Assets with Stable Cash Flow
Telecommunications towers are among the strongest candidates for infrastructure REITs in the Philippines. These assets offer highly stable cash flows through long-term lease agreements with mobile operators, typically with tenors of 10 to 15 years. With the expanded definition of assets explicitly covering telecom towers, tower operators such as EdgePoint and PhilTower have a clearer path to monetize through REITs.
Ocampo from ICCP mentioned that the rule changes could attract REIT offerings from cellular tower operators, along with toll road operators and fiber optic network providers. This shows that the pipeline for telecom-based REITs is already forming.
Data Centers: Critical Infrastructure for the AI Era
The data center sector is in the spotlight after PLDT filed a REIT for Vitro Inc. with a target fundraising of up to ₱24.2 billion. The initial portfolio consists of eight operational data centers with approximately 24 megawatts of ready IT capacity, serving enterprise, hyperscale, and cloud customers. Demand for secure, resilient, and scalable digital infrastructure continues to grow, driven by AI and cloud adoption in the region.
Data centers also offer long-term contracts and high barriers to entry, making them attractive to investors seeking stable and growing income. As the Philippines accelerates its digital transformation, data center REITs could become a core holding for infrastructure-focused portfolios.
Energy and Utilities: Inflation-Indexed Income
Energy infrastructure also falls under the eligible assets for REITs. Citicore Energy REIT Corp. (CREIT) is the first energy REIT in the Philippines, and this reform opens the door for more energy assets such as power generation facilities and distribution networks to enter REIT structures. Energy assets often offer inflation-indexed or long-term contracted income, making them attractive in a declining interest rate environment.
Logistics and Warehousing: Driven by E-commerce
Logistics and warehousing facilities are also strong candidates, especially with the rapid growth of e-commerce in the Philippines. Demand for modern warehouse space and distribution centers continues to rise, and REITs can be an effective vehicle to capitalize on this trend. Industrial REITs in other markets have shown resilient performance, and the Philippines is now positioned to follow.
