How To Trade Or Invest In The Real Estate Investment Trust (REIT) In The Philippines

REITs or Real Estate Investment Trusts are an easy way to invest in real estate since they are bought and sold like stocks. ​You would own apartments, office buildings, and get a share of the rent.

What is Real Estate Investment Trust (REIT)?

A Real Estate Investment Trust (REIT) is a stock corporation. Principally organized for the purpose of owning income-generating real estate assets (Republic Act No. 9856 or REIT Act of 2009). A REIT makes money by collecting rentals, user’s fees, toll fees, parking fees, or storage fees from their tenants.

What are the benefits of REIT for the investors?

Here are some of the benefits of investing in REIT:

• Participation in a new asset class.
• At least 90% of distributable income to be distributed as dividends.​
• Provides investors with current cash flow returns/yield.
• Opportunity to own an equity interest in income-producing real estate.
• Diversification of investment portfolio.
• Liquidity - listed in the stock exchange.

How to Invest in REITs in the Philippines?

You need a Stockbroker to invest!

A stockbroker or trading participant is an individual or company accredited by the Philippine Stock Exchange and Securities and Exchange Commission to place buy and sell orders on behalf of investors.

There are two types of stockbrokers: traditional and online. Traditional stockbrokers provide a licensed salesperson who takes orders through phone calls or email. Online stockbrokers enable their clients to make buy or sell placements through their web-based trading platform.

Did you know that for only PHP 1,000 to PHP 5,000 you can now open a stock trading account? With the help of an accredited online trading broker, you can start to participate in the Philippine Stock Market. For the complete list of stockbrokers, visit https://www.pse.com.ph/

​Subscribe to an IPO via PSE EASy

Here’s a quick guide on how to create a PSE EASy account:

Step 1: Register, go to the PSE EASy website (https://easy.pse.com.ph). Click the register button, and fill up the required fields.

Step 2: Validate, and verify your PSE EASy account by clicking on the link emailed to you by the PSE. After 1-2 business days, your designated trading participant (your online stock broker) should email you your PSE EASy reference number, which you'll have to enter into your account.

For more information about REIT:

Read my separate blog post here: https://tinyurl.com/366j4zz9

How and Why to Invest in the Stock Market?

Read my blog post here: https://bit.ly/3Hy1E4I