SINGAPORE - The Monetary Authority of Singapore (MAS) will now require real-estate investment trusts (Reits) to hold annual general meetings (AGMs) once every calendar year, with effect from Jan 1 next year.

Mandatory AGMs will enhance corporate governance for Reits by providing an important channel for communication between Reit managers and unitholders, said MAS in a statement released yesterday.

This will allow Reit managers to be more accountable to unitholders.

In addition, AGMs will provide a regular opportunity for Reit managers to seek general mandates from unitholders for the issuance of new units. This will accord greater flexibility for equity raising, said the authority.

MAS made the revisions after taking into account feedback from its public consultation in May and its discussions with Reit players.

The first Singapore Reit was launched and listed on the Singapore Exchange in July 2002.

Singapore is now the largest Reit market in Asia, excluding Japan, with 19 listed Reits and a total market capitalisation of more than $23 billion as of September this year.

Singapore-listed Reits offer investors access to a diversity of real-estate assets, including retail malls, office buildings, industrial properties, hotels, serviced apartments and hospitals.

For more information on MAS' response to the comments received in the public consultation, visit its website at www.mas.gov.sg.

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