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 Investment Trust, the
followingImplementingRulesandRegulationsareherebypromulgated.
Rule1TitleofRules
TheseRulesshallbereferredtoasthe"ImplementingRulesandRegulationsofRepublicActNo.9856,otherwiseknownastheReal
EstateInvestmentTrust(REIT)Actof2009"orthe"REITRules."
Rule2Objectives
These Rules are promulgated consistent with the declared policy of the State to promote the development of the capital market,
democratize wealth by broadening the participation of Filipinos in the ownership of real estate in the Philippines, use the capital
marketasaninstrumenttohelpfinanceanddevelopinfrastructureprojects,andprotecttheinvestingpublic.
The implementation and application of these Rules shall adhere as closely as possible to the attainment of the foregoing policy
objectives.
Rule3DefinitionofTermsUsedintheRules
WhenusedintheseRulesandRegulation,theterm
a. "Act" means Republic Act No. 9856 otherwise known as the Act Providing the Legal Framework for Real Estate
InvestmentTrust.
b. "Adviser" means a lawyer, accountant, auditor, financial or business consultant, and such other persons rendering
professionaladvisoryservicestoREIT.
c."Affiliate"meansacorporationthatdirectlyorindirectly,throughoneormoreintermediaries,iscontrolledby,orisunderthe
commoncontrolof,anothercorporation,whichtherebybecomesitsparentcorporation.
d."Associate"ofapersonincludes:
i.Anyrelativeofsuchpersonwithinthefourth(4th)degreeofconsanguinityoraffinityand
ii.Anycompanyinwhichhe/sheandhis/herrelativewithinthefourth(4th)degreeofconsanguinityoraffinity,directlyor
indirectly,hasaninterestoftwentyfivepercent(25%)ormore.
e."BIR"meanstheBureauofInternalRevenue.
f."BSP"meanstheBangkoSentralngPilipinas.
g."CashEquivalentItems"meansinstrumentsorinvestmentsthatarehighlyliquidandmarketableandareconsideredgood
as cash, including savings and/or time deposits (peso or foreign currency denominated) maintained with any duly licensed
universal,commercialorthriftbankthathaspassedtheaccreditationprocessoftheFundManager.
h."CodeofCorporateGovernance"meanstheRevisedCodeofCorporateGovernanceissuedbytheCommissionon22June
2009andmadeeffectiveon15July2009andasmaybeamendedbytheCommission.
i."Commission"or"SEC"meanstheSecuritiesandExchangeCommissionofthePhilippines.
j."ConstitutiveDocuments"meanstheArticlesofIncorporationandByLawsofaREIT.
k."Control"existsinfavorofaparentcorporationwhenithasthepowertodirectorgovernthefinancialandoperatingpolicies
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,itcanclearlybedemonstratedthatsuchownershipdoesnotconstitutecontrol.Controlalsoexistsevenwhen
theparentownsonehalf(1/2)orlessofthevotingpowerofanenterprisewhenthereispower:
i.Overmorethanonehalf(1/2)ofthevotingrightsbyvirtueofanagreementwithinvestors
ii.Todirectorgovernthefinancialandoperatingpoliciesoftheenterpriseunderastatuteoranagreement
iii.Toappointorremovethemajorityofthemembersoftheboardofdirectorsorequivalentgoverningbodyor
iv.Tocastthemajorityvotesatmeetingsoftheboardofdirectorsorequivalentgoverningbody.
l."CorporationCode"referstoBatasPambansaBilang68,otherwiseknownastheCorporationCodeofthePhilippines.
m."DepositedProperty"meansthetotalvalueoftheREIT'sassetsreflectingthefairmarketvalueofthetotalassetsheldby
theREIT.
n."DistributableIncome"meansnetincomeasadjustedforunrealizedgainsandlosses/expensesandimpairmentlosses,and
other items in accordance with internationally accepted accounting standards. Distributable income excludes proceeds from
thesaleoftheREIT'sassetsthatarereinvestedintheREITwithinone(1)yearfromthedateofthesale.
o."DST"meansDocumentaryStampTaximposedunderTitleVIIoftheNIRC
p."Exchange"meansanyentityregisteredwiththeCommissionasastockexchangepursuanttotheSecuritiesRegulation
Code.
q."FundManager"referstothepersonengagedbytheREITtoperformsuchfunctionsenumeratedintheseRules.
r."IncomegeneratingRealEstate"meansrealpropertywhichisheldforthepurposeofgeneratingaregularstreamofincome
suchas,butnotlimitedto,rentals,tollfees,user'sfees,ticketsales,parkingfeesandstoragefees.1avvphi1
s. "Independent Director" means a director who has the qualifications and none of the disqualifications of an independent
directorasspecifiedintheSecuritiesRegulationCodeanditsImplementingRulesandRegulations.
t."InvestibleFunds"referstofundsoftheREITthatcanbeplacedininvestmentvehiclesotherthanincomegeneratingreal
estate,asallowedundertheseRules.
u."Investor"meanstheownerofInvestorSecurities.
v."InvestorSecurities"meanssharesofstockissuedbyaREITorderivativesthereof.
w."ManagedFunds"meansanyarrangementwherebyfundsaresolicitedfromtheinvestingpublicandpooledforthepurpose
of investing in securities duly registered and/or approved by the appropriate regulatory agency of the government for

investmentand/orreinvestmentbytheREIT.
x."MaterialContract"referstoanagreementorarrangementwheretheamountinvolvedisatleastfivepercent(5%)ofthe
Deposited Property of the REIT or which is not entered into in the ordinary course of business of the REIT: Provided,
however,ThatthefollowingshallbedeemedaMaterialContractregardlessoftheamount:
i.RelatedPartyTransactionsasdefinedintheseRules
ii.AgreementsbetweentheREITandFundManager
iii.AgreementsbetweentheREITandPropertyManager
iv. Agreements between and among shareholders relating to the transferability of the shares of stock of the REIT,
control of the REIT and voting rights over shares of stock of the REIT, such as but not limited to, voting trust
agreements,poolingagreements,jointventureagreements,optionagreements,andagreementsgrantingrightsoffirst
refusalorconversionrights
v.AnyacquisitionordispositionofrealestatebytheREIT
vi.ContractsrelatingtoinvestmentsoftheREIT
vii.Anycontractcreatingmortgages,encumbrances,liensorrightsontherealestateoftheREIT
viii.ContractofanynaturethatlimitsthedeclarationordistributionofdividendsbytheREIT
ix.Anycontractrelatingtojointventure,spinoff,consolidationormerger,takeoverorchangeinControlinvolvingthe
REIT
x.Anycontractthatmaybeexpectedtomateriallyaffectthemarketactivityand/orthepriceoftheInvestorSecurities.
y. "Net Asset Value" or "NAV" means the adjusted net asset value reflecting the fair market values of total assets and
investible funds held by the REIT, less total liabilities. NAV per share shall be computed by dividing NAV by the total
outstandingsharesoftheREIT.
z."NetIncome"meansnetincomeasdeterminedunderthePhilippineFinancialReportingStandards(PFRS).
aa."NIRC"meanstheNationalInternalRevenueCodeof1997,asamended.
bb."OverseasFilipinoInvestor"referstoanindividualcitizenofthePhilippineswhoisworkingabroad,includingonewhohas
retainedorreacquiredhisPhilippinecitizenshipunderRepublicActNo.9225,otherwiseknownasthe"CitizenshipRetention
andReacquisitionActof2003".
cc."PAS"meansPhilippineAccountingStandards.
dd. "Parent" means a corporation which has control over another corporation, directly or indirectly, through one or more
intermediaries.
ee."PFRS"meansPhilippineFinancialReportingStandards.
ff. "Principal Officer" means the chairman of the board of directors, president, chief executive officer, chief operating officer,
treasurer,chieffinancialofficer,corporatesecretary,vicepresident,executivevicepresident,seniorvicepresident,compliance
officer,chiefaccountingofficer,chiefinvestmentofficerandtheirequivalentpositions,includingconsultantswithsimilarrankor
position.
gg."PropertyValue"meansanindependententityengagedbyaREITtovalueitsrealestateinaccordancewiththeseRules.
hh. "Principal Stockholder" means a stockholder who is, directly or indirectly, the beneficial owner of more than ten percent
(10%)ofanyclassofInvestorSecuritiesoftheREIT.
ii."PublicShareholder"meansashareholderofaREITotherthanthefollowingpersons(nonpublicshareholders):
i.TheSponsor/PromoteroftheREIT
ii.Adirector,PrincipalOfficerorPrincipalStockholderoftheSponsor/PromoteroftheREIT
iii.Adirector,PrincipalOfficerorPrincipalStockholderoftheREIT
iv.Anassociateofadirector,PrincipalOfficerorPrincipalStockholderoftheREIToritsSponsor/Promoter
v.ARelatedCorporationtotheREIToritsSponsor/Promoterand
vi. Any person who holds legal title to the shares of stock of the REIT for the benefit of another for the purpose of
circumventingtheprovisionsofthisAct.
jj. "Property Manager" refers to a professional administrator of real properties who is engaged by the REIT to provide the
propertymanagementservicesdefinedundertheseRules.
kk."RealEstateInvestmentTrust"or"REIT"isastockcorporationestablishedinaccordancewiththeCorporationCodeofthe
Philippines and the rules and regulations promulgated by the Commission principally for the purpose of owning income
generating real estate assets. For purposes of clarity, a REIT, although designated as a "trust", does not have the same
technical meaning as "trust" under existing laws and regulations but is used herein for the sole purpose of adopting the
internationallyaccepteddescriptionofthecompanyinaccordancewithglobalbestpractices.
ll. "Real Property" shall have the same definition as "Immovable Property" under Article 415 of the Civil Code of the
Philippines.Realestate,whenusedinthisAct,shallhavethesamemeaningasrealproperty.
mm."REITPlan"referstotheplan,includingitsamendments,oftheREITregisteredwithandapprovedbytheCommission.
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.Adirector,PrincipalShareholderorPrincipalOfficeroftheSponsor/PromoteroftheREITFundManagerorProperty
Manager,orassociateofanysuchpersonsand
vii.RelatedCorporationtotheREIT,theFundManagerorthePropertyManager.
qq. "Securities Regulation Code" or "SRC" refers to Republic Act No. 8799, otherwise known as the Securities Regulation
Codeof2000,anditsImplementingRulesandRegulationsasamended.
rr. "Sponsor/Promoter" means any person who, acting alone or in conjunction with one or more other persons, directly or
indirectly,contributescashorpropertyinestablishingaREIT.
ss."Subsidiary"meansacorporationmorethanfiftypercent(50%)ofthevotingstockofwhichisownedorcontrolled,directly
orindirectly,throughoneormoreintermediaries,byanothercorporation,whichtherebybecomesitsparentcorporation.
tt. "Synthetic Investment Products" are derivatives and other securities created exclusively out of one or more financial
instrumentstosimulatethereturnsoftheunderlyingassetsorindicesofassetvalues,including,butnotlimitedtowarrants,
options, interest rate derivatives, currency derivatives, equity derivatives and credit derivatives such as creditlinked notes,
collateralizeddebtobligations,totalreturnswaps,creditspreadoptionsandcreditdefaultoptions.
uu."TaxableNetIncome"meansthepertinentitemsofgrossincomespecifiedinSection32oftheNIRC,lessallallowable
deductionsenumeratedinSection34,oftheNIRC,lessthedividendsdistributedbyaREIToutofitsDistributableIncomeas
oftheendofthetaxableyearas:(a)dividendstoownersofthecommonsharesand(b)dividendstoownersofthepreferred
sharespursuanttotheirrightsandlimitationsspecifiedintheArticlesofIncorporationoftheREIT.
Rule4RealEstateInvestmentTrust
Section1.InvestmentintheREIT.
1.1InvestmentinaREITshallbebywayofsubscriptiontoorpurchaseofsharesofstockoftheREIT.
1.2 A REIT may provide in its Articles of Incorporation different classes of shares of stock enumerating therein their respective
features.
1.3NosharesofstockoftheREITshallbeofferedforsubscriptionorsaletoPublicShareholdersexceptinaccordancewithaREIT
Plan registered with and approved by the Commission. The REIT Plan shall take the place of a prospectus. It shall contain the
followinginformation:
a.investmentpolicy,restrictionsandstrategyoftheREIT
b.discussiononthebusinessplanforpropertyinvestmentandmanagementcoveringthescopeandtypeofinvestmentsmade
orintendedtobemadebytheREIT,includingthetype(s)ofrealestate(e.g.leisure,residential,commercial,orindustrial)
c.generalcharacterandcompetitiveconditionsofallrealestatenowheldorintendedtobeacquiredbytheREITandhow
suchrealestatemeetstheestablishedcriteriaforselection
d.natureandrisksofmakingpropertyinvestmentsineachoftherelevantlocations,including:
i.demographics
ii.stateoftheeconomy,economicrisksandforeignexchangerisk
iii.politicalrisks
iv.legalrisksandtaxconsiderations
v.policiesthataffectpropertyinvestmentsandpropertysales
vi.overviewofthepropertymarket
vii.analysisofthespecificpropertysectorandthecompetitivedynamicsintherentalmarket
viii.operationalrequirementand
ix.rulesandregulationsgoverningpropertyownershipandtenancymatters
e.termsandconditionsofthearrangementsoragreementsthathavebeenenteredintobytheREITforittoownlegaland
beneficialtitleoverspecificproperty,andthebenefitsandrisksofsucharrangementsincludingbutnotlimitedto,anyagrarian
relatedissues,ifany
f. transaction history of the relevant property in the three (3) years immediately preceding the date of the valuation report
includedintheREITPlan
g.anyproposedprogramwithtimetableforrenovationorimprovementtotherealestate,includingtheestimatedcoststhereof
andthemethodoffinancingtobeused
h. the operating date of each of the real estate, including the occupancy rate, number of tenants and its mix in terms of
occupation or business, principal provisions of the leases, average annual rental per square meter, and schedule of lease
expirationsforthenextthree(3)years
i.theborrowingpolicyandthemethodorproposedmethodofoperatingandfinancingtherealestateinvestmentsoftheREIT
j.whererealestatetobeacquiredaretobefinanced(whollyorinpart)throughborrowings,detailsoftheborrowingsmustbe
disclosedincluding,butnotlimitedto,thesource,type,term/periodandnatureoftheborrowingsandtheinterestratetobe
paidbytheREITandtherisksinvolvedwithrespecttoborrowings
k.themeasuresinplacetomitigateorminimizerisksrelatingtotheinvestmentandmanagementofrealestateownedbythe
REIT
l.thedividendpolicy
m.theinsurancearrangementfortheassetsoftheREIT
n.theexitstrategyintheeventofdivestment(includingtheexitfromanyjointownershiparrangement),factorsandriskswhich
mayimpactoractasanimpedimenttoanexit,andthecontingencyplan
o.detailsoftransactionsoragreementsenteredintowithrelatedparties
p.fullparticularsofthenatureandextentoftheinterest,ifany,ofanydirectoroftheREIT,theFundManager,theProperty
ManageroranyRelatedPartiestotheREIT,inthepropertyownedorproposedtobeacquiredbytheREITandwherethe
interestofsuchadirectorconsistsinbeingapartnerinafirm,thenatureandextentoftheinterestinthefirm,withastatement
ofallsumspaidoragreedtobepaidtohimorthefirmforservicesrenderedtotheREIT
q.functions,dutiesandresponsibilitiesofthePropertyManagerandtheFundManagerand,whereapplicable,shareholdingof
thePropertyManagerand/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,totalassetsundermanagement,staffstrength,resources,internalcontrolsandriskmanagementsystem
s.informationonthedirectorsandPrincipalOfficersofthePropertyManager,highlightingtheacademicand/orprofessional
qualificationaswellasexperiencepossessedbytherespectivepersonnel
t. corporate information on the Fund Manager, including number of years in fund management, total assets under
management,staffstrength,internalcontrolsandriskmanagementsystem
u. information on the directors and Principal Officers of the Fund Manager, highlighting the academic and/or professional
qualificationaswellasexperiencepossessedbytherespectivepersonnel
v.detailsonsubstantialfeestobepaidbytheREIT,suchaspropertymanagementfeesandfundmanagementfees.Thefees
paid to the Property Manager and the Fund Manager must be clearly stated and shall include: (i) the percentage rate to be
paidbytheREIT(ii)thebasisonwhichthepropertymanagementfeeiscalculatedand(iii)anillustrationonhowthefeeis
calculated
w.names,designationandthedirectandindirectshareholdingsintheREITofPromoters,PrincipalShareholders,directors,
PrincipalOfficersandprincipalofficersofthePropertyManagerandtheFundManager
x.disclosureonhowtheproceedsofthepublicofferingandanyotherfundsraisedinconnectionwiththepublicofferingwillbe
utilizedwithtimetableand
y. proforma financial statements which shall include information on Net Asset Value and Net Asset Value per share before
listingandaftertheproposedpublicoffering.
1.5Inordertobevalid,anymaterialamendmenttotheREITPlanshallbeapprovedbytheCommission.AnyamendmenttothePlan
shallbeeffectiveonlyuponcompliancewiththerequirementsrelativetosaidamendment/s.
Section2.RegistrationandListing.ThesharesofstockoftheREITshallberegisteredwiththeCommissioninaccordancewiththe
SRCandlistedinaccordancewiththerulesoftheExchange.
Section3.NationalityRequirement.AREITthatownslandlocatedinthePhilippinesmustcomplywithforeignownershiplimitations
imposedunderPhilippinelaw.
Section4.DividendDistribution.AREITshalldistributeannually,atotalofatleastninetypercent(90%)ofitsDistributableIncome
asdividendstoitsshareholders,notbelaterthanthelastworkingdayofthefifth(5th)monthfollowingthecloseofthefiscalyearof
theREITsubjecttothefollowing:
(a)ThedividendshallbepayableonlyfromtheunrestrictedretainedearningsoftheREITasprovidedforunderSection
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, including the unanimous vote of all Independent
DirectorsoftheREITprovidedfinally,oncethepurposeoftherestrictionisaccomplished,theREITshallimmediately
canceltherestrictionanddistributethecorrespondingretainedearningsuponmajorityvoteofthemembersoftheboard
ofdirectors.
(b) The percentage of dividends with respect to any class of stock to be received by the Public Shareholders to the total
dividendswithrespecttothatclassofstockdistributedbytheREITfromoutofitsDistributableIncomemustnotbelessthan
suchpercentageoftheiraggregateownershipofthetotaloutstandingsharesoftheREITwithrespecttothatclassofstock.
Any structure, arrangement or provision which would have the effect of diminishing or circumventing in any form this
entitlementtodividendsshallbevoidandofnoforceandeffect.
(c) The income distributable as dividend by the REIT shall be based on the audited financial statements for the recently
completed fiscal year prior to the prescribed distribution. The audited financial statements of the REIT shall present a
computationofitsdistributabledividendtakingintoconsiderationrequirementsundertheprovisionsoftheActandthisRule.
However, the audited financial statements shall not be required before the REIT can distribute quarterly and/or semiannual
dividends provided, the REIT has reasonable grounds to believe that the maximum dividends that it may distribute in such
fiscal year shall not 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 requirements of the
CorporationCode,thedeclarationofstockdividendsmustbeapprovedbyatleastamajorityoftheentiremembershipofthe
board of directors, including the unanimous vote of all independent Directors of the REIT and subject to approval of the
Commission within five (5) working days from receipt of the request for approval. If the Commission does not act on said
requestwithinsuchperiod,thesameshallbedeemedapproved.
(e)DistributableincomeexcludesproceedsfromthesaleofREIT'sassetsthatarereinvestedbytheREITwithinone(1)year
fromthedateofthesale.Gainfromthesaidsaleshall,however,formpartofthedistributableincome.
(f)TheincomedistributebytheREITshallbeadjustedbydeductingthefollowingunrealizedornonactualgainsandlosses:
(i)Unrealizedforeignexchangegains,exceptthoseattributabletocashandcashequivalents
(ii)Fairvalueadjustmentorthegainsarisingfrommarkedtomarketvaluationwhicharenotyetrealized
(iii)Fairvalueadjustmentofinvestmentpropertyresultingtogain
(iv)Theamountofrecognizeddeferredtaxassetthatreducedtheamountofincometaxexpenseandincreasedthenet
incomeandretainedearnings,untilrealized
(v)Adjustmentduetoadeviationfromanyoftheprescribedaccountingstandardwhichresultstogain
(vi) Other unrealized gains or adjustments to the income as a result of certain transactions accounted for under the
PhilippineFinancialReportingStandards.
(g) Nonactual expenses/losses that are allowed to be added back to distributable income shall be limited to the following
items:
(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)
maintain its status as a listed company and (b) upon and after listing, have at least one thousand (1,000) Public
Shareholderseachowningatleastfifty(50)sharesofanyclassofshares,andwho,intheaggregate,ownatleastone

third(1/3)oftheoutstandingcapitalstockoftheREIT.
A REIT shall, from the time of incorporation, issue shares to, or record the transfer of all its shares into the name of
shareholders,investorsor,securitiesintermediaryintheformofuncertificatedshares.Itshallengagetheservicesofaduly
licensedtransferagenttomonitorsubsequenttransferoftheshares.Saidregistrarshallensurethatthesharesaretraceable
to the names of the shareholders or investors and for their own benefit and not for the benefit of any of the nonpublic
shareholders.
Thesharesmayberegisteredunderanomineeandthenomineeshallmakeavailabletothetransferagentthenamesofthe
shareholdersinsuchfrequencyasmaybenecessaryforthetransferagenttoperformitsbasicfunctions.
Compliance with the minimum public ownership requirement under this section shall be duly certified by the transfer agent
uponlisting,asofrecorddateforanydividenddeclarationoranycorporateactionrequiringshareholderapprovalandother
relevanttimesasmayberequiredbytheCommission.
b.Capitalization. A REIT shall have a minimum paidup capital of Three Hundred Million Pesos (Php300,000,000.00) at the
timeofincorporationwhichcaneitherbeincashand/orproperty.
c.IndependentDirectors.Atleastonethird(1/3)oratleasttwo(2),whicheverishigher,oftheboardofdirectorsofaREIT
shallbeindependentdirectors.
d.OrganizationandGovernance.Asapubliccompany,theREITshallhavesuchorganizationandgovernancestructurethat
isconsistentwiththeRevisedCodeofCorporateGovernanceandpertinentprovisionsoftheSRCanditsIRR.TheREITshall
holdsuchmeetingsasprovidedforinitsConstitutiveDocumentspursuanttotheCorporationCode.
5.2ExecutiveCompensation.ThetotalannualcompensationofalldirectorsandPrincipalOfficersoftheREITshallnotexceedten
percent(10%)ofthenetincomebeforeregularcorporateincometaxoftheREITduringtheimmediatelyprecedingtaxableyear,and
shallbegovernedbythedisclosurerequirementsofPAS24.
5.3FundManagerandPropertyManagerFees.TheREITshallengageaFundManagerandaPropertyManagerinaccordancewith
theseRules.ThefeesreceivedbytheFundManagerandthePropertyManagerfromtheREITshallnotexceedonepercent(1%)of
theNetAssetValueoftheAssetsundertheirrespectivemanagement.
Section6.Functions of the REIT. Unless otherwise stated in these Rules, the REIT shall have all of the powers of a corporation
undertheCorporationCode,andshallperformallofthefunctionsofacorporation,exceptthoseexpresslydelegatedunderthese
RulestothefundManagerandtothePropertyManager,andthosethatarenecessarysuchasbutnotlimitedtothefollowing:
a.appointaFundManager,aPropertyManagerandaPropertyValuer
b.ensurethatthefinancialandeconomicaspectsoftheREITareprofessionallymanagedintheinterestoftheshareholders
andcreditors.
c.formulatetheannualinvestmentstrategyandpolicyoftheREITinaccordancewiththeREITPlan
d.determinetheannualborrowinglimitoftheREIT,inaccordancewiththeREITPlan
e.determinetheacquisitionanddispositionplanofrealestatepropertiesinaccordancewiththeinvestmentobjectiveindicated
intheREITPlan
f. implement appropriate policies and conduct due diligence reviews such that investments are made only after careful and
diligentinvestigationsbytheREIT
g.formulatedividendpaymentschedulesoftheREIT
h.maintainorcausetobemaintainedproperbooksandrecordsoftheREITandcausethepreparationoftheREIT'sfinancial
statements
i.ensurethatalldocumentsinrelationtotheREIT(excludingdocumentscontainingcommerciallysensitiveinformation)are
madeavailableforinspectionbytheshareholdersandcreditorsoftheREITinthePhilippines,duringnormalofficehours,at
theplaceofbusinessoftheREITandensurethatcopiesofsuchdocumentsareavailableuponrequestbyanyshareholderor
creditoruponpaymentofareasonablefee
j. ensure compliance with any applicable laws, rules, codes or guidelines issued by governmental departments, regulatory
bodies,exchangesoranyotherrelevantorganizationsregardingtheactivitiesoftheREIToritsadministrationand
k.maintainandimplementinvestorrelationsprocedureswhetheronlineorotherwisetohandlequeriesandcomplaints.
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 seventyfive
percent(75%)oftheDepositedPropertyoftheREITshallbeinvestedin,orconsistof,incomegeneratingrealestate.
DepositedPropertythatshouldbeinvestedinIncomegeneratingRealEstatelocatedinthePhilippinesshallinnocase
belessthan35%oftheDepositedProperty.
b.AREITmayinvestinincomegeneratingrealestatelocatedoutsideofthePhilippinesProvided,thatsuchinvestmentdoes
not exceed forty percent (40%) of its Deposited Property and only upon special authority from the Commission. The
Commissioninissuingsuchauthorityshallconsider,amongothers,satisfactoryproofthatthevaluationofassetsisfairand
reasonable.
c. An investment in real estate may be by way of direct ownership or a shareholding in a domestic special purpose vehicle
constitutedtohold/ownrealestate,subjecttotheconditionsprovidedundertheseRules.
d.Acquisitionofarealestateshallincludetheownershipofallrights,interestsandbenefitsrelatedtotheownershipofthereal
estate.
e.TherealestatetobeacquiredbytheREITshouldhaveagoodtrackrecordforthree3yearsfromdateofacquisition.
1.2Realestaterelatedassets,wherevertheissuers,assets,orsecuritiesareincorporated,located,issued,ortraded.
1.3EvidenceofindebtednessoftheRepublicofthePhilippinesandotherevidenceofindebtednessorobligations,theservicingand
repayment of which are fully guaranteed by the Republic of the Philippines, such as, but not limited to, treasury bills, fixed rate
treasurynotes,retailtreasurybonds,(denominatedeitherinPhilippineorinforeigncurrency)andforeigncurrencylinkednotes.
1.4Bondsandotherevidenceofindebtednessissuedby:
a. the government of any foreign country with which the Philippines maintains diplomatic relations, with a credit rating
obtainedfromareputablecreditratingagencyoracreditratingagencyacceptabletotheCommissionthatisatleasttwo

(2)notcheshigherthanthatofROPbondsand
b. supranationals (or international organizations whose membership transcends national boundaries or interests, e.g.
InternationalBankforReconstructionandDevelopment,AsianDevelopmentBank).
1.5CorporatebondsofnonpropertyprivatelyowneddomesticcorporationsdulyregisteredwiththeCommissionwithacurrentcredit
ratingofatleast"A"byanaccreditedPhilippineratingagency.
1.6 Corporate bonds of a foreign nonproperty corporation registered in another country provided that the said bonds are duly
registeredwiththeCommissionandtheforeigncountrygrantsreciprocalrightstoFilipinos.
1.7CommercialpapersdulyregisteredwiththeCommissionwithacurrentinvestmentgradecreditratingbasedontheratingscaleof
anaccreditedPhilippineratingagencyatthetimeofinvestment.
1.8 Equities of a nonproperty company listed in a local or foreign stock exchange, provided that these stocks shall be issued by
companiesthatarefinanciallystable,activelytraded,possessgoodtrackrecordofgrowthandhavedeclareddividendsforthepast
three(3)years.
1.9CashandCashEquivalentItems.
1.10CollectiveinvestmentschemesdulyregisteredwiththeCommissionororganizedpursuanttotherulesandregulationsofthe
BSPprovidedhoweverthat:(i)thecollectiveinvestmentschemesmusthaveatrackrecordofperformanceatparwithorabovethe
medianperformanceofpooledfundsinthesamecategoryasappearingintheprescribedweeklypublicationoftheNetAssetValue
PerUnitoftheCollectiveInvestmentSchemeunitsand(ii)newcollectiveinvestmentschemesmaybeallowedprovidedthatitsfund
managerhasatleastathree(3)yeartrackrecordinmanagingpooledfunds.
1.11OffshoremutualfundswithratingsacceptabletotheCommission.
1.12InvestmentsoftheREITshallberecognizedandmeasuredinitsfinancialstatementsinaccordancewiththerequirementsof
thePFRSandtheapplicableinterpretationsoranyamendmentsthereto,asfollows:
a.InvestmentProperty(PAS40andrelatedstandards)
b.FinancialAssets(PAS39,PFRS7andrelatedstandards)
c.InvestmentsinAssociates(PAS28)
d.InvestmentsinSubsidiaries(PAS27)
e.InterestsinJointVentures(PAS31)
f.NoncurrentAssetsHeldforSaleandDiscontinuedOperations(PFRS5)
g.Leases(PAS17).
1.12SyntheticInvestmentProducts,providedthat:(i)SyntheticInvestmentProductsshallnotconstitutemorethanfivepercent(5%)
oftheInvestibleFundsoftheREIT,(ii)theREITshallavailofsuchSyntheticInvestmentProductssolelyforthepurposeofhedging
riskexposuresoftheexistinginvestmentsoftheREIT(iii)theSyntheticInvestmentProductsshallbeaccountedforinaccordance
with PFRS (iv) the Synthetic Investment Products shall be issued by authorized banks or nonbank financial institutions in
accordance with the rules and regulations of the BSP and/or the SEC and (iv) the use of Synthetic Investment Products shall be
disclosedintheREITPlanandunderspecialauthorityfromtheSEC.
Section2.PropertyDevelopment.AREITshallnotundertakepropertydevelopmentactivitieswhetheronitsown,inajointventure
with others, or by investing in unlisted property development companies, unless: (i) it intends to hold in fee simple the developed
propertyforatleastthree(3)yearsfromdateofcompletion(ii)thepurchaseagreementofthesaidpropertyismadesubjecttothe
completionofthebuildingwithpropercoverforconstructionrisks(iii)thedevelopment/constructionofrealstateshallbecarriedout
oftermswhichthebestavailablefortheREITandwhicharenolessfavorabletotheREITthananarm'slengthtransactionbetween
independentpartiesand(iv)theprospectsfortherealestateuponcompletioncanbereasonablyexpectedtobefavorable.
The total contract value of property development activities undertaken and investments in uncompleted property developments
shouldnotexceedtenpercent(10%)oftheDepositedPropertyofREIT.
Section3.LeaseholdProperty.Wherealeaseholdpropertyisacquired,theconsentoftheregulatoryauthoritytotransferthelease
shallbeobtained.Theleaseshallberegisteredlease.
Section4.Encumbrances.Unlessotherwisedisclosed,allrealestateshallbefreefromallencumbrancesatthetimeofacquisition,
exceptforchargesenteredbyfinancialinstitutionsinrelationtoloanfacilitiesextendedfortheconstructionoracquisition,exceptfor
chargesenteredbyfinancialinstitutionsinrelationtoloanfacilitiesextendedfortheconstructionoracquisitionoftherealestate.
Section5.Insurance.AllrealestateacquiredbyREITshallbeinsuredfortheirfullreplacementvalue,includinglossofrental,where
appropriate,withinsurancecompaniesapprovedbytheFundManager.
Section6.SingleEntityLimit. Not more than fifteen percent (15%) of the Investible Funds of the REIT may be invested any one
issuer'ssecuritiesoranyonemanagedfund,exceptwithrespecttothePhilippinegovernmentsecuritieswherethelimitistwenty
fivepercent(25%).
Section 7. Foreign Assets. A REIT may invest in local or foreign assets, subject to the terms of its Constitutive Documents and
specific provisions of these Rules. Where an Investment in a foreign real estate asset is made, the REIT should ensure that the
investment complies with all the applicable laws and requirements in that foreign country, such as , but not limited to foreign
ownershiprestrictions,ifany,andrequisitesofhavinggoodandvalidtitletotherealestate.1avvphi1
Section8.AggregateLeverageLimit. The total borrowing and deferred payments of a REIT should not exceed thirty five percent
(35%)ofitsDepositedPropertyProvided,however,thatthetotalborrowingsanddeferredpaymentsofaREITthathasapublicity
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,borrowfortheREITfromanyofthefundsunderitsmanagement.
Section 9. Related Party Transactions. Any contract or amendment thereto, between the REIT and Related Parties, including
contractsforservices,shallcomplywiththefollowingminimumrequirements:
a. Full, fair, timely and accurate disclosures on the identity of the parties, their relationship with the REIT, and other
importanttermsandconditionsofthetransactionhavebeenmadetotheExchangeandtheCommission
b.Beonfairreasonableterms,includingthecontractprice
c. Approved by at least a majority of the entire membership of the board directors, including the unanimous vote of all
independentdirectorsoftheREIT
d. Accompanied by a fairness opinion by an independent appraiser done in accordance with the valuation methodology
prescribedbytheCommission,inthecaseofanacquisitionordispositionofrealestateassetsandpropertyorshareswapsor
similartransactionsand

e.AnyothermatterthatmaybemateriallyrelevanttoaprospectiveinvestorindecidingwhetherornottoinvestintheREIT.
Section10.Valuation.AfullvaluationofaREIT'sassetsshallbeconductedbyanindependentPropertyValuer,dulyaccreditedby
theCommission,atleastonceayear.NOvaluershallvaluethesameREITformorethanthree(3)consecutiveyears.Subjecttoa
curing period of three (3) years, the REIT may, however, reengage the services of said property valuer. The Valuation Report,
includingthestandardsofassetvaluationandvaluationmethodologyshallbedisclosedintheAnnualReportoftheREIT.
Section 11. Records. All procedures and processes followed, and decisions made in relation to whether or not to invest in a
particularpropertyshallbefully,propertyandclearlydocumentedbytheREIT,theFundManagerandPropertyManager,asmaybe
applicable.
Section12.ReportorialandDisclosureRequirements.
12.1Requirements.TheREITshallcomplywiththereportorialanddisclosurerequirementsprescribedbytheCorporationCode,the
SRCandtherelevantExchange.TheBIRshalllikewisebefurnishedcopiesofthereportshereinprescribed.Attheminimum,the
REITshalldisclosethefollowinginformationinitsAnnual,QuarterlyCurrentReport:
a.MaterialContractsasdefinedunderRule3(v)
b.BreachoftheborrowinglimitofREITandhowandwhentoaddresssaidbreach
c.InvestmentofREIT
d.AproposedchangeintheFundManager,PropertyManager,ValuerorauditoroftheREIT,andthereasonstherefore
e.ValuationoftherealestatepropertiesoftheREIT,includingthevaluationmethodologyusedtherefore
f.MaterialchangesintheincomestreamoftheREIT
g.MaterialchangesintheREIT'sfinancialforecast
h.AnyfeereceivedbyanypartyrelatingtotheacquisitionordispositionoftherealestateoftheREIT
i.Givingorreceivinganoticeofintentiontoundertakeamerger,consolidation,jointventure,takeoverorspinoffinvolvingthe
REIT
j.AnymodificationoftherightsoftheholdersofanyclasssecuritiesissuedbytheREITandthecorrespondingeffectofsuch
modificationupontherightsoftheholders
k.Anydeclarationofcashdividend,stockdividend.PropertydividendandpreemptiverightsbytheREIT
l.AppointmentofreceiverorliquidatorfortheREIT
m.Lossesorpotentiallosseswhichamounttoatleast(5%)ofthevalueoftheDepositedPropertyoftheREIT
n.Occurrenceofanyeventofdissolutionwithdetailsinrespectthereto
o.ActsoffactsthatmightseriouslyimpairthebusinessactivitiesoftheREIT
p.AnydevelopmentactivityundertakenbytheREIT,includingtheessentialdetailsthereof
q.DirectandindirectownershipofdirectorsandPrincipalOfficersinthesecuritiesoftheREIT
r.AnyamendmenttotheConstitutiveDocumentsoftheREIT
s.AnymajorchangeinaccountingpolicyoftheREITand
t.AnyplannedacquisitionofoutstandingsharesordispositionoftreasurysharesoftheREIT
u.Summaryofrealestatetransactionsenteredintoduringtheperiod,includingtheidentityoftheparties,thecontractprice
andtheirvaluations,includingthemethodsofvaluation
v. Summary of the REIT's real estate assets, including the location of such assets, their purchase prices and the latest
valuations,rentalsreceivedandoccupancyratesand/ortheremainingtermsoftheREIT'sleaseholdpropertiesand
w.ComparativesummarytothefinancialperformanceoftheREITforthesameperiods.
12.2FailureofCompliance.FailuretocomplywithreportorialanddisclosurerequirementsshallsubjecttheREITtotheapplicable
penalties under the Securities Regulation Code and the rules of the relevant Exchange, without prejudice to the filling of the
appropriateadministrative,civiland/orcriminalactionundertheREITActof2009orexistinglaws.
Rule6FundManager
Section1.FundManager.AREITshallappointaFundManagerwhoshallbeindependentoftheREIT,itspromoter/sorsponsor/s.
Section2.OrganizationandRequirements.AREITFundManagershallsubjecttothefollowingminimumrequirements:
21.1 It shall be registered corporation: (I) duly licensed by the appropriate Philippine regulatory agency engage in the business of
fund management. If the Fund Manager is a trust entity, it shall be covered by existing BSP rules and regulations governing trust
entitiesandregulationswhichtheBSPmayfromtimetotimeissue.(ii)withatleastathree(3)yeartrackrecordintheareaoffund
management,corporatefinance,orotherrelevantfinancerelatedfunctionsand(iii)aminimumpaiduporassignedcapitalinthe
case of foreign corporation, of One Hundred Million Pesos (Php 100,000,000.00) or its equivalent in foreign currency which shall
remainunimpairedatanygiventime,otherwise,anadditionalcapitalinfusionshallbemadewithinthree(3)workingdaysfromsuch
impairment(iv)withsufficienthuman,organizationalandtechnicalresourcesfortheproperperformanceofitsduties,includingtwo
(2)responsibleofficersoratrustofficer,incaseofatrustentity,shallbeavailableatalltimestosupervisethebusinessoftheFund
Manager
21.2ItsofficeinthePhilippinesshallhaveameaningfulroleinitsbusinessactivitiesandmustperformaccounting,complianceand
investorrelationsservicesinthePhilippines
21.3ItschiefexecutiveofficerortrustofficershallberesidentofthePhilippines,anditstwo(2)fulltimeandqualifiedprofessional
employeesshallhaveatrackrecordandexperienceinfinancialmanagementaswellasexperienceintherealestateindustryforat
leastfive(5)years
Section3.FunctionsoftheFundManager.TheFundManagershallperformthefollowingfunctions.
3.1 Implement the investment strategies of the REIT by: (I) determining the allocation of the Deposited Property to the allowable
investmentoutletsinaccordancewiththeREITPlanandtheinvestmentstrategyoftheREITand(ii)selectingincomegenerating
realestateinaccordancewiththeinvestmentstrategyoftheREIT.
NotwithstandingthewritteninstructionsoftheREIT,itshallbethefiduciaryresponsibilityoftheFundManagertoobjectivelyevaluate
thedesiredinvestments,andformallyadvisetheREITofitsrecommendations,evenifcontrarytotheinstructions
3.2 Oversee and coordinate the following activities: property acquisition leasing operational and financial reporting (including
operatingbudgets)appraisalauditsmarketreviewaccountingandreportingprocedures,aswellasfinancingandassetdisposition
plans

3.3CauseavaluationofanyoftherealestateandotherpropertiesoftheREITtobecarriedoutbythePropertyValueronceayear
whenevertheFundManagerbelievesthatsuchvaluationisappropriate
3.4Takeallnecessarymeasurestoensure:(i)thattheNetAssetperunitofaREITscalculatedasandwhenanannualvaluation
reportisissuedbythePropertyValuerfortherelevantperiod,andthatsuchNetAssetValueperunitshallbedisclosedintheannual
reports (ii) that the investment and borrowing limitations set out in the REIT Plan and the conditions under which REIT was
authorizedarecompliedwith(iii)thatalltransactionscarriedoutbyoronbehalfoftheREITareconductedatarmslength(iv)that
all times a REIT has proper legal title to the real estate it owns, as well as to the contracts. (such as property contracts, rental
agreements, joint venture or joint arrangement agreements, and any other agreements) entered into on behalf of the scheme with
respecttoitsassetsandthat(v)thatthepropertyManagerobtainsadequatepropertyinsurancefortherealpropertiesoftheREIT
frominsurancecompaniesapprovedbytheFundManager.Itshalltakecustodyofallrelevantdocumentssupportingtheinsurance
takenonrealpropertiesoftheREIT.
3.5Performallsuchfunctionsnecessarytoassetmanagement.
Section4.MinimumDocumentaryRequirements.
4.1ThearrangementbetweentheREITandtheFundManagershallbecoveredbythewrittendocumententeredintobytheparties,
accompaniedbyaSecretary'sCertificateattestingtotheapprovalbytheboardofdirectorsoftheREIToftheappropriateresolutions
forthe:(i)appointmentoftheFundManager,(ii)theestablishmentoftheaccount,and(iii)designatedofsignatoriestotheaccount.
4.2ThecontractbetweentheREITandtheFundManagershallcomplywiththedisclosureandotherrequirementsprescribedfor
Related Party Transactions. The arrangement between the REIT and the Fund Manager shall be covered by a written document
statingthefollowing:
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, including period of engagement, termination of contractual arrangement and, in appropriate cases, provision for
successorFundManager
k.theexactamountorrateofthecompensationoftheFundManager,providedthattheamountoffeesthatshallbecharged
to the REIT shall cover the fair and equitable share of the REIT in the total routine administrative expenses of the Fund
Managersuchassalariesandwages,supplies,creditinvestigation,collateralappraisal,security,messengerialandjanitorial
services,supervisionfeesimposedbytherelevantregulatoryagencyandinternalauditfees.However,theFundManagermay
chargetheREITforspecialexpensesincasesuchexpensesare:(1)necessarytopreserveorenhancethevalueofthefund
(2)payabletoanonrelatedthirdpartycoveredbyaseparatecontract,and(3)disclosedtotheREITshareholders.Provided,
however,thatinnocaseshallthefeescollectedbytheFundManagerexceed1%ofthenetassetvalueoftheassetsunder
management
l.iftheFundManagerisatrustentity,astatementinnoticeableprinttotheeffectthatthefundsandpropertiesarenotcovered
bythePhilippineDepositInsuranceCorporationandthatlosses,ifany,shallbefortheaccountoftheREITand
m.disclosurerequirementsfortransactionsrequiringpriorauthorityand/orspecificwritteninvestmentdirectivefromtheREIT,
courtofcompetentjurisdictionorothercompetentauthority.
4.3AcopyofthewrittenagreementshallbesubmittedtotheCommissiontogetherwiththeREITPlanandtheregistrationstatement,
and shall be available at the principal office of the REIT and the Fund Manager during regular office hours, for inspection by any
shareholderofrecordoftheREIT.Uponrequest,acopyofthewrittenagreementshallbefurnishedsuchshareholderofrecord,and
thecostofreproductionshallbeathisownexpense.
Section5.DegreeofCareandDiligence.TheFundManagershallobservethecareanddiligencerequiredundertheseRules,as
follows:
5.1TheFundManagershalladministerandmanagetheassetsoftheREITwiththeskill,care,prudenceanddiligencenecessary
under the circumstances then prevailing that a prudent man, acting in the same capacity and familiar with such matters, would
exerciseintheconductofanenterpriseofalikecharacterandsimilaraims.
5.2TheFundManagershallhavereasonableandadequatebasisforpreparingtheinvestmentrecommendation.
5.3 The Fund Manager shall establish, maintain and implement written policies and procedures that ensure "best execution" of
trades. To show proof of best execution, the Fund Manager shall maintain records or quotes from two (2) alternate providers,
wheneverapplicable,ordatafromanyreputablesourcethatcanbestprovideabasisfortheasset'sfairvalue.Suchrecordsshallbe
madeavailabletotheCommissionuponrequest.
5.4FundsorpropertiesofaREITmanagedbyaFundManagershallnotbecommingledwiththefundsofotherclients.
5.5TheFundManagermayonlyoutsourceactivitiesconfinedtobackroom/accountingandsecuritiescustodianshiparrangements.
5.6 When required under the Rules, the Fund Manager shall obtain the required approval for specific transactions prior to its
implementation.
5.7TheFundManagershallprovidetheREITwithfullandaccurateinformationinordertomakeaninformedinvestmentdecision
when approving a transaction or investment recommendation. The Fund Manager shall promptly transmit/relay to investors all
materialfactsnecessaryforthemtoprotecttheirinterestwiththeknowledgeoforreasonablydiscoverablebytheFundManager,
particularly,informationthatcouldenableclientstomakewellinformeddecisions.
Section6.ConflictofInterest.
6.1WhereaFundManagerhasamaterialinterestinatransactionwithorfortheREIT,orarelationshipwhichgivesrisetoanactual
orpotentialconflictofinterestinrelationtosuchtransaction,itshallneitheradvise,nordealinrelationtothetransactionunlessithas
disclosed in writing that material interest or conflict to the REIT and has taken all reasonable steps to ensure fair treatment of the
REIT.
Itshallestablish,maintainandimplementwrittenpoliciesandproceduresonconflictofinterest,particularlytoidentifyanddealwith
conflictsofinterestsituations.

6.2 The Fund Manager shall establish, maintain and implement written policies and procedures to ensure that its research is
independent and impartial in order to provide a reasonable and adequate basis for making investment decisions and taking
investmentaction.
Section7.LendingandInvestmentDisposition.
7.1 Management of the Funds. Assets received by the Fund Manager shall be administered in accordance with the terms of the
writteninstrumentsignedbytheparties.
7.2 Investment Strategy. Prior to making any investment recommendations or carrying out any transactions for or on behalf of the
REIT, the Fund Manager shall establish and understand the investment objectives, instructions, risk profile and investment
restrictionsoftheREIT.Forthispurpose,theREITshall,onanannualbasis,prepareathree(3)yearinvestmentstrategyconsistent
withtheREITPlancovering,amongothers,intendedpurchasesanddivestmentsofrealandotherproperties.TheREITshallsubmit
theinvestmentstrategyforthesucceedingyearstotheFundManagerinOctoberofeachyear.
7.3DiscretionaryPowers.WhentheFundManagerisgranteddiscretionarypowersintheinvestmentdispositionofREITfunds,and
unless otherwise specifically enumerated in the agreement or indenture and directed in writing by the REIT, court of competent
jurisdictionorothercompetentauthority,loansandinvestmentsofthefundshallbelimitedto:
a.EvidenceofindebtednessoftheRepublicofthePhilippinesandanyotherevidenceofindebtednessorobligationsthe
servicingandrepaymentofwhicharefullyguaranteedbytheRepublicofthePhilippinesand
b.LoansfullyguaranteedbytheRepublicofthePhilippinesastothepaymentofprincipalandinterest.
Thespecificdirectivesrequiredunderthissubsectionshallconsistofthefollowing(i)thetransactiontobeenteredinto(ii)theparty's
name(iii)amountinvolvedand(iv)collateral,ifany.
7.4TransactionsRequiringPriorAuthority.InadditiontorequirementsofRelatedPartyTransactionsasprovidedintheseRules,a
FundManagershallnotundertakeanyofthefollowingtransactionsfortheaccountoftheREIT,unlesspriortoitsexecution,such
transactionhasbeenfullydisclosedandspecificallyauthorizedinwritingorbyofficialelectroniccorrespondencebytheREIT,court
ofcompetentjurisdictionorothercompetentauthority:
a. Lend, sell, transfer or assign money or property to any of the departments, directors, officers, stockholders or
employees of the Fund Manager or their relatives within the first degree of consanguinity or affinity, or to the related
interest of such directors, officers and stockholders, or to any corporation where the Fund Manager owns at least fifty
percent(50%)ofthesubscribedcapitalorvotingstockinitsownsatleastfiftypercent(50%)ofthesubscribedcapitalor
votingstockoftheFundManager
b. Purchase or acquire property or debt instruments from any of the departments, directors, officers, stockholders, or
employeesoftheFundManager,ortheirrelativeswithinthefirstdegreeofconsanguinityoraffinity,ortotherelatedinterestof
suchdirectors,officersandstockholders,orfromanycorporationwheretheFundManagerownsatleastfiftypercent(50%)of
thesubscribedcapitalorvotingstockinitsownrightandnotastrusteenorinarepresentativecapacityortoanycorporation
whichownsatleastfiftypercent(50%)ofthesubscribedcapitalorvotingstockoftheFundManager
c.Investinequitiesof,orinsecuritiesunderwrittenby,theFundManageroracorporationinwhichtheFundManagerownsat
leastfiftypercent(50%)ofthesubscribedcapitalorvotingstockinitsownrightortoanycorporationwhichownsatleastfifty
percent(50%)ofthesubscribedcapitalorvotingstockoftheFundManager
d. Sell, transfer, assign, or lend money or property from one managed fund to another, except when the investment is in
evidenceofindebtednessoftheRepublicofthePhilippinesorloansfullyguaranteedbytheRepublicofthePhilippinesasto
thepaymentofprincipalandinterest.
Thedisclosurerequiredbythissubsectionshallconsistofthefollowingminimuminformation:(i)thetransactionstobeenteredinto
(ii) identities of the parties involved in the transactions and their relationships (iii) amount involved and (iv) collateral securities, if
any.
7.5FundsAwaitingInvestmentsorDistribution.FundsheldbytheFundManagerawaitinginvestmentordistributionshallnotbeheld
uninvestedorundistributedanylongerthanisreasonableforthepropermanagementoftheaccount.
7.6OrderAllocation.
a. The Fund Manager shall establish, maintain and implement policies and procedures to ensure fair and equitable
allocationofordersamongitsclients,includingtheREIT.
b. The Fund Manager shall ensure that the amount of commission or management fee earned from any particular client or
transactionshallnotbethedeterminingfactorintheallocationoforders.
c.WheretheFundManagerundertakesproprietarytrading,theFundManagershall,initsagreementwiththeREIT,disclose
to the REIT the method of selection and determination of securities transacted for the proprietary accounts and client's
accounts.TheFundManagershallensurethattradesarenotdirectedtobenefititsproprietaryaccountsoranypreferential
clients and, for this purpose, shall establish information barriers or firewalls, closely supervise internal communication to
preventflowofinformationandmaintaintheconfidentialityofpendingtransactionsandtheholdingsoftheREIT.Proprietary
orders shall be conducted through a separate licensed representative of the Fund Manager who shall not be managing the
REIT'sfunds.
d.WheretheFundManagerispartofagroupofcompanies,whichundertakeotherfinancialorrealestate/propertyactivities,
theFundManagershallensurethatthereisaneffectivesystemoffunctionalbarriers(firewalls)inplacetopreventtheflowof
informationthatmaybepricesensitiveormaterialandnonpublic,betweenthedifferentareasofoperations.
e. The Fund Manager shall establish, maintain and implement written policies and procedures to ensure that the interest of
RelatedPartiesshallnotsupersedetheinterestsoftheREIT.TheFundManagershalldisclosesuchpoliciestotheREIT.
Section8.ProhibitiononInsiderTrading/MisuseofInformation
8.1 The Fund Manager shall not effect or cause to be effected any transaction based on material nonpublic or price sensitive
information,orwhereprohibitedfromdealingbystatutoryrestrictionsoninsidertrading.
8.2TheFundManagershallestablish,maintainandimplementwrittenpoliciesandprocedurestopreventthemisuseofmaterialnon
public or price sensitive information relating to the REIT by persons having access to such information. The Fund Manager shall
ensurethatpersonshavingaccesstosuchinformationareawareofsuchrestrictions.
8.3TheFundManagershalldiscloseallinterestinsecuritiesasrequiredbyallapplicablestatutoryrequirementsandshallensure
thatitsstaffisawareofsuchrequirements.
Section9.ConfidentialityofInformation.
9.1 The Fund Manager shall establish, maintain and implement written policies and procedures to ensure confidentiality of
informationrelatingtothefundsandpropertiesoftheREIT.
9.2AnyinformationrelatingtothefundsorpropertiesoftheREITshallnotbedisclosedtoathirdpartyoranunauthorizedperson,

unlessthereisalegalorregulatoryrequirementtodisclosesuchinformation.
Section10.Reports.TheFundManagershallsubmitthefollowingreports:
10.1 The three (3)year investment strategy prepared by the REIT, which shall be due for submission to the Commission and the
relevantExchangeonorbeforeDecemberofeveryyear.
10.2 Quarterly written report on the performance of the REIT's funds and properties, and of the appropriate benchmarks shall be
submittedtotheREIT,theCommission,theBIRandtherelevantExchangewithinfortyfive(45)daysaftertheendofeachquarter.
Rule7PropertyManager
Section1.PropertyManager.TheREITshallappointaPropertyManagerwhoshallbeindependentfromtheREIT,itspromoter/sor
sponsor/s.APropertyManagershallbeconsideredindependentifitshallcomplywiththeFitandProperRuleashereindefined.
Section2.MinimumQualifications.ThePropertyManagershallcomplywiththefollowingminimumqualifications:
2.1Itshallpossesssufficienthuman,organizationalandtechnicalresourcesfortheproperperformanceofitsduties,includingtwo(2)
responsibleofficerseachofwhomshallhaveatleastfive(5)yearstrackrecordinpropertyportfoliomanagement,andatleastone
(1)oftheresponsibleofficersshallbeavailableatalltimestosupervisethebusinessofthePropertyManager,includingassetand
propertymanagement.
2.2Itshallmaintainsatisfactoryinternalcontrolsandwrittencomplianceprocedures.
2.3Itshallhavesufficientfinancialresourcesatitsdisposaltoenableittoconductitsbusinesseffectivelyandmeetitsliabilities.
Section3.FunctionsofthePropertyManager.ThePropertyManagershallberesponsibleformanagingallaspectsoftherealestate
ownedbytheREIT.ThePropertyManagershallperformthefollowingfunctionsinaccordancewiththeREITPlanandtheinvestment
strategyoftheREITincludingthefollowing:
a.planthetenantmixandidentifypotential
b.formulateandimplementleasingstrategies
c.enforcetenancyconditions
d.ensurecompliancewithgovernmentregulationsinrespectoftherealestateundermanagement
e. perform tenancy administration work, such as managing tenant occupancy and ancillary amenities, and negotiating with
tenantsongrant,surrenderandrenewaloflease,rentreview,terminationandrelettingofpremises
f. conduct rental assessment, formulating tenancy terms, preparing tenancy agreements, rent collection and accounting,
recoveryofarrearsandpossession
g. secure and administer routine management services, including security control, fire precautions, communication systems
andemergencymanagement
h.maintainandmanagethephysicalstructures/realproperties
i.formulateandimplementpoliciesandprogramsinrespectofbuildingmanagement,maintenanceandimprovementand
j.initiatingrefurbishmentandmonitoringsuchactivity.
Section4.WrittenAgreement.
4.1ThecontractbetweentheREITandthePropertyManagershallbecoveredbyawrittendocumententeredintobytheparties,
accompaniedbyaSecretary'sCertificateattestingtotheapprovalbytheboardofdirectorsoftheREIToftheappropriateresolutions
fortheappointmentofthePropertyManager.
4.2ThecontractbetweentheREITandthePropertyManagermustcomplywiththedisclosureandotherrequirementsprescribedfor
Related Party Transactions and must be submitted to the Commission together with the REIT Plan registration statement. The
arrangementbetweentheREITandthePropertyManagershallbecoveredbyawrittendocumentstatingthefollowing:
a.titleornatureofcontractualagreementinnoticeableprint
b.legalcapacities,innoticeableprint,ofpartiessoughttobecovered
c.purposesandobjectives
d.realpropertiessubjectofthearrangement
e.dutiesandpowersofthePropertyManager
f.liabilitiesofthePropertyManager
g.reportstotheREIT
h.termsincludingtheperiodofengagement,terminationofcontractualarrangementand,inappropriatecases,provisionfor
successorPropertyManager
i.theexactamountorratecompensationofthePropertyManager,providedthattheamountoffeesthatshallbechargedto
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, messengerial and janitorial services, supervision fees
imposedbytherelevantregulatoryagencyandinternalauditfees.However,thePropertyManagermaychargetheREITfor
special expenses in case such expenses are: (1) necessary to preserve or enhance the value of the REIT's Deposited
Properties (2) payable to a third party covered by a separate contract, and (3) disclosed to REIT's stockholders. Provided,
however, that in no case shall the fees collected by the Property Manager exceed 1% of the net asset value of the assets
undermanagement
j.disclosurerequirementsfortransactionsrequiringpriorauthorityand/orspecificwritteninvestmentdirectivefromtheREIT,a
courtofcompetentjurisdictionorothercompetentauthority.
4.3AcopyofthecontractshallbesubmittedtotheCommissiontogetherwiththeREITPlanandtheregistrationstatement,andshall
beavailableattheprincipalofficeoftheREITandthePropertyManagerduringregularofficehoursforinspectionbyanyshareholder
of record of the REIT. Upon request, a copy of the written agreement shall be furnished such shareholder of record, at his own
expense.
Section5.DegreeofCareandDiligence.ThePropertyManagershallobservethedegreeofcareanddiligenceprovidedinthese
rules,asfollows:
5.1ThePropertyManagershallexercisediligenceandthoroughnessintheexerciseofitsfunctions.
5.2ThePropertyManagershallbeliablefortheactsandomissionsofitsnomineesandagents.
5.3ThePropertyManagershallobtainapprovalforspecifictransactionspriortoitsimplementation.

5.4ThePropertyManagershallprovidetheREITwithfullandaccurateinformationinordertomakeaninformeddecisionregarding
propertymanagementmatters.
5.5ThePropertyManagershallnotmakeanymisrepresentationinanypropertymanagementrecommendation.
5.6PropertiesofaREITmanagedbyaPropertyManagershallnotbecommingledwiththepropertiesofotherclients.
Section6.ConflictofInterest.
6.1WhereaPropertyManagerhasamaterialinterestinatransactionwithorfortheREIT,orarelationshipwhichgivesrisetoan
actualorpotentialconflictofinterestinrelationtosuchtransaction,itshallneitheradvise,nordealinrelationtothetransactionunless
hehasfullydisclosedthatmaterialinterestorconflicttotheREITandhastakenallreasonablestepstoensurefairtreatmentofthe
REIT.
6.2ThePropertyManagershallestablish,maintainandimplementpoliciesandprocedurestoensurefairandequitableallocationof
resourcesamongitsclients,includingtheREIT.
6.3 The Property Manager shall ensure that the amount of commission or management fee earned from any particular client or
transactionshallnotbethedeterminingfactorintheallocationofresources.
6.4WherethePropertyManagerispartofagroupofcompanieswhichundertakerealestateactivities,thePropertyManagershall
ensurethatthereisaneffectivesystemoffunctionalbarriers(firewalls)inplacetopreventtheflowofinformationthatmaybeprice
sensitiveormaterialandnonpublicbetweenthedifferentareasofoperations.
6.5 The Property Manager shall establish, maintain and implement written policies and procedures to ensure that the interest of
RelatedPartiesshallnotsupersedetheinterestsoftheREIT.ThePropertyManagershallfullydisclosesuchpoliciestotheREIT.
Section7.ProhibitiononMisuseofInformation.ThePropertyManagershallestablish,maintainandimplementwrittenpoliciesand
procedurestopreventthemisuseofmaterialnonpublicorpricesensitiveinformationrelatingtotheREITbypersonshavingaccess
to such information. The Property Manager shall ensure that persons having access to such information are aware of such
restrictions.
Section8.ConfidentialityofInformation.
8.1 The Property Manager shall establish, maintain and implement written policies and procedures to ensure confidentiality of
informationrelatingtothefundsandpropertiesoftheREIT.
8.2 Any information relating to the properties or funds of the REIT shall not be disclosed to any third party unauthorized person,
unlessthereisalegalorregulatoryrequirementtodisclosesuchinformation.
Rule8FitandProperRule
Section1.FitandProperRule.TomaintainthequalityofmanagementoftheREITandaffordbetterprotectiontoREITinvestors,the
Commission,ortheconcernedregulatoryagency,shallprescribeorpassuponandreviewthequalificationsofindividualselectedor
appointedasdirectorsofofficersoftheREIT,REITfundmanagers,REITpropertymanagers,distributorsandotherREITparticipants
and disqualify those found unfit. The appropriate regulatory agency may disqualify, suspend or remove any director or officer who
commitsoromitsanactwhichrendershimunfitfortheposition.
Indeterminingwhetheranindividualisfitandpropertoholdtheposition,regardshallbegiventohisintegrity,experience,education,
trainingandcompetence.
Section2.Disqualifications.Thefollowingpersonsshallinnocasebeallowedtoserveoractasdirectorofofficerorconsultantof
anyREIT,REITfundmanager,orREITpropertymanager:
2.1Anypersonconvictedofanycrimeinvolvinganysecurityorfinancialproduct
2.2Anypersonconvictedofanoffenseinvolvingfraudorembezzlement,theft,estafaorotherfraudulentactsortransactions
2.3 Any person who, by reason of any misconduct, is enjoined by order, judgment, or decree by any court, quasijudicial body or
administrative agency of competent jurisdiction from acting as a director, officer, employee, consultant, or agent occupying any
fiduciaryposition
2.4Anypersonfoundbytheappropriateregulatoryagencytohaveviolated,oraided,abetted,counseled,commanded,induced,or
procured the violation of this Act, the Corporation Code, the General Banking Law, the Insurance Code, the Securities Regulation
Code,oranyrelatedlawsandanyrules,regulationsorordersthereunder
2.5Anypersonjudiciallydeclaredtobeinsolvent,orincapacitatedtocontractand
2.6Anypersonfoundguiltybyaforeigncourt,regulatoryauthorityorgovernmentagencyoftheactsorviolationssimilartoanyofthe
actsormisconductenumeratedintheforegoingparagraphs.
A conviction in the first instance shall be considered sufficient ground for disqualification. Applicants shall submit the pertinent
clearancerelativethereto.
Rule9PropertyValuer
Section1.AppointmentofanIndependentPropertyValuer.AREITshallappointadulyaccreditedindependentPropertyValuerto
prepare a full valuation of a REIT's assets at least once a year in accordance with the applicable rules of asset valuation and
valuationmethodologyprescribedbytheCommission.
Apropertyvaluershallnotbeconsideredindependentif
a.itisthesubsidiaryorholdingcompanyof:
i.theREIT

ii.thePropertyManager
iii.theFundManager
iv.anyofthePrincipalStockholdersoftheREITor
v. the holding company, Subsidiary or Affiliate of the Property Manager, the Fund Manager, or any of the Principal
ShareholdersoftheREITor
b.anyofitspartners,directorsorPrincipalOfficersisanofficer,directororanassociateof:
i.theREIT
ii.thePropertyManager
iii.theFundManager
iv.anyofthePrincipalShareholdersoftheREITor
v.theholding,SubsidiaryorAffiliateofthePropertyManager,theFundManageroranyofitsPrincipalShareholdersor

c.anyofitsdirectorsorPrincipalOfficersholdsorcontrolstenpercent(10%)ormoreofthebeneficialinterestin,ortherightto
voteinthegoverningbodiesofanyoftheentitiesinb(i),b(ii),b(iii)orb(iv)or
d. in case where the REIT intends to acquire or dispose of a property (the "subject property "), the Property Valuer or its
associate:
i.isengaged,whetherasprincipaloragent,bytheREIT'scounterpartythatintendsorhasagreedtosellor
topurchasefromtheREITthesubjectproperty,inrelationtotheintroductionorreferraloftheREITtothe
subjectpropertyorviceversa
ii.isengagedwhetherasprincipaloragentbytheREITinrelationtotheacquisitionofthesubjectproperty
iii.actsasabrokerfoethepropertytransactionforafeeor
iv.had,atanytimeduringtheone(1)yearimmediatelybeforethedateoftheagreementforsuchintendedpurchaseor
disposal,beenengagedtoprovidevaluationofthesubjectpropertytotheREIT'scounterparty(oritsRelatedParties).
1.1 The Property Valuer shall ensure that its opinion and valuation is independent of and unaffected by its business or
commercialrelationshipwithotherpersons.
1.2ThedirectionsandPrincipalOfficersofthePropertyValuershallcomplywiththeFitandProperRuleasdescribedunder
theseRules.
Section2.QualificationsRequiredofaPropertyValuer.
a.TheappraisalcompanyshallberegisteredwiththeCommission
b.ThecertifyingofficeroftheappraisalcompanyshallbeaprofessionalappraiserdulylicensedbytheDTIortheProfessional
Regulatory Board of Real Estate Service pursuant to R.A. 9646 and an officer/member of good standing any registered
associationofappraisalcompanies
c.Atthetimeofapplicati0on,thecompanyshallhaveaminimumexperienceoffive(5)yearsintheappraisalbusiness
d.Itshallhaveprofessionalservicesforatleastone(1)commercialbankandtwo(2)publiccompanies
e. The appraisal company or any of its directors/officers shall have no adverse judgement on any administrative, civil or
criminalcaseinvolvingitsappraisalbusiness
f.Itshallbesolventandinsoundfinancialcondition.
Theforegoingqualificationsshallbesupportedbyappropriatedocuments.
Section3.GeneralObligationsofaPropertyValuer.
3.1ThePropertyValuershallvaluealltherealestateoftheREIT,onthebasisofafullvaluationwithphysicalinspectioninrespectof
the site of the real estate and an inspection of the building(s) and facilities erected thereon once a year, and in any event for the
purposes of issuance of new Investor Securities. The Property Valuer shall also produce a valuation report on real estate to be
acquired or sold by the REIT or where new shares are offered by the REIT or in any other circumstances required by the
Commission.ThecontentsofthevaluationreportshallcomplywiththeseRules.
Section4.CriteriaforAcceptabilityofthePropertyValuer.
4.1ThePropertyValuershallbeacompanythat:
a.providespropertyvaluationservicesonaregularbasis.
b.CarriesonthebusinessofvaluingrealestateinthePhilippines
c.PossessestherequisitelicensesrequiredunderrelevantPhilippinerulesandregulations
d.IsaccreditedbytheCommission
e.Haskeypersonnelwhopossesstherequisitelicensesandarequalifiedtoperformpropertyvaluations
f.Hassufficientfinancialresourcesatitsdisposaltoenableittoconductitsbusinesseffectivelyandmeetitsliabilities
g.Hasrobustinternalcontrolsandchecksandbalancestoensuretheintegrityofvaluationreportsandthatthesereportsare
properlyandprofessionallypreparedinaccordancewithinternationalbestpractices
h.Hasadequateprofessionalinsurancetocoveritsusualrisksand
i.ComplieswiththeFitandProperRuleundertheseRules.
Section5.ValuationReport.
5.1ThePropertyValuershallproduceavaluationreportwhichshallinclude,asaminimum:
a.allmaterialdetailsinrelationtothebasisofvaluationandtheassumptionsused
b.descriptionandexplanationofthevaluationmethodologiesadopted
c.overallstructureandconditionoftherelevantmarketincludingananalysisofthesupply/demandsituation,themarkettrend
andinvestmentactivities
d.theparticularsinrespectofeachproperty,suchas:
i.anaddresssufficienttoidentitytheproperty,whichshallgenerallyincludepostaladdress,lotnumberand
suchfurtherdesignationasisregisteredwiththeappropriategovernmentauthorities
ii.thenatureoftheinteresttheREITholdsintheproperty(e.g.ifitisafreeholdorleasehold,andtheremainderofthe
termifitisaleasehold)
iii.theexistinguse(e.g.shops,offices,factories,residential,etc.)
iv.abriefdescriptionoftheproperty,suchastheageofthebuildingthesitearea,grossfloorarea,netlettablefloor
area,andthecurrentzoninguse
v.theoptionsorrightsofpreemptionandotherencumbrancesconcerningoraffectingtheproperty
vi.theoccupancyrate
vii.leasecycleduration
viii.leaseexpiryprofile
ix.asummaryoftermsofanysubleaseortenancies,includingrepairobligation,grantedtothetenantsoftheproperty
x.thecapitalvalueinexistingstateatthedatethevaluationwasperformed

xi. the existing monthly rental before profile tax if the property is wholly or partly let together with the amount and a
description of any outgoings or disbursements from the rent, and, if materially different , the estimated different, the
estimatedcurrentmonthlymarketrentalobtainable,onthebasisthatthepropertywasavailabletoletontheeffective
dateasatwhichthepropertywasvalued
xii.theestimatedcurrentnetyield
xiii.asummaryofanyrentreviewprovisions,wherematerial
xiv.theamountofvacantspace,wherematerial
xv.materialinformationregardingthetitleofthesubjectpropertyascontainedintherelevantopinion,andadiscussion
as to whether any and how the legal opinions have been taken into consideration in the valuation of the relevant
propertyand
xvi.anyothermatterswhichmayaffectthepropertyoritsvalue.
e.particulars[assetoutin(c)]ofanyrealestateforwhichtheREIThasanoptiontopurchase.
f. A letter starting the independent status of the Property Valuer and that the valuation report is prepared on a fair and
unbiasedbasis
g.Anexplanationoftherationaleforchoosingtheparticularvaluationmethod,ifmorethanonemethodisadopted.
5.2WheneveravaluationreportispreparedfortheREIT,thedateofthevaluationreportshallbe:
a.thedatetheREITisvalued,ifsuchreportispreparedforthepurposeofcalculatingtheNetAssetValueoftheREIT
or
b.thedatewhichisnotmorethanthree(3)monthsbeforethedateonwhich(i)anofferingdocumentisissuedor(ii)asale
andpurchaseagreement(orotheragreementtotransferlegaltitle)issigned,ifthetransactiondoesnotrequireshareholders
approval.
Section6.TerminationoftheServicesofaPropertyValuer.
6.1TheservicesofthePropertyValuershallbeterminatedafterithasconductedvaluationsoftherealestateoftheREITforthree
(3)consecutiveyears.Subjecttoacuringperiodofthree(3)years,theREITmay,however,reengagetheservicesofsaidproperty
valuer.
6.2ThePropertyValuershallbesubjecttoremovalbynoticeinwritingfromtheREITinanyofthefollowingevents:
a.thePropertyValuergoesintoliquidation,becomesbankruptorhasareceiverappointedoveritsassists
b.forgoodandsufficientreasontheFundManagerstatesinwritingthatachangeinthePropertyValuerisdesirableinthe
interestoftheREITshareholdersor
c.thePropertyValuerviolatestheseRulesoranyotherrelevantlaw,ruleorregulation.
6.3Inaddition,theservicesofthePropertyvaluershallbeterminatedinallothercasesprovidedforintheConstitutiveDocuments.
6.4UpontheterminationordismissalofthePropertyValuer,theREITshallappointnewPropertyValuerthatmeetsthequalification
requirementsundertheseRules.
Rule10Taxes
Section1.IncomeTaxationofREIT's.AREITshallbesubjecttoincometaxunderChapterIV.TitleIIoftheNIRC,asamended,on
itsTaxableNetIncomeasdefinedintheAct:Provided,ThatinnocaseshallaREITbesubjecttoaminimumcorporateincometax,
asprovidedunderSection27(E)ofthesameCode
Provided, further, That for purpose of computing the taxable net income of a REIT, dividends distributed by a REIT from its
distributableincomeasoftheendofthetaxableyearandonorbeforethelastdayofthefifth(5th)monthfollowingthecloseofthe
taxableyearshallbeconsideredaspaidonthelastdayofsuchtaxableyear.
However,aREITshallbesubjecttoincometaxonitstaxablenetincomeasdefinedinChapterIV,TitleIIoftheNIRC,asamended,
insteadofitstaxablenetincomeasdefinedinthisact,upontheoccurrenceofanyofthefollowingevents:
a)Failuretomaintainitsstatusasapubliccompanyasdefinesherein
b)FailuretomaintainthelistedstatusoftheinvestorsecuritiesontheExchangeandtheregistrationoftheinvestorsecurities
bytheCommissionand/or
c)Failuretodistributeatleastninety(90%)percentofitsDistributableIncomeasrequiredherein.
The above events, however, shall be subject to a Thirty (30) day curing period from the time of the occurrence of the event.
Compliance by the REIT within the curing period shall be determined by the Commission and such determination shall be
immediatelycommunicatedtotheBIR.
Section 2. Creditable Withholding Tax. Income payments to a REIT shall be subject to a creditable withholding tax of one (1%)
percent.
Section3.TaxonTransferofPropertybyREIT.AnysaleortransferofrealpropertytoaREIT,includingthesaleortransferofany
andallsecurityinteresttheretoshallbesubjecttofifty(50%)percentoftheapplicableDSTimposedundertitleVIIoftheNIRC.
All applicable registration and annotation fees relative or incidental thereto shall be fifty (50%) of the applicable registration and
annotationfees.
TheincentivesprovidedhereincanavailedbyanunlistedREITprovideditislistedwithanExchangewithintwo(2)yearsfromthe
initialavailmentoftheincentives.
The fifty (50%) percent of the applicable DST shall be due and demandable together with the applicable surcharge penalties and
interestreckonedfromthedatesuchtaxshouldhavebeenpaidupontheoccurrenceofanyofthefollowingevents:
a.FailuretolistwithanExchangewithinaperiodtwo(2)yearsfromthedateofinitialavailment
b.FailuretomaintainitsstatusaspubliccompanyasdefinedintheAct
c.FailuretomaintainthelistedstatusoftheInvestorSecuritiesontheExchangeandtheregistrationoftheinvestorsecurities
withtheCommissionand/or
d.Failuretodistributeatleastninety(90%)ofitsDistributableIncomerequiredundertheAct.
The above events, however, shall be subject to a thirty (30) day curing period from the time of the occurrence of the event.
Compliance by the REIT within the curing period shall be determined by the Commission and such determination shall be
immediatelycommunicatedtotheBIR.
Section4.IssuanceandTransferofInvestorSecurities.

a.TheoriginalissuanceofInvestorsecuritiesshallbesubjecttoDSTundertheNIRC,asamended
b.Anysale,barter,exchangeorotherdispositionoflistedInvestorSecuritiesthroughtheExchange,includingblocksalesor
crosssaleswithpriorapprovalfromtheExchangeshallbesubjecttothestocktransactiontaximposedundertheNIRC
c.Anysale,barter,exchangeorotherdispositionoflistedInvestorSecuritiesthroughtheExchange,includingcrossorblock
saleswithpriorapprovalfromtheExchangeshallbeexemptfromtheDSTprescribedbytheNIRCand
d.AnyinitialpublicandsecondaryofferingofinvestorsecuritiesshallbeexemptfromtheIPOtaximposedundertheNIRC.
Section5.Dividends Paid by REITs. Cash or property dividends paid by a REIT shall be subject to a final tax ten percent (10%)
unless
a. the dividends are received by a nonresident individual or a nonresident foreign corporation entitled to claim a
preferentialwithholdingtaxrateoflessthantenpercent(10%)percentpursuanttoanapplicabletaxtreatyor
b.thedividendsarereceivedbyadomesticcorporationorresidentforeigncorporation
Overseas Filipino investors are exempt from the dividends tax for seven (7) years from the effectivity of the tax regulations
implementingtheAct.
Section6.VATonGrossSalesorGrossReceiptsofREITs.
a. The gross sales from any disposal of real property or gross receipts from the rental of such real property shall be
subjecttoVAT
b.AREITshallnotbeconsideredasadealerofsecuritiesandshallnotbesubjecttoVATonitssale,exchangeortransferof
securitiesformingpartofitsrealestaterelatedassets.
Section7.General Application of the NIRC. Unless otherwise provided under the Act, the internal revenue taxes under the NIRC
shallapply.
Section 8. Delisting of the REIT and Revocation of Tax Incentives. The tax incentives granted under the Act shall be ipso facto
revoked and withdrawn as of the date of the delisting becomes final and executory in the event the REIT is delisted from the
ExchangewhethervoluntaryorinvoluntaryforfailuretocomplywiththeprovisionsoftheActoranyoftheseRules.
AnytaxincentivethathasbeenavailedofbytheREITthereaftershallberefundedtotheGovernmentwithinninety(90)daysfrom
thedatewhenthedelistingbecomesfinalandexecutoryandthesurchargeandpenaltyshallapply.Thisshallbewithoutprejudiceto
thepenaltiestobeimposedbytheBIR.
Ifthedelistingisforcauseshighlyprejudicialtotheinterestoftheinvestingpublicsuchasviolationofthedisclosureandrelatedparty
transactionsoftheActorinsolvencyoftheREITduetomismanagementormisappropriation,conversion,wastageordissipationof
itscorporateassets,theresponsiblepersonsshallrefundtoitsinvestorsatthetimeoffinaldelistingthebookvalue/acquisitioncost
oftheirshares.
Rule12MiscellaneousProvisions
Section 1. Corporate Governance. The Property Manager and the Fund Manager shall be subject to the principles of corporate
governanceadoptedbytheCommission.
Section2.SupplementalRegulations.TheserulesmybesupplementedbyrelevantregulationswhichtheCommission,Exchange,
BIRandBSPmayfromtimetotimeissue.
Section3.Use of Registration Fees. To carry out the purposes of these Rules, the Commission shall retain and use fifty percent
(50%)ofallfeespaidtoitrelativetotheestablishmentofREITsandtheregistrationoftheirsecuritiesinadditiontoitsannualbudget.
Section4.SeparabilityClause.If,foranyreason,anyarticleorprovisionoftheseRulesoranyportionthereoforapplicationofsuch
article, provision or portion thereof to any person, group or circumstance is declared invalid or unconstitutional, the remainder of
theseRulesshallnotbeaffectedbysuchdecision.
Section5.RepealingClause.Allotherrulesandregulationsorpartsthereof,inconsistentwiththeforegoingrulesandregulationsare
repealed,amendedormodifiedaccordingly.
Section6.EffectivityClause.TheseRulesshalltakeeffectfifteen(15)daysafteritscompletepublicationintheOfficialGazetteorin
atleasttwo(2)newspapersofgeneralcirculationinthePhilippines.