Investing in real estate is a great way to build wealth and generate passive income. However, buying physical properties can be expensive and time-consuming. This is where real estate investment trusts (REITs) come in.
REITs are companies that own and operate income-generating real estate assets. They are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes REITs a good option for investors who are looking for a steady stream of income.
Another advantage of REITs is that they are relatively easy to invest in. You can buy shares of REITs on the Philippine Stock Exchange (PSE) just like any other stock.
What are REITs?
REITs are a type of investment company that owns and operates income-generating real estate assets. REITs can invest in a variety of real estate assets, including office buildings, shopping malls, apartments, hotels, and industrial properties.
REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes REITs a good option for investors who are looking for a steady stream of income.
How to invest in REITs
To invest in REITs, you will need to open an account with an online stockbroker. Once you have opened an account, you can search for REITs on the PSE and purchase shares just like any other stock.
Here are the steps on how to invest in REITs in the Philippines:
- Open an account with an online stockbroker.
- Search for REITs on the PSE.
- Purchase shares of REITs.
Online stock exchange trading platforms
Here are some of the online stock exchange trading platforms in the Philippines:
Known for its user-friendly interface, Philstocks is an online brokerage firm that caters to both beginners and experienced investors. It offers a range of investment instruments, including REITs.
- COL Financial:
COL Financial is one of the largest and most popular online stockbrokers in the Philippines. It provides a comprehensive platform for trading various securities, including REITs.
- First Metro Sec:
Backed by First Metro Investment Corporation, First Metro Sec is a reputable online trading platform. It offers a range of investment products and services, making it suitable for REIT investments.
- BPI Trade:
BPI Trade, a subsidiary of the Bank of the Philippine Islands, is a trusted platform for online stock trading. It provides convenient access to a variety of investment options, including REITs.
Which REIT companies to invest in
Here are some of the REIT companies in the Philippines that you may want to consider investing in:
- Ayala Land REIT, Inc. (ALI REIT):
ALI REIT is backed by Ayala Land, a leading real estate developer in the Philippines. Investing in ALI REIT provides exposure to a diverse portfolio of properties, including residential, commercial, and mixed-use developments.
- Double Dragon Properties Corp. (DDMP REIT):
DDMP REIT is associated with Double Dragon Properties Corp., known for its innovative and sustainable real estate projects. DDMP REIT offers opportunities to invest in commercial properties with growth potential.
- Filinvest REIT Corp. (FILRT):
FILRT is a venture by Filinvest Land, Inc., a prominent real estate developer. Investing in FILRT allows you to participate in a portfolio of income-generating properties, ranging from office spaces to retail establishments.
- Robinsons Land REIT, Inc. (RLC REIT):
RLC REIT is linked to Robinsons Land Corporation, a well-established real estate player. RLC REIT offers exposure to a diverse range of properties, including malls, office buildings, and hotels.
- SM Keppel Land, Inc. (SMKLI):
SMKLI is a collaboration between SM Prime Holdings and Keppel Land, combining the strengths of two leading real estate companies. Investing in SMKLI provides an opportunity to participate in a mix of commercial and residential properties.
These companies are all well-established and have a good track record of profitability. They also own a diversified portfolio of real estate assets, which helps to reduce risk.
Investing in REITs is a great way to invest in Philippine real estate without having to buy physical properties. REITs are relatively easy to invest in and offer the potential for steady income and long-term capital appreciation.
If you are a beginner investor, REITs are a good option to consider.