On 24 January 2020, Thai SEC proposed changes to REIT, INViT disclosures.
- Thai SEC opened consultation on draft improvements to property funds disclosures.
- Including infrastructure funds and REITs or mutual funds/trusts that invest in leasehold or leasehold income so that investors have the information necessary for decisions.
- While also updating the disclosure form for fund and trust summaries to be short and concise for ease of understanding, and comparability between sectors.
- In October 2018, SEC consulted on proposed fund disclosure for leaseholds.
- During the consultation most responses agreed with the principles proposed.
- Thai SEC has improved criteria according to recommendations to be more appropriate.
- Asset management companies and trust managers must disclose the internal rate of return (IRR) so investors can be informed about both expected and long term returns.
- For property funds (division 1), asset management will disclose IRR estimates that unit holders will receive in the annual registration statement and annual fund report.
- In addition, the asset management company or the REIT manager shall disclose the asset valuation report and review report so investors and analysts have information.
- The latest appraisal of property values will be disclosed through appropriate channels, such as website announcements, 30 days from the completed date of assessment.
- Annual registration statement and annual fund report will be concise, easy to understand and in a form where investors can consider the risk, use for comparison.
- Comment period ends 22 February 2020.