Investing in REITs Philippines: A Simple Guide for First-Time Investors
For many Filipinos, investing in real estate feels like a distant dream. Buying a condo, office building, or commercial property often requires millions of pesos. In fact, even in my hometown in Bukidnon, five hundred square meters of land can already cost half a million pesos. The good news is that investing in REITs in the Philippines has made it possible for ordinary investors to participate in the real estate market with much smaller capital.
That’s where Real Estate Investment Trusts (REITs) come in.
REITs allow ordinary investors to earn income from large real estate properties owned by companies like Robinsons, without needing to buy the properties themselves. As someone who regularly follows the Philippine stock market, I remember when REITs were only recently introduced to the Philippine Stock Exchange. The sector has grown rapidly since then, especially in the years following the pandemic.
In this guide, we’ll explore how REITs work and how beginners can start investing REITs in the Philippines step by step.
Note for Readers
This article is intended for educational purposes only and should not be considered financial advice. Investing in stocks and REITs involves risks, and prices may go up or down over time.
Before making any investment decision, it is important to do your own research and understand the risks involved. What works for one investor may not necessarily work for another.
Always invest according to your financial goals, risk tolerance, and personal situation.
What Is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate.
Instead of purchasing property directly, investors can buy shares of a REIT and receive a portion of the income generated from those properties.
A simple way to understand a REIT is to imagine a large shopping mall that earns money from tenants who pay rent. Normally, only very rich people or big companies can afford to own a mall. But with a REIT, thousands of investors can each own a small part of that property by buying shares on the stock market. When the mall collects rent from stores, a portion of that income is distributed to investors as dividends. In this way, you can earn from real estate like malls, offices, hotels, or warehouses without actually buying the property yourself.
These properties may include:
- Office buildings
- Shopping malls
- Hotels
- Warehouses
- Industrial facilities
- Power plants
One interesting feature of REITs is that they are required to distribute a large portion of their earnings—usually 90% of their income—to shareholders as dividends. Because of this structure, many investors, including myself, see REITs as a way to earn regular passive income. Most REITs distribute dividends either quarterly or semi-annually, meaning investors receive payouts based on the number of shares they own.
For beginners who are curious about investing in REITs in the Philippines, this dividend feature is often one of the most attractive aspects—especially for investors who are thinking long term.
Why REITs Are Beginner-Friendly Investments
REITs are often recommended for new investors because they combine the benefits of real estate with the simplicity of stock investing (plus less risk).
Here are a few reasons why many beginners start with REITs.
Lower capital requirement
Buying physical property requires a huge amount of money. With REITs, you can start investing with only a few thousand pesos, depending on the stock price. You can purchase 100 shares for as low as 750 pesos. This low barrier to entry makes a big difference. Remember, even if you start small, with consistency, it’s going to pay off in the future.
Passive income
As I have said, most Philippine REITs distribute dividends regularly, often every quarter.
Personally, I find this appealing because it allows investments to generate income while you focus on other things in life — work, studies, or building other sources of income. Your money literally works for you while you sleep.
Professional management
The properties are managed by established real estate companies, meaning investors don’t have to deal with tenants, repairs, or maintenance. The company uses our invested money to expand properties and earn more income. All we have to do is wait for the income to be distributed accordingly. Plus, unlike traditional properties, REIT shares can be bought or sold easily through the stock market.
REITs Currently Available in the Philippines
The Philippine Stock Exchange now has several listed REIT companies that investors can choose from.
Some of the more well-known and reliable REITs include:
AREIT Inc. is the first Real Estate Investment Trust listed in the Philippines, and it began trading on the Philippine Stock Exchange in August 2020. The company was originally incorporated in 2006 under a different name before transitioning into a REIT and adopting the name AREIT in 2019.
AREIT is sponsored by Ayala Land, one of the largest real estate developers in the Philippines. Because of this partnership, many of the properties in AREIT’s portfolio are located in prime business districts such as Makati, Bonifacio Global City, Cebu, and Laguna
Citicore Energy REIT Corp., commonly known as CREIT, is the first renewable energy-focused REIT in the Philippines. The company was listed on the Philippine Stock Exchange in 2022.
Unlike traditional REITs that mainly own office buildings or malls, CREIT focuses on land used for renewable energy projects, particularly solar power farms. The company is sponsored by Citicore Renewable Energy Corporation, a Philippine developer of solar energy projects
MREIT Inc. is a real estate investment trust sponsored by Megaworld Corporation, one of the largest property developers in the Philippines. The company was listed on the Philippine Stock Exchange in 2021, making it one of the early REIT listings after the country opened its REIT market.
MREIT primarily focuses on premium office properties located in major business districts. Many of its buildings are located in Eastwood City, McKinley Hill, and other Megaworld-developed townships, which are well-known business and commercial hubs.
Filinvest REIT Corp., commonly known as FILRT, is a real estate investment trust sponsored by Filinvest Land Inc., one of the major property developers in the Philippines. The company was listed on the Philippine Stock Exchange in 2021.
FILRT mainly focuses on office buildings designed for business process outsourcing (BPO) companies and multinational tenants. Many of its properties are located in Northgate Cyberzone in Alabang, a well-known business district developed by Filinvest.
RL Commercial REIT, Inc., commonly known as RCR, is a real estate investment trust sponsored by Robinsons Land Corporation, also one of the major property developers in the Philippines. The company was listed on the Philippine Stock Exchange in 2021.
RCR focuses mainly on office buildings located in key business districts across the Philippines. Many of its properties are located in business hubs developed by Robinsons Land, which host large corporate tenants and outsourcing companies.
Each REIT has a different portfolio of properties, tenant base, and dividend yield.
How REIT Investors Make Money
REIT investors usually earn money in two main ways.
Dividends
Most REITs distribute dividends regularly. These dividends come from the rental income generated by their properties. For example, companies and businesses renting office spaces should pay rent to the REIT just like when we pay rent for boarding houses. That rental income is then distributed to shareholders.
In the Philippines, REIT dividends are often paid quarterly, which makes them attractive for investors looking for steady income. Here’s a table summary to give you an overview of the dividends released by these companies in the last 5 quarters:
(Dividend per share in Philippine pesos. Meaning multiply these amounts by the number of shares you have in the specific REIT/s.)
| REIT | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
| AREIT | ₱0.62 | ₱0.59 | ₱0.58 | ₱0.58 | ₱0.58 |
| CREIT | ₱0.049 | ₱0.049 | ₱0.049 | ₱0.055 | ₱0.055 |
| MREIT | ₱0.251 | ₱0.251 | ₱0.248 | ₱0.247 | ₱0.246 |
| FILRT | ₱0.067 | ₱0.066 | ₱0.066 | ₱0.066 | ₱0.066 |
| RCR | ₱0.106 | ₱0.105 | ₱0.104 | ₱0.104 | ₱0.103 |
The amount may look really small, but if you have a larger number of shares, say a million shares, then the dividends become significant.
Capital appreciation
Over time, if the value of the properties grows and the company performs well, the REIT’s share price may also increase.
This allows investors to potentially earn profits if they decide to sell their shares later at a higher price. Just as traditional stock trading works. Here’s a table I put up for you to compare the prices of the shares in the last 5 years.
| Year | AREIT | CREIT | MREIT | FILRT | RCR |
| 2024 | ~₱36 | ~₱2.80 | ~₱13.50 | ~₱3.40 | ~₱6.10 |
| 2023 | ~₱34 | ~₱2.60 | ~₱12.60 | ~₱3.20 | ~₱5.40 |
| 2022 | ~₱37 | ~₱2.50 | ~₱14.00 | ~₱5.20 | ~₱6.80 |
| 2021 | ~₱46 | N/A | ~₱20.00 | ~₱7.20 | ~₱7.80 |
| 2020 | ~₱32 | N/A | N/A | N/A | N/A |
As you can see from the table, share prices fluctuate over time, just like any other stock in the market. Prices may rise or fall from year to year depending on market conditions, investor sentiment, and overall economic factors.
The good news is that some Philippine REITs can be purchased at relatively affordable prices. In fact, some shares have traded at around ₱2.50 per share, making it possible for beginners to start investing with only a small amount of capital.
In the world of REIT investing, however, dividends are often considered the most important factor. Many investors focus less on short-term price movements and more on the regular dividend income that REITs distribute. As long as you continue holding your shares—or gradually add more over time—you can potentially receive quarterly dividend payments.
Over the long term, there is also the possibility of capital appreciation. If the share price becomes higher than the price you originally paid and you decide to sell your shares in the future, you may earn from that price increase.
However, once you sell your shares, you will no longer receive the dividends from those REITs. For this reason, many long-term investors choose to hold their shares for extended periods while collecting dividend income along the way.
How to Start Investing in Philippine REITs
So, if you’re interested in investing in REITs, the process is actually quite simple.
1. Open a stock brokerage account
You can open an account with any online broker, such as:
Many of these platforms now allow online registration. Just click on the links to redirect you to the respective sites. Also, for some platforms like COL, make sure you agree to the Consent to Trade in REITS.
2. Fund your account
After opening an account, you can deposit funds through bank transfers or other payment options available in your brokerage platform. Most of them allow you to fund using e-wallets like Gcash and Maya. Give it a day or so, and you’ll get a notification that the deposit was successful.
3. Buy REIT shares
Search for the REIT ticker in the trading platform and place a buy order. Remember, do your own research before buying a share. At the end of the day, it’s your own decision, and financial advice like this blog is here only to guide you. Always invest at your own risk and capacity.
4. Hold and collect dividends
Once you own the shares, you simply hold them and receive dividends whenever the REIT distributes them. For many investors, this is where the long-term benefit comes in — allowing investments to slowly generate income over time. One good strategy I learned from Bo Sanchez’ book My Maid Invests in the Stock Market, it pays well if you are consistent. Say deposit and purchase shares every month or every quarter, regardless of the market fluctuation, over time, it will balance out and yield income.
Risks to Consider
Although REITs are often considered relatively stable investments, they are not completely risk-free. I will explain these risks in simple terms:
- Market fluctuations
Market fluctuations simply mean that share prices can go up or down over time. This happens because of many factors such as domestic and global economic news (just like the ongoing crisis in the Middle East), investor sentiment, or overall market conditions.
For example, if investors become worried about the economy, REIT prices might temporarily drop. On the other hand, if investors are confident about the market or the company performs well, the share price may increase. These price changes are normal in the stock market.
- Interest rate changes
Interest rates are set by central banks and influence how much it costs to borrow money.
When interest rates rise, some investors may move their money into safer investments like bank deposits or bonds. Because of this, demand for REITs may decrease, which can sometimes cause REIT share prices to fall.
However, REITs still continue to generate income from their properties, so many investors focus more on the dividends they receive rather than short-term price movements.
- Tenant vacancy risk
Tenant vacancy risk happens when buildings owned by the REIT lose tenants or when office spaces remain empty.
Since REITs earn income mainly from rent paid by tenants, fewer tenants can mean less rental income for the company. If this happens for a long time, it could affect the dividends distributed to investors.
This is why many investors also look at the quality of tenants and the location of properties when choosing a REIT to invest in.
A Simple Strategy for Beginners
For beginners, keeping things simple is often the best strategy.
You might start by:
- choosing one strong REIT
- investing gradually
- reinvesting your dividends
Over time, you can diversify by adding other REITs to your portfolio to also diversify your risk. Meaning if one REIT is down or gives less dividends, you can have another REIT that might be well-oiled and give you good returns. This balances everything.
Remember, REITS are a way to slowly build income-producing assets rather than trying to get rich quickly. If you are into fast trading and quick money, then REITs are definitely not for you. xx.
So good luck on your investing journey. Think long-term!
-Bryan
P.S. You can join this Facebook page to hear experiences and advice from like-minded REIT investors in the Philippines: https://www.facebook.com/groups/677557220328844
