Ayala Land and other Philippine property companies may be upgraded by analysts once the nation’s Congress enacts a law giving tax breaks for real estate investment trusts, the country’s biggest bank by assets said.

The developers have a pool of developments that can be immediately turned into REITs, said Jonathan Ravelas, a strategist at Banco de Oro Unibank Inc., also known as BDO Bank. REITs are trusts that hold properties and typically distribute rental income to investors in dividends.

'The big players have a good headstart,' Ravelas said. 'They have a portfolio of high-quality assets that can be used to raise more cash and create more assets that can be put into a trust.'