CreditSights expects PLDT Inc.'s planned data center real estate investment trust (REIT) to improve the company's credit standing, primarily through debt reduction.
The rating agency views the structural separation of these high-growth assets as a net positive for the telecommunications group's balance sheet, despite potential offsets from mandatory dividend payouts to the parent company.
The REIT structure allows PLDT to monetize its data center portfolio while retaining operational control and a significant equity stake.
By transferring these assets to a separate listed entity, PLDT can raise capital directly from the market, reducing reliance on corporate debt.
CreditSights notes that while the REIT will be required to distribute a substantial portion of its taxable income as dividends, the upfront capital raise and improved asset visibility outweigh the ongoing cash outflow requirements.
PLDT previously filed an application to list its data center assets as a REIT, seeking to raise up to P24.2 billion in the offering.