Quick answer
A REIT (real estate investment trust) is a company listed on the Philippine Stock Exchange that owns income-producing properties such as offices, malls, warehouses or power plants, and must distribute at least 90% of its distributable income as dividends each year. You buy REIT shares through an online stock broker like any stock. Dividends are taxed at 10%, and REIT prices still rise and fall with the market.
Key takeaways
- REITs let you earn rental-based income from big properties with a few thousand pesos.
- By law (RA 9856), Philippine REITs pay out at least 90% of distributable income as dividends, usually quarterly.
- Compare REITs on dividend yield, occupancy, tenant quality, lease length, debt and the sponsor's plans to add properties.
- Prices can fall when interest rates rise or when property demand weakens, such as office space after POGO exits.
- Cash dividends are taxed at 10% final tax; selling shares incurs the 0.1% stock transaction tax.
On this page
Most Filipinos dream of earning rental income, but buying a condo to rent out takes millions, a loan and a lot of work. REITs offer a different route: own a slice of large, professionally managed properties and receive a share of the rent as dividends.
How Philippine REITs work
A REIT is a corporation that owns income-generating real estate, is listed on the PSE, and follows the REIT Act of 2009 (RA 9856) and SEC rules. Key features:
- At least 90% of distributable income must be paid out as dividends every year. Most REITs pay quarterly.
- A sponsor, usually a large property developer or conglomerate, transfers properties into the REIT and often adds more over time.
- Properties include office buildings, malls, hotels, warehouses and logistics hubs, and in some cases renewable-energy assets such as land leased to solar plants.
Well-known Philippine REITs include those sponsored by Ayala (AREIT), Megaworld (MREIT), Robinsons Land (RCR), Filinvest (FILRT), DoubleDragon (DDMPR) and Citicore (CREC). These are examples, not recommendations.
How you make money
- Dividends: your share of rental income, paid regularly.
- Price changes: the share price can rise or fall.
Example: you buy 2,000 shares at ₱3.50 = ₱7,000. If the REIT pays ₱0.0625 per share each quarter:
- Gross dividends per year: 2,000 × ₱0.25 = ₱500
- Less 10% tax: ₱450 net
- Net yield on your cost: about 6.4%
If the price later falls to ₱3.00, your shares are worth ₱6,000 even though dividends kept coming. If it rises to ₱4.00, they're worth ₱8,000.
How to compare REITs
| What to check | Why it matters | Where to find it |
|---|---|---|
| Dividend yield | Income relative to price | Dividends declared ÷ current price |
| Occupancy rate | Empty space means less rent | Quarterly reports |
| Tenant mix | Diverse, strong tenants are safer | Annual report, investor presentations |
| Weighted average lease expiry | Longer leases mean steadier income | Investor presentations |
| Property type and location | Office, mall, logistics and energy face different risks | REIT plan, disclosures |
| Debt (gearing) | High borrowing adds risk | Financial statements |
| Asset infusion pipeline | New properties drive growth | Sponsor announcements |
Disclosures are posted on the PSE EDGE portal and the REIT's investor relations website.
Risks to understand
- Interest rates: when bond and deposit rates rise, investors demand higher REIT yields, which pushes prices down.
- Sector risk: office REITs were hit when outsourcing firms shifted to hybrid work and when offshore gaming (POGO) tenants left after their ban. Mall and hotel REITs depend on consumer spending.
- Sponsor concentration: a REIT's tenants and growth often depend heavily on its sponsor.
- Market risk: REITs trade like stocks, so prices can fall in a broad market sell-off.
Taxes and fees
- Cash dividends: 10% final tax for resident individuals, withheld automatically.
- Selling shares: 0.1% stock transaction tax (since July 2025), plus regular broker fees.
- Buying: broker commission (typically 0.25%), VAT on commission, and PSE and SCCP fees.
How to buy REIT shares
- Open an account with an online stock broker. See how to invest in stocks.
- Fund the account.
- Search for the REIT's ticker and check its board lot.
- Place a limit order at the price you're willing to pay.
- Hold and collect dividends, which are credited to your broker account.
Some investors also access REITs through REIT-focused funds or UITFs from banks and fund managers, which spread money across several REITs. See UITF vs mutual fund.
Where REITs fit in your plan
REITs work best as one part of a diversified long-term portfolio, for example alongside an index fund and bonds. They suit investors who want regular income and can hold through price swings. Avoid putting your emergency fund or short-term money in them.
Frequently asked questions
How much do REITs pay in the Philippines?
It varies by REIT and changes with share prices and earnings. Dividend yields of listed Philippine REITs have often been in the mid-single digits to high-single digits per year. Check each REIT's latest declared dividends and current price to compute the yield yourself.
How do I compute REIT dividend yield?
Add up the dividends per share declared over the past 12 months and divide by the current share price. If a REIT paid ₱0.25 per share in the last four quarters and trades at ₱3.50, the trailing yield is about 7.1% before the 10% tax.
Are REITs safe?
They're less volatile than many stocks because their income comes from leases, but they are not risk-free. Share prices can drop, distributions can be cut if occupancy or rents fall, and rising interest rates tend to pressure REIT prices.
What is the minimum investment for REITs?
It's the price of one board lot. A REIT priced between ₱0.50 and ₱4.99 trades in lots of 1,000 shares, so at ₱3.50 the minimum is ₱3,500 plus fees. A REIT priced from ₱5.00 to ₱49.95 trades in lots of 100 shares.
Do REITs grow over time?
They can, mainly when sponsors add new properties to the REIT ('asset infusions') and when rents rise. Because most income is paid out, REITs grow more slowly than companies that reinvest profits.
Sources
Figures checked against these official and primary sources on October 4, 2026. Government rates and promos change, so confirm on the agency's site before you act.
- Republic Act No. 9856, Real Estate Investment Trust Act of 2009
- Philippine Stock Exchange: Investing at PSE
- Securities and Exchange Commission: REIT rules
- PwC Philippines: CMEPA investment tax changes
General information, not personal financial, tax or legal advice. See our editorial standards and disclaimer. Found an outdated figure? Email support@success.ph.