Investing in real estate investment trusts (REITs) has made a big difference for me. When I was researching different investment options, REITs kept coming up, and I’m so glad I took the time to explore them.
In this post, I’ll keep it simple and straightforward. I won’t dive too deeply into how REITs work—you’ll find links to helpful resources below if you want to learn more. Instead, I’ll focus on answering common questions about REITs and sharing my personal approach to investing in them.
FAQs About REITs
What Are REITs?
REITs, or Real Estate Investment Trusts, are companies that manage income-generating real estate assets. Think of them as a way to invest in real estate without the hassle of buying, managing, or maintaining property. You essentially buy shares of the REIT, and in return, you earn dividends from the profits generated by the real estate they manage, and over time, there’s also the potential to earn from an increase in the value of its shares.
How Much Will I Earn With REITs?
Earnings from REITs depend on the dividends they distribute and the performance of their stock over time. REITs are known for providing higher dividends than many other stocks because they are required by law to distribute at least 90% of their taxable income to shareholders. This makes them an attractive option for those looking for consistent passive income.
With my investment in Ayala REIT, putting ₱50,000 gives me ₱750 every quarter (P3,000 annual return), which works out to a 6% ROI per year.
On the other hand, my ₱50,000 investment in Jollibee Foods Corporation (JFC) brings in ₱227 twice a year (P454 annual return), giving me an ROI of about 0.91% annually.
For me, REITs have been more consistent and reliable compared to JFC. That said, I still think it’s important to keep my investments diverse. REITs are great for steady income, but stocks like JFC can offer growth potential over the long term. Having a mix of both helps me balance the ups and downs of the market.
To give you an idea, please check the table below showing the dividends and historical values of some popular REITs in the Philippines.
What REITs Are Available in the Philippines?
You can find several REITs in the Philippine stock market, each catering to different investment preferences. These REITs manage properties like office spaces, retail centers, hotels, and logistics hubs.
Take a look at the data below to learn more about these companies, including their dividend yields, property portfolios, and historical performance. This information can help you decide which REIT best fits your financial goals.
REIT | Dividend Yield (2024) | Payout Frequency | Average Dividend Per Share (₱) | Share Price Range (5 Years) | Notes |
6-7% | Quarterly | 1.76 | P35 - 50 | Pioneer REIT; backed by Ayala Land; stable growth | |
7-8% | Quarterly | 1.0 | P12.5 - 20 | Aggressive expansion in premium office properties | |
9.87% | Quarterly | 0.92 | P1.00 - 1.20 | High yield; office and mixed-use properties near Metro Manila ports | |
~6% | Quarterly | 1.05 | P2.80 - 3.50 | Retail-focused with strong tenant retention | |
~5-6% | Quarterly | 0.89 | P 6.50 - 8.00 | Focused on eco-friendly office spaces in Alabang |
Which REIT Is Best?
I know a lot of investment gurus who are more knowledgeable than me might have different opinions about which REIT is the best. But personally, when I choose where to invest, I always make sure I:
Understand the company – I like being familiar with its operations and reputation.
Align with their values – Companies focused on sustainability and ethical practices appeal to me the most.
For example, I prefer Ayala REIT (AREIT). After working in Makati for nearly 10 years, I’ve seen firsthand the quality of Ayala’s developments. Their focus on sustainability, while not perfect, is commendable.
How to Invest in REITs From Home ?
The easiest way for me to invest in REITs from the comfort of my home is through First Metro Securities (First Metro Sec). Here’s how I do it:
Open a Metrobank account – This gives you access to Metrobank’s online banking platform.
Create a First Metro Sec account – Learn how to create an account here https://www.firstmetrosec.com.ph/fmsec/7-Account%20Opening%20FAQs and then fund it thru your Metrobank account for seamless fund transfers. Here's how: https://www.firstmetrosec.com.ph/fmsec/article/1346-metrobank-app
Once everything is set up, you can start investing in REITs with just a few clicks.
Final Thoughts
REITs are an excellent way to earn passive income while diversifying your investment portfolio. They’re relatively low-risk compared to other investment options, and the consistent dividends make them especially appealing.
If you’re considering investing in REITs, take time to research the companies you’re interested in, check if their values align with yours, and choose a platform like First Metro Sec to make investing easy.
Have you tried investing in REITs? What’s your experience been like? Let me know in the comments!
Other Helpful Resources:
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