REPORTORIAL AND DISCLOSURE REQUIREMENT OF REAL ESTATE INVESTMENT TRUST (REIT)

Read also: ALLOWABLE INVESTMENTS OF REAL ESTATE INVESTMENT TRUST (REIT)

• The REIT shall comply with the reportorial and disclosure requirements prescribed by the Revised Corporation Code and the Securities Regulation Code (SRC).

• The Bureau of Internal Revenue (BIR) shall likewise be furnished copies of the reports.

• Failure to comply with reportorial and disclosure requirements shall subject the REIT to the applicable penalties under the Securities Regulation Code.

The REIT shall comply with the reportorial and disclosure requirements prescribed by the Revised Corporation Code, the Securities Regulation Code (SRC) and the relevant Exchange. The Bureau of Internal Revenue (BIR) shall likewise be furnished copies of the reports prescribed.

Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of 2009 (R.A. No. 9856) provides that:

The REIT shall disclose the following information in its Annual, Quarterly or Current Report:

1. Material Contracts;
2. Breach of the borrowing limit of the REIT and how and when to address said breach;
3. Investments of the REIT;
4. A proposed change in the Fund Manager, Property Manager, Property Valuer or auditor of the REIT, and the reasons therefore;
5. Valuation of the real estate properties of the REIT, including the valuation methodology used therefore;
6. Material changes in the income stream of the REIT;
7. Material changes in the REIT’s financial forecast;
8. Any fee received by any party relating to the acquisition or disposition of the real estate of the REIT;
9. Giving or receiving a notice of intention to undertake a merger, consolidation, joint venture, takeover or spin-off involving the REIT;
10. Any modification of the rights of the holders of any class of securities issued by the REIT and the corresponding effect of such modification upon the rights of the holders;
11. Any declaration of cash dividend, stock dividend, property dividend and preemptive rights by the REIT;
12. Appointment of a receiver or liquidator for the REIT;
13. Losses or potential losses which amount to at least five percent (5%} of the value of the Deposited Property of the REIT;
14. Occurrence of any event of dissolution with details in respect thereto;
15. Acts or facts that might seriously impair the business activities of the REIT;
16. Any development activity undertaken by the REIT, including the essential details thereof;
17. Direct and indirect ownership of directors and Principal Officers in the securities of the REIT;
18. Any amendment to the Constitutive Documents of the REIT;
19. Any major change in accounting policy of the REIT; and
20. Any planned acquisition of outstanding shares or disposition of treasury shares of the REIT.
21. Summary of all real estate transactions entered into during the period, including the identity of the parties, the contract price and their valuations, including the methods of valuation;
22. Summary of all the REIT’s real estate assets, including the location of such assets, their purchase prices and the latest valuations, rentals received and occupancy rates and/or the remaining terms of the REIT’s leasehold properties; and
23. Comparative summary of the financial performance of the REIT for the same periods.
24. Any other disclosures as may be required by the Commission or the relevant Exchange including where applicable, compliance by the Sponsor/Promoter with its Reinvestment Plan.

Failure of Compliance.

Failure to comply with reportorial and disclosure requirements shall subject the REIT to the applicable penalties under the Securities Regulation Code and the rules of the relevant Exchange, without prejudice to the filing of the appropriate administrative, civil and/or criminal action under the REIT Act of 2009 or existing laws.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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