpropertiesoftheREITtobecarriedoutbytheProperty
ValueronceayearwhenevertheFundManagerbelievesthatsuchvaluationisappropriate
3.4Takeallnecessarymeasurestoensure:(i)thattheNetAssetperunitofaREITscalculatedasandwhenan
annualvaluationreportisissuedbythePropertyValuerfortherelevantperiod,andthatsuchNetAssetValueper
unitshallbedisclosedintheannualreports(ii)thattheinvestmentandborrowinglimitationssetoutintheREIT
PlanandtheconditionsunderwhichREITwasauthorizedarecompliedwith(iii)thatalltransactionscarriedout
byoronbehalfoftheREITareconductedatarmslength(iv)thatalltimesaREIThasproperlegaltitletothe
real estate it owns, as well as to the contracts. (such as property contracts, rental agreements, joint venture or
jointarrangementagreements,andanyotheragreements)enteredintoonbehalfoftheschemewithrespectto
itsassetsandthat(v)thatthepropertyManagerobtainsadequatepropertyinsurancefortherealpropertiesof
the REIT from insurance companies approved by the Fund Manager. It shall take custody of all relevant
documentssupportingtheinsurancetakenonrealpropertiesoftheREIT.
3.5Performallsuchfunctionsnecessarytoassetmanagement.
Section4.MinimumDocumentaryRequirements.
4.1ThearrangementbetweentheREITandtheFundManagershallbecoveredbythewrittendocumententered

intobytheparties,accompaniedbyaSecretary'sCertificateattestingtotheapprovalbytheboardofdirectorsof
theREIToftheappropriateresolutionsforthe:(i)appointmentoftheFundManager,(ii)theestablishmentofthe
account,and(iii)designatedofsignatoriestotheaccount.
4.2 The contract between the REIT and the Fund Manager shall comply with the disclosure and other
requirements prescribed for Related Party Transactions. The arrangement between the REIT and the Fund
Managershallbecoveredbyawrittendocumentstatingthefollowing:
a.titleornatureofcontractualagreementinnoticeableprint
b.legalcapacities,innoticeableprint,ofpartiessoughttobecovered
c.purposesandobjectives
d.fundsand/orpropertiessubjectofthearrangement
e.distributionofthefundsand/orproperties
f.dutiesandpowersoftheFundManager
g.liabilitiesoftheFundManager
h.reportstotheREIT,Commission,BIRandExchange
i.detailsofanycustodianshiparrangement
j.terms,includingperiodofengagement,terminationofcontractualarrangementand,inappropriatecases,
provisionforsuccessorFundManager
k. the exact amount or rate of the compensation of the Fund Manager, provided that the amount of fees
that shall be charged to the REIT shall cover the fair and equitable share of the REIT in the total routine
administrative expenses of the Fund Manager such as salaries and wages, supplies, credit investigation,
collateralappraisal,security,messengerialandjanitorialservices,supervisionfeesimposedbytherelevant
regulatory agency and internal audit fees. However, the Fund Manager may charge the REIT for special
expenses in case such expenses are: (1) necessary to preserve or enhance the value of the fund (2)
payable to a nonrelated third party covered by a separate contract, and (3) disclosed to the REIT
shareholders.Provided,however,thatinnocaseshallthefeescollectedbytheFundManagerexceed1%
ofthenetassetvalueoftheassetsundermanagement
l. if the Fund Manager is a trust entity, a statement in noticeable print to the effect that the funds and
propertiesarenotcoveredbythePhilippineDepositInsuranceCorporationandthatlosses,ifany,shallbe
fortheaccountoftheREITand
m. disclosure requirements for transactions requiring prior authority and/or specific written investment
directivefromtheREIT,courtofcompetentjurisdictionorothercompetentauthority.
4.3AcopyofthewrittenagreementshallbesubmittedtotheCommissiontogetherwiththeREITPlanandthe
registration statement, and shall be available at the principal office of the REIT and the Fund Manager during
regularofficehours,forinspectionbyanyshareholderofrecordoftheREIT.Uponrequest,acopyofthewritten
agreement shall be furnished such shareholder of record, and the cost of reproduction shall be at his own
expense.
Section 5. Degree of Care and Diligence. The Fund Manager shall observe the care and diligence required
undertheseRules,asfollows:
5.1 The Fund Manager shall administer and manage the assets of the REIT with the skill, care, prudence and
diligencenecessaryunderthecircumstancesthenprevailingthataprudentman,actinginthesamecapacityand
familiarwithsuchmatters,wouldexerciseintheconductofanenterpriseofalikecharacterandsimilaraims.
5.2TheFundManagershallhavereasonableandadequatebasisforpreparingtheinvestmentrecommendation.
5.3TheFundManagershallestablish,maintainandimplementwrittenpoliciesandproceduresthatensure"best
execution"oftrades.Toshowproofofbestexecution,theFundManagershallmaintainrecordsorquotesfrom
two(2)alternateproviders,wheneverapplicable,ordatafromanyreputablesourcethatcanbestprovideabasis
fortheasset'sfairvalue.SuchrecordsshallbemadeavailabletotheCommissionuponrequest.
5.4FundsorpropertiesofaREITmanagedbyaFundManagershallnotbecommingledwiththefundsofother
clients.

5.5 The Fund Manager may only outsource activities confined to backroom/accounting and securities
custodianshiparrangements.
5.6WhenrequiredundertheRules,theFundManagershallobtaintherequiredapprovalforspecifictransactions
priortoitsimplementation.
5.7 The Fund Manager shall provide the REIT with full and accurate information in order to make an informed
investment decision when approving a transaction or investment recommendation. The Fund Manager shall
promptly transmit/relay to investors all material facts necessary for them to protect their interest with the
knowledgeoforreasonablydiscoverablebytheFundManager,particularly,informationthatcouldenableclients
tomakewellinformeddecisions.
Section6.ConflictofInterest.
6.1WhereaFundManagerhasamaterialinterestinatransactionwithorfortheREIT,orarelationshipwhich
givesrisetoanactualorpotentialconflictofinterestinrelationtosuchtransaction,itshallneitheradvise,nordeal
inrelationtothetransactionunlessithasdisclosedinwritingthatmaterialinterestorconflicttotheREITandhas
takenallreasonablestepstoensurefairtreatmentoftheREIT.
It shall establish, maintain and implement written policies and procedures on conflict of interest, particularly to
identifyanddealwithconflictsofinterestsituations.
6.2TheFundManagershallestablish,maintainandimplementwrittenpoliciesandprocedurestoensurethatits
researchisindependentandimpartialinordertoprovideareasonableandadequatebasisformakinginvestment
decisionsandtakinginvestmentaction.
Section7.LendingandInvestmentDisposition.
7.1ManagementoftheFunds.AssetsreceivedbytheFundManagershallbeadministeredinaccordancewith
thetermsofthewritteninstrumentsignedbytheparties.
7.2InvestmentStrategy.Priortomakinganyinvestmentrecommendationsorcarryingoutanytransactionsforor
onbehalfoftheREIT,theFundManagershallestablishandunderstandtheinvestmentobjectives,instructions,
riskprofileandinvestmentrestrictionsoftheREIT.Forthispurpose,theREITshall,onanannualbasis,prepare
athree(3)yearinvestmentstrategyconsistentwiththeREITPlancovering,amongothers,intendedpurchases
anddivestmentsofrealandotherproperties.TheREITshallsubmittheinvestmentstrategyforthesucceeding
yearstotheFundManagerinOctoberofeachyear.
7.3DiscretionaryPowers.WhentheFundManagerisgranteddiscretionarypowersintheinvestmentdisposition
ofREITfunds,andunlessotherwisespecificallyenumeratedintheagreementorindentureanddirectedinwriting
bytheREIT,courtofcompetentjurisdictionorothercompetentauthority,loansandinvestmentsofthefundshall
belimitedto:
a.EvidenceofindebtednessoftheRepublicofthePhilippinesandanyotherevidenceofindebtednessor
obligations the servicing and repayment of which are fully guaranteed by the Republic of the Philippines
and
b.LoansfullyguaranteedbytheRepublicofthePhilippinesastothepaymentofprincipalandinterest.
The specific directives required under this subsection shall consist of the following (i) the transaction to be
enteredinto(ii)theparty'sname(iii)amountinvolvedand(iv)collateral,ifany.
7.4TransactionsRequiringPriorAuthority.InadditiontorequirementsofRelatedPartyTransactionsasprovided
intheseRules,aFundManagershallnotundertakeanyofthefollowingtransactionsfortheaccountoftheREIT,
unlesspriortoitsexecution,suchtransactionhasbeenfullydisclosedandspecificallyauthorizedinwritingorby
officialelectroniccorrespondencebytheREIT,courtofcompetentjurisdictionorothercompetentauthority:
a. Lend, sell, transfer or assign money or property to any of the departments, directors, officers,
stockholdersoremployeesoftheFundManagerortheirrelativeswithinthefirstdegreeofconsanguinityor
affinity, or to the related interest of such directors, officers and stockholders, or to any corporation where
theFundManagerownsatleastfiftypercent(50%)ofthesubscribedcapitalorvotingstockinitsownsat
leastfiftypercent(50%)ofthesubscribedcapitalorvotingstockoftheFundManager
b. Purchase or acquire property or debt instruments from any of the departments, directors, officers,
stockholders,oremployeesoftheFundManager,ortheirrelativeswithinthefirstdegreeofconsanguinity
or affinity, or to the related interest of such directors, officers and stockholders, or from any corporation
where the Fund Manager owns at least fifty percent (50%) of the subscribed capital or voting stock in its
ownrightandnotastrusteenorinarepresentativecapacityortoanycorporationwhichownsatleastfifty

percent(50%)ofthesubscribedcapitalorvotingstockoftheFundManager
c. Invest in equities of, or in securities underwritten by, the Fund Manager or a corporation in which the
FundManagerownsatleastfiftypercent(50%)ofthesubscribedcapitalorvotingstockinitsownrightor
to any corporation which owns at least fifty percent (50%) of the subscribed capital or voting stock of the
FundManager
d. Sell, transfer, assign, or lend money or property from one managed fund to another, except when the
investmentisinevidenceofindebtednessoftheRepublicofthePhilippinesorloansfullyguaranteedbythe
RepublicofthePhilippinesastothepaymentofprincipalandinterest.
Thedisclosurerequiredbythissubsectionshallconsistofthefollowingminimuminformation:(i)thetransactions
to be entered into (ii) identities of the parties involved in the transactions and their relationships (iii) amount
involvedand(iv)collateralsecurities,ifany.
7.5 Funds Awaiting Investments or Distribution. Funds held by the Fund Manager awaiting investment or
distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper
managementoftheaccount.
7.6OrderAllocation.
a.TheFundManagershallestablish,maintainandimplementpoliciesandprocedurestoensurefairand
equitableallocationofordersamongitsclients,includingtheREIT.
b.The Fund Manager shall ensure that the amount of commission or management fee earned from any
particularclientortransactionshallnotbethedeterminingfactorintheallocationoforders.
c.WheretheFundManagerundertakesproprietarytrading,theFundManagershall,initsagreementwith
the REIT, disclose to the REIT the method of selection and determination of securities transacted for the
proprietaryaccountsandclient'saccounts.TheFundManagershallensurethattradesarenotdirectedto
benefititsproprietaryaccountsoranypreferentialclientsand,forthispurpose,shallestablishinformation
barriers or firewalls, closely supervise internal communication to prevent flow of information and maintain
the confidentiality of pending transactions and the holdings of the REIT. Proprietary orders shall be
conductedthroughaseparatelicensedrepresentativeoftheFundManagerwhoshallnotbemanagingthe
REIT'sfunds.
d. Where the Fund Manager is part of a group of companies, which undertake other financial or real
estate/property activities, the Fund Manager shall ensure that there is an effective system of functional
barriers (firewalls) in place to prevent the flow of information that may be price sensitive or material and
nonpublic,betweenthedifferentareasofoperations.
e. The Fund Manager shall establish, maintain and implement written policies and procedures to ensure
thattheinterestofRelatedPartiesshallnotsupersedetheinterestsoftheREIT.TheFundManagershall
disclosesuchpoliciestotheREIT.
Section8.ProhibitiononInsiderTrading/MisuseofInformation
8.1TheFundManagershallnoteffectorcausetobeeffectedanytransactionbasedonmaterialnonpublicor
pricesensitiveinformation,orwhereprohibitedfromdealingbystatutoryrestrictionsoninsidertrading.
8.2 The Fund Manager shall establish, maintain and implement written policies and procedures to prevent the
misuseofmaterialnonpublicorpricesensitiveinformationrelatingtotheREITbypersonshavingaccesstosuch
information.TheFundManagershallensurethatpersonshavingaccesstosuchinformationareawareofsuch
restrictions.
8.3TheFundManagershalldiscloseallinterestinsecuritiesasrequiredbyallapplicablestatutoryrequirements
andshallensurethatitsstaffisawareofsuchrequirements.
Section9.ConfidentialityofInformation.
9.1 The Fund Manager shall establish, maintain and implement written policies and procedures to ensure
confidentialityofinformationrelatingtothefundsandpropertiesoftheREIT.
9.2Any information relating to the funds or properties of the REIT shall not be disclosed to a third party or an
unauthorizedperson,unlessthereisalegalorregulatoryrequirementtodisclosesuchinformation.
Section10.Reports.TheFundManagershallsubmitthefollowingreports:

10.1 The three (3)year investment strategy prepared by the REIT, which shall be due for submission to the
CommissionandtherelevantExchangeonorbeforeDecemberofeveryyear.
10.2 Quarterly written report on the performance of the REIT's funds and properties, and of the appropriate
benchmarksshallbesubmittedtotheREIT,theCommission,theBIRandtherelevantExchangewithinfortyfive
(45)daysaftertheendofeachquarter.
Rule7PropertyManager
Section1.PropertyManager. The REIT shall appoint a Property Manager who shall be independent from the
REIT,itspromoter/sorsponsor/s.APropertyManagershallbeconsideredindependentifitshallcomplywiththe
FitandProperRuleashereindefined.
Section2.MinimumQualifications.ThePropertyManagershallcomplywiththefollowingminimumqualifications:
2.1 It shall possess sufficient human, organizational and technical resources for the proper performance of its
duties, including two (2) responsible officers each of whom shall have at least five (5) years track record in
property portfolio management, and at least one (1) of the responsible officers shall be available at all times to
supervisethebusinessofthePropertyManager,includingassetandpropertymanagement.
2.2Itshallmaintainsatisfactoryinternalcontrolsandwrittencomplianceprocedures.
2.3 It shall have sufficient financial resources at its disposal to enable it to conduct its business effectively and
meetitsliabilities.
Section 3. Functions of the Property Manager. The Property Manager shall be responsible for managing all
aspects of the real estate owned by the REIT. The Property Manager shall perform the following functions in
accordancewiththeREITPlanandtheinvestmentstrategyoftheREITincludingthefollowing:
a.planthetenantmixandidentifypotential
b.formulateandimplementleasingstrategies
c.enforcetenancyconditions
d.ensurecompliancewithgovernmentregulationsinrespectoftherealestateundermanagement
e.performtenancyadministrationwork,suchasmanagingtenantoccupancyandancillaryamenities,and
negotiatingwithtenantsongrant,surrenderandrenewaloflease,rentreview,terminationandrelettingof
premises
f. conduct rental assessment, formulating tenancy terms, preparing tenancy agreements, rent collection
andaccounting,recoveryofarrearsandpossession
g. secure and administer routine management services, including security control, fire precautions,
communicationsystemsandemergencymanagement
h.maintainandmanagethephysicalstructures/realproperties
i. formulate and implement policies and programs in respect of building management, maintenance and
improvementand
j.initiatingrefurbishmentandmonitoringsuchactivity.
Section4.WrittenAgreement.
4.1The contract between the REIT and the Property Manager shall be covered by a written document entered
intobytheparties,accompaniedbyaSecretary'sCertificateattestingtotheapprovalbytheboardofdirectorsof
theREIToftheappropriateresolutionsfortheappointmentofthePropertyManager.
4.2 The contract between the REIT and the Property Manager must comply with the disclosure and other
requirementsprescribedforRelatedPartyTransactionsandmustbesubmittedtotheCommissiontogetherwith
the REIT Plan registration statement. The arrangement between the REIT and the Property Manager shall be
coveredbyawrittendocumentstatingthefollowing:
a.titleornatureofcontractualagreementinnoticeableprint
b.legalcapacities,innoticeableprint,ofpartiessoughttobecovered

c.purposesandobjectives
d.realpropertiessubjectofthearrangement
e.dutiesandpowersofthePropertyManager
f.liabilitiesofthePropertyManager
g.reportstotheREIT
h. terms including the period of engagement, termination of contractual arrangement and, in appropriate
cases,provisionforsuccessorPropertyManager
i.theexactamountorratecompensationofthePropertyManager,providedthattheamountoffeesthat
shall be charged to the REIT shall cover the fair and equitable share of the REIT in the total routine
administrative expenses of the Property Manager such as salaries and wages, supplies, appraisals,
security,messengerialandjanitorialservices,supervisionfeesimposedbytherelevantregulatoryagency
andinternalauditfees.However,thePropertyManagermaychargetheREITforspecialexpensesincase
suchexpensesare:(1)necessarytopreserveorenhancethevalueoftheREIT'sDepositedProperties(2)
payabletoathirdpartycoveredbyaseparatecontract,and(3)disclosedtoREIT'sstockholders.Provided,
however,thatinnocaseshallthefeescollectedbythePropertyManagerexceed1%ofthenetassetvalue
oftheassetsundermanagement
j. disclosure requirements for transactions requiring prior authority and/or specific written investment
directivefromtheREIT,acourtofcompetentjurisdictionorothercompetentauthority.
4.3AcopyofthecontractshallbesubmittedtotheCommissiontogetherwiththeREITPlanandtheregistration
statement, and shall be available at the principal office of the REIT and the Property Manager during regular
office hours for inspection by any shareholder of record of the REIT. Upon request, a copy of the written
agreementshallbefurnishedsuchshareholderofrecord,athisownexpense.
Section5.DegreeofCareandDiligence.ThePropertyManagershallobservethedegreeofcareanddiligence
providedintheserules,asfollows:
5.1ThePropertyManagershallexercisediligenceandthoroughnessintheexerciseofitsfunctions.
5.2ThePropertyManagershallbeliablefortheactsandomissionsofitsnomineesandagents.
5.3ThePropertyManagershallobtainapprovalforspecifictransactionspriortoitsimplementation.
5.4ThePropertyManagershallprovidetheREITwithfullandaccurateinformationinordertomakeaninformed
decisionregardingpropertymanagementmatters.
5.5ThePropertyManagershallnotmakeanymisrepresentationinanypropertymanagementrecommendation.
5.6PropertiesofaREITmanagedbyaPropertyManagershallnotbecommingledwiththepropertiesofother
clients.
Section6.ConflictofInterest.
6.1WhereaPropertyManagerhasamaterialinterestinatransactionwithorfortheREIT,orarelationshipwhich
givesrisetoanactualorpotentialconflictofinterestinrelationtosuchtransaction,itshallneitheradvise,nordeal
in relation to the transaction unless he has fully disclosed that material interest or conflict to the REIT and has
takenallreasonablestepstoensurefairtreatmentoftheREIT.
6.2 The Property Manager shall establish, maintain and implement policies and procedures to ensure fair and
equitableallocationofresourcesamongitsclients,includingtheREIT.
6.3 The Property Manager shall ensure that the amount of commission or management fee earned from any
particularclientortransactionshallnotbethedeterminingfactorintheallocationofresources.
6.4 Where the Property Manager is part of a group of companies which undertake real estate activities, the
Property Manager shall ensure that there is an effective system of functional barriers (firewalls) in place to
preventtheflowofinformationthatmaybepricesensitiveormaterialandnonpublicbetweenthedifferentareas
ofoperations.
6.5ThePropertyManagershallestablish,maintainandimplementwrittenpoliciesandprocedurestoensurethat
the interest of Related Parties shall not supersede the interests of the REIT. The Property Manager shall fully

disclosesuchpoliciestotheREIT.
Section7.ProhibitiononMisuseofInformation.ThePropertyManagershallestablish,maintainandimplement
writtenpoliciesandprocedurestopreventthemisuseofmaterialnonpublicorpricesensitiveinformationrelating
to the REIT by persons having access to such information. The Property Manager shall ensure that persons
havingaccesstosuchinformationareawareofsuchrestrictions.
Section8.ConfidentialityofInformation.
8.1 The Property Manager shall establish, maintain and implement written policies and procedures to ensure
confidentialityofinformationrelatingtothefundsandpropertiesoftheREIT.
8.2 Any information relating to the properties or funds of the REIT shall not be disclosed to any third party
unauthorizedperson,unlessthereisalegalorregulatoryrequirementtodisclosesuchinformation.
Rule8FitandProperRule
Section1.FitandProperRule.TomaintainthequalityofmanagementoftheREITandaffordbetterprotectionto
REITinvestors,theCommission,ortheconcernedregulatoryagency,shallprescribeorpassuponandreviewthe
qualificationsofindividualselectedorappointedasdirectorsofofficersoftheREIT,REITfundmanagers,REIT
property managers, distributors and other REIT participants and disqualify those found unfit. The appropriate
regulatoryagencymaydisqualify,suspendorremoveanydirectororofficerwhocommitsoromitsanactwhich
rendershimunfitfortheposition.
In determining whether an individual is fit and proper to hold the position, regard shall be given to his integrity,
experience,education,trainingandcompetence.
Section2.Disqualifications.Thefollowingpersonsshallinnocasebeallowedtoserveoractasdirectorofofficer
orconsultantofanyREIT,REITfundmanager,orREITpropertymanager:
2.1Anypersonconvictedofanycrimeinvolvinganysecurityorfinancialproduct
2.2Anypersonconvictedofanoffenseinvolvingfraudorembezzlement,theft,estafaorotherfraudulentactsor
transactions
2.3Anypersonwho,byreasonofanymisconduct,isenjoinedbyorder,judgment,ordecreebyanycourt,quasi
judicial body or administrative agency of competent jurisdiction from acting as a director, officer, employee,
consultant,oragentoccupyinganyfiduciaryposition
2.4 Any person found by the appropriate regulatory agency to have violated, or aided, abetted, counseled,
commanded,induced,orprocuredtheviolationofthisAct,theCorporationCode,theGeneralBankingLaw,the
Insurance Code, the Securities Regulation Code, or any related laws and any rules, regulations or orders
thereunder
2.5Anypersonjudiciallydeclaredtobeinsolvent,orincapacitatedtocontractand
2.6Anypersonfoundguiltybyaforeigncourt,regulatoryauthorityorgovernmentagencyoftheactsorviolations
similartoanyoftheactsormisconductenumeratedintheforegoingparagraphs.
Aconvictioninthefirstinstanceshallbeconsideredsufficientgroundfordisqualification.Applicantsshallsubmit
thepertinentclearancerelativethereto.
Rule9PropertyValuer
Section1.AppointmentofanIndependentPropertyValuer.AREITshallappointadulyaccreditedindependent
Property Valuer to prepare a full valuation of a REIT's assets at least once a year in accordance with the
applicablerulesofassetvaluationandvaluationmethodologyprescribedbytheCommission.
Apropertyvaluershallnotbeconsideredindependentif
a.itisthesubsidiaryorholdingcompanyof:
i.theREIT
ii.thePropertyManager
iii.theFundManager
iv.anyofthePrincipalStockholdersoftheREITor

v.theholdingcompany,SubsidiaryorAffiliateofthePropertyManager,theFundManager,oranyof
thePrincipalShareholdersoftheREITor
b.anyofitspartners,directorsorPrincipalOfficersisanofficer,directororanassociateof:
i.theREIT
ii.thePropertyManager
iii.theFundManager
iv.anyofthePrincipalShareholdersoftheREITor
v. the holding, Subsidiary or Affiliate of the Property Manager, the Fund Manager or any of its
PrincipalShareholdersor
c. any of its directors or Principal Officers holds or controls ten percent (10%) or more of the beneficial
interestin,ortherighttovoteinthegoverningbodiesofanyoftheentitiesinb(i),b(ii),b(iii)orb(iv)or
d.incasewheretheREITintendstoacquireordisposeofaproperty(the"subjectproperty"),theProperty
Valueroritsassociate:
i.isengaged,whetherasprincipaloragent,bytheREIT'scounterpartythatintendsorhasagreedto
sellortopurchasefromtheREITthesubjectproperty,inrelationtotheintroductionorreferralofthe
REITtothesubjectpropertyorviceversa
ii.isengagedwhetherasprincipaloragentbytheREITinrelationtotheacquisitionofthesubject
property
iii.actsasabrokerfoethepropertytransactionforafeeor
iv.had,atanytimeduringtheone(1)yearimmediatelybeforethedateoftheagreementforsuch
intended purchase or disposal, been engaged to provide valuation of the subject property to the
REIT'scounterparty(oritsRelatedParties).
1.1ThePropertyValuershallensurethatitsopinionandvaluationisindependentofandunaffectedbyits
businessorcommercialrelationshipwithotherpersons.
1.2ThedirectionsandPrincipalOfficersofthePropertyValuershallcomplywiththeFitandProperRuleas
describedundertheseRules.
Section2.QualificationsRequiredofaPropertyValuer.
a.TheappraisalcompanyshallberegisteredwiththeCommission
b.ThecertifyingofficeroftheappraisalcompanyshallbeaprofessionalappraiserdulylicensedbytheDTI
ortheProfessionalRegulatoryBoardofRealEstateServicepursuanttoR.A.9646andanofficer/member
ofgoodstandinganyregisteredassociationofappraisalcompanies
c. At the time of applicati0on, the company shall have a minimum experience of five (5) years in the
appraisalbusiness
d.Itshallhaveprofessionalservicesforatleastone(1)commercialbankandtwo(2)publiccompanies
e. The appraisal company or any of its directors/officers shall have no adverse judgement on any
administrative,civilorcriminalcaseinvolvingitsappraisalbusiness
f.Itshallbesolventandinsoundfinancialcondition.
Theforegoingqualificationsshallbesupportedbyappropriatedocuments.
Section3.GeneralObligationsofaPropertyValuer.
3.1The Property Valuer shall value all the real estate of the REIT, on the basis of a full valuation with physical
inspectioninrespectofthesiteoftherealestateandaninspectionofthebuilding(s)andfacilitieserectedthereon
onceayear,andinanyeventforthepurposesofissuanceofnewInvestorSecurities.ThePropertyValuershall
alsoproduceavaluationreportonrealestatetobeacquiredorsoldbytheREITorwherenewsharesareoffered
bytheREITorinanyothercircumstancesrequiredbytheCommission.Thecontentsofthevaluationreportshall
complywiththeseRules.

Section4.CriteriaforAcceptabilityofthePropertyValuer.
4.1ThePropertyValuershallbeacompanythat:
a.providespropertyvaluationservicesonaregularbasis.
b.CarriesonthebusinessofvaluingrealestateinthePhilippines
c.PossessestherequisitelicensesrequiredunderrelevantPhilippinerulesandregulations
d.IsaccreditedbytheCommission
e.Haskeypersonnelwhopossesstherequisitelicensesandarequalifiedtoperformpropertyvaluations
f.Hassufficientfinancialresourcesatitsdisposaltoenableittoconductitsbusinesseffectivelyandmeet
itsliabilities
g.Hasrobustinternalcontrolsandchecksandbalancestoensuretheintegrityofvaluationreportsandthat
thesereportsareproperlyandprofessionallypreparedinaccordancewithinternationalbestpractices
h.Hasadequateprofessionalinsurancetocoveritsusualrisksand
i.ComplieswiththeFitandProperRuleundertheseRules.
Section5.ValuationReport.
5.1ThePropertyValuershallproduceavaluationreportwhichshallinclude,asaminimum:
a.allmaterialdetailsinrelationtothebasisofvaluationandtheassumptionsused
b.descriptionandexplanationofthevaluationmethodologiesadopted
c. overall structure and condition of the relevant market including an analysis of the supply/demand
situation,themarkettrendandinvestmentactivities
d.theparticularsinrespectofeachproperty,suchas:
i. an address sufficient to identity the property, which shall generally include postal address, lot
numberandsuchfurtherdesignationasisregisteredwiththeappropriategovernmentauthorities
ii.thenatureoftheinteresttheREITholdsintheproperty(e.g.ifitisafreeholdorleasehold,andthe
remainderofthetermifitisaleasehold)
iii.theexistinguse(e.g.shops,offices,factories,residential,etc.)
iv.abriefdescriptionoftheproperty,suchastheageofthebuildingthesitearea,grossfloorarea,
netlettablefloorarea,andthecurrentzoninguse
v.theoptionsorrightsofpreemptionandotherencumbrancesconcerningoraffectingtheproperty
vi.theoccupancyrate
vii.leasecycleduration
viii.leaseexpiryprofile
ix. a summary of terms of any sublease or tenancies, including repair obligation, granted to the
tenantsoftheproperty
x.thecapitalvalueinexistingstateatthedatethevaluationwasperformed
xi.theexistingmonthlyrentalbeforeprofiletaxifthepropertyiswhollyorpartlylettogetherwiththe
amountandadescriptionofanyoutgoingsordisbursementsfromtherent,and,ifmateriallydifferent
, the estimated different, the estimated current monthly market rental obtainable, on the basis that
thepropertywasavailabletoletontheeffectivedateasatwhichthepropertywasvalued
xii.theestimatedcurrentnetyield
xiii.asummaryofanyrentreviewprovisions,wherematerial

xiv.theamountofvacantspace,wherematerial
xv. material information regarding the title of the subject property as contained in the relevant
opinion, and a discussion as to whether any and how the legal opinions have been taken into
considerationinthevaluationoftherelevantpropertyand
xvi.anyothermatterswhichmayaffectthepropertyoritsvalue.
e.particulars[assetoutin(c)]ofanyrealestateforwhichtheREIThasanoptiontopurchase.
f.AletterstartingtheindependentstatusofthePropertyValuerandthatthevaluationreportispreparedon
afairandunbiasedbasis
g.Anexplanationoftherationaleforchoosingtheparticularvaluationmethod,ifmorethanonemethodis
adopted.
5.2WheneveravaluationreportispreparedfortheREIT,thedateofthevaluationreportshallbe:
a.thedatetheREITisvalued,ifsuchreportispreparedforthepurposeofcalculatingtheNetAssetValue
oftheREITor
b.thedatewhichisnotmorethanthree(3)monthsbeforethedateonwhich(i)anofferingdocumentis
issued or (ii) a sale and purchase agreement (or other agreement to transfer legal title) is signed, if the
transactiondoesnotrequireshareholdersapproval.
Section6.TerminationoftheServicesofaPropertyValuer.
6.1TheservicesofthePropertyValuershallbeterminatedafterithasconductedvaluationsoftherealestateof
theREITforthree(3)consecutiveyears.Subjecttoacuringperiodofthree(3)years,theREITmay,however,re
engagetheservicesofsaidpropertyvaluer.
6.2 The Property Valuer shall be subject to removal by notice in writing from the REIT in any of the following
events:
a.thePropertyValuergoesintoliquidation,becomesbankruptorhasareceiverappointedoveritsassists
b.forgoodandsufficientreasontheFundManagerstatesinwritingthatachangeinthePropertyValueris
desirableintheinterestoftheREITshareholdersor
c.thePropertyValuerviolatestheseRulesoranyotherrelevantlaw,ruleorregulation.
6.3 In addition, the services of the Property valuer shall be terminated in all other cases provided for in the
ConstitutiveDocuments.
6.4 Upon the termination or dismissal of the Property Valuer, the REIT shall appoint new Property Valuer that
meetsthequalificationrequirementsundertheseRules.
Rule10Taxes
Section1. Income Taxation of REIT's.A REIT shall be subject to income tax under Chapter IV. Title II of the
NIRC,asamended,onitsTaxableNetIncomeasdefinedintheAct: Provided,ThatinnocaseshallaREITbe
subjecttoaminimumcorporateincometax,asprovidedunderSection27(E)ofthesameCode
Provided, further, That for purpose of computing the taxable net income of a REIT, dividends distributed by a
REITfromitsdistributableincomeasoftheendofthetaxableyearandonorbeforethelastdayofthefifth(5th)
monthfollowingthecloseofthetaxableyearshallbeconsideredaspaidonthelastdayofsuchtaxableyear.
However,aREITshallbesubjecttoincometaxonitstaxablenetincomeasdefinedinChapterIV,TitleIIofthe
NIRC, as amended, instead of its taxable net income as defined in this act, upon the occurrence of any of the
followingevents:
a)Failuretomaintainitsstatusasapubliccompanyasdefinesherein
b)FailuretomaintainthelistedstatusoftheinvestorsecuritiesontheExchangeandtheregistrationofthe
investorsecuritiesbytheCommissionand/or
c)Failuretodistributeatleastninety(90%)percentofitsDistributableIncomeasrequiredherein.
Theaboveevents,however,shallbesubjecttoaThirty(30)daycuringperiodfromthetimeoftheoccurrenceof

the event. Compliance by the REIT within the curing period shall be determined by the Commission and such
determinationshallbeimmediatelycommunicatedtotheBIR.
Section2.CreditableWithholdingTax. Income payments to a REIT shall be subject to a creditable withholding
taxofone(1%)percent.
Section3.TaxonTransferofPropertybyREIT.AnysaleortransferofrealpropertytoaREIT,includingthesale
or transfer of any and all security interest thereto shall be subject to fifty (50%) percent of the applicable DST
imposedundertitleVIIoftheNIRC.
All applicable registration and annotation fees relative or incidental thereto shall be fifty (50%) of the applicable
registrationandannotationfees.
TheincentivesprovidedhereincanavailedbyanunlistedREITprovideditislistedwithanExchangewithintwo
(2)yearsfromtheinitialavailmentoftheincentives.
The fifty (50%) percent of the applicable DST shall be due and demandable together with the applicable
surchargepenaltiesandinterestreckonedfromthedatesuchtaxshouldhavebeenpaidupontheoccurrenceof
anyofthefollowingevents:
a.FailuretolistwithanExchangewithinaperiodtwo(2)yearsfromthedateofinitialavailment
b.FailuretomaintainitsstatusaspubliccompanyasdefinedintheAct
c.FailuretomaintainthelistedstatusoftheInvestorSecuritiesontheExchangeandtheregistrationofthe
investorsecuritieswiththeCommissionand/or
d.Failuretodistributeatleastninety(90%)ofitsDistributableIncomerequiredundertheAct.
Theaboveevents,however,shallbesubjecttoathirty(30)daycuringperiodfromthetimeoftheoccurrenceof
the event. Compliance by the REIT within the curing period shall be determined by the Commission and such
determinationshallbeimmediatelycommunicatedtotheBIR.
Section4.IssuanceandTransferofInvestorSecurities.
a.TheoriginalissuanceofInvestorsecuritiesshallbesubjecttoDSTundertheNIRC,asamended
b. Any sale, barter, exchange or other disposition of listed Investor Securities through the Exchange,
including block sales or cross sales with prior approval from the Exchange shall be subject to the stock
transactiontaximposedundertheNIRC
c. Any sale, barter, exchange or other disposition of listed Investor Securities through the Exchange,
including cross or block sales with prior approval from the Exchange shall be exempt from the DST
prescribedbytheNIRCand
d.AnyinitialpublicandsecondaryofferingofinvestorsecuritiesshallbeexemptfromtheIPOtaximposed
undertheNIRC.
Section5.DividendsPaidbyREITs.CashorpropertydividendspaidbyaREITshallbesubjecttoafinaltaxten
percent(10%)unless
a.thedividendsarereceivedbyanonresidentindividualoranonresidentforeigncorporationentitledto
claim a preferential withholding tax rate of less than ten percent (10%) percent pursuant to an applicable
taxtreatyor
b.thedividendsarereceivedbyadomesticcorporationorresidentforeigncorporation
OverseasFilipinoinvestorsareexemptfromthedividendstaxforseven(7)yearsfromtheeffectivityofthetax
regulationsimplementingtheAct.
Section6.VATonGrossSalesorGrossReceiptsofREITs.
a.Thegrosssalesfromanydisposalofrealpropertyorgrossreceiptsfromtherentalofsuchrealproperty
shallbesubjecttoVAT
b.A REIT shall not be considered as a dealer of securities and shall not be subject to VAT on its sale,
exchangeortransferofsecuritiesformingpartofitsrealestaterelatedassets.
Section7.GeneralApplicationoftheNIRC.UnlessotherwiseprovidedundertheAct,theinternalrevenuetaxes

undertheNIRCshallapply.
Section8.DelistingoftheREITandRevocationofTaxIncentives.ThetaxincentivesgrantedundertheActshall
beipsofactorevokedandwithdrawnasofthedateofthedelistingbecomesfinalandexecutoryintheeventthe
REITisdelistedfromtheExchangewhethervoluntaryorinvoluntaryforfailuretocomplywiththeprovisionsofthe
ActoranyoftheseRules.
Any tax incentive that has been availed of by the REIT thereafter shall be refunded to the Government within
ninety (90) days from the date when the delisting becomes final and executory and the surcharge and penalty
shallapply.ThisshallbewithoutprejudicetothepenaltiestobeimposedbytheBIR.
If the delisting is for causes highly prejudicial to the interest of the investing public such as violation of the
disclosure and related party transactions of the Act or insolvency of the REIT due to mismanagement or
misappropriation,conversion,wastageordissipationofitscorporateassets,theresponsiblepersonsshallrefund
toitsinvestorsatthetimeoffinaldelistingthebookvalue/acquisitioncostoftheirshares.
Rule12MiscellaneousProvisions
Section 1. Corporate Governance. The Property Manager and the Fund Manager shall be subject to the
principlesofcorporategovernanceadoptedbytheCommission.
Section 2. Supplemental Regulations. These rules my be supplemented by relevant regulations which the
Commission,Exchange,BIRandBSPmayfromtimetotimeissue.
Section3.UseofRegistrationFees.TocarryoutthepurposesoftheseRules,theCommissionshallretainand
use fifty percent (50%) of all fees paid to it relative to the establishment of REITs and the registration of their
securitiesinadditiontoitsannualbudget.
Section4.SeparabilityClause.If,foranyreason,anyarticleorprovisionoftheseRulesoranyportionthereofor
applicationofsucharticle,provisionorportionthereoftoanyperson,grouporcircumstanceisdeclaredinvalidor
unconstitutional,theremainderoftheseRulesshallnotbeaffectedbysuchdecision.
Section5.RepealingClause.Allotherrulesandregulationsorpartsthereof,inconsistentwiththeforegoingrules
andregulationsarerepealed,amendedormodifiedaccordingly.
Section6.EffectivityClause.TheseRulesshalltakeeffectfifteen(15)daysafteritscompletepublicationinthe
OfficialGazetteorinatleasttwo(2)newspapersofgeneralcirculationinthePhilippines.
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