PLDT Inc.TEL

Response to the letter of the PSE dated November 17, 2025 requesting PLDT Inc. to clarify and/or confirm information in relation to the news article entitled “PLDT eyes REIT for $1-billion data centers, calling AI asset 'painful' to sell” as posted in Manila Bulletin (Online Edition) on November 17, 2025.

We refer to the letter of the PSE dated November 17, 2025 requesting PLDT Inc. (“PLDT”) to clarify and/or confirm information in relation to the news article entitled “PLDT eyes REIT for $1-billion data centers, calling AI asset 'painful' to sell” as posted in Manila Bulletin (Online Edition) on November 17, 2025.

The news article states, in part, that:

“Telecommunications firm PLDT Inc. is considering listing a real estate investment trust (REIT) for its data center business, alongside the potential sale of a minority stake, as it seeks to raise fresh capital and reduce its substantial debt load.

PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan said these two options are the only ones the company is currently exploring for the data center unit, which he valued at over $1 billion.

‘Either look for a significant minority who could help the business bring in the hyperscaler locators into the Philippines,” Pangilinan told reporters last week. “And number two, is to REIT all of the data centers under one bundle.’

Pangilinan had floated these same two options last year, but later opted to offload a 49 percent stake. Negotiations with a foreign company for the minority share subsequently fell through. This followed a decision to shelve earlier plans to sell a stake—including a majority share sought by Japan's Nippon Telegraph and Telephone Corp. (NTT)—as the company shifted its focus to expanding the business.

Pangilinan admitted that a REIT listing or selling a portion of VITRO is “painful,” as the unit is “probably the most attractive piece of business now for PLDT.”

“Painful, because the future is AI (artificial intelligence). And the focal point of AI are your data centers, your ability to process data, curate data, on a bigger scale, a faster scale,” he added.

Nevertheless, generating fresh capital is key to managing the company’s finances. PLDT’s debt stood at P297.54 billion as of September.

“I think we're in for tougher times ahead and it's best that we create some liquidity for PLDT to reduce [debt]. What we don't want to see is a credit downgrade for PLDT,” Pangilinan said.

….

To further manage its debt, PLDT is also planning to sell more than 200 idle assets, including former offices. PLDT Chief Financial Officer Danny Yu declined to disclose the monetary value of these properties.”

We provide the following confirmation on the foregoing matters:

(a) Options to maximize value from its data center assets:

We confirm that PLDT is evaluating strategies to optimize the value of its data center assets. These strategies include the potential listing of a real estate investment trust or the sale of a minority interest in the data center business, as previously disclosed. As of this writing, no final decision has been made on the matter.

(b) Planned sale of idle assets:

We also confirm that PLDT is actively assessing opportunities to monetize idle assets as part of its strategy of managing its debt obligations.

Some statements referenced herein may constitute forward-looking statements that are subject to risks and uncertainties. Actual results may differ due to various factors, and there is no assurance that such statements will be realized in the manner described. Although PLDT believes that expectations reflected in any forward-looking statements are reasonable, it can give no guarantee of future performance, action, or events.

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