REITs Philippines: What They Are and How to Start Investing With Less Than PHP 5,000

Written by Justin Nonato

CONTENTS

What is REITs?
Lists
How to start?
REITs vs Buying Property
FAQs

You want to invest in Philippine real estate. But you do not have PHP 2 million for a condo or PHP 1 million for a lot. You are 22 years old, or 35 and still renting, or an OFW saving for something bigger.

A Real Estate Investment Trust lets you own a piece of income-generating Philippine property, malls, office buildings, renewable energy land, warehouses, without buying the property yourself. You buy shares on the Philippine Stock Exchange, you receive dividends every quarter, and you can sell those shares any time the market is open. It is real estate investing made accessible to anyone with a brokerage account and a few thousand pesos.

This guide explains what REITs are, how they work in the Philippines, which ones are worth knowing about, and exactly how to start. This post is part of the Real Estate Investment Philippines complete guide.

Disclaimer: This is not a financial advice nor advertisement.

What Is a REIT and How Does It Work in the Philippines?

REITs are companies that own and operate real estate properties to generate income. They include hotels, data centers, cell towers, hospitals, commercial areas, office spaces, shopping centers, and warehouses. Investors prefer REITs because of diversification, lower risk, and higher returns compared to a direct savings deposit.

Under Section 4 of Republic Act 9856, the Philippine REIT law, a REIT must distribute a total of at least 90 percent of its distributable income annually as dividends to its shareholders. This mandatory distribution is what makes REITs attractive income investments.

In plain terms: the REIT collects rent from tenants in its properties, keeps a small portion for operations and growth, and distributes the majority to you as dividends. You do not manage tenants. You do not fix leaking roofs. You do not deal with property taxes. You simply receive your share of the rental income every quarter.

Which REITs Are Listed on the Philippine Stock Exchange Right Now?

Eight REITs are currently listed on the Philippine Stock Exchange as of early 2026: AREIT backed by Ayala Land, RCR backed by Robinsons Land, MREIT backed by Megaworld, DDMPR, FILRT backed by Filinvest, CREIT the first renewable energy REIT in the Philippines, VREIT backed by Vista Land and Lifescapes, and PREIT.

1. AREIT: The Benchmark

AREIT is the first REIT ever listed on the Philippine Stock Exchange, launched by Ayala Land, one of the most trusted names in Philippine real estate. AREIT was included in the PSEi benchmark index in February 2025, the first REIT to achieve this distinction.

AREIT typically offers dividend yield of around 5.7 to 6.1 percent. It is the largest REIT by market capitalization and is considered the most stable and lowest-risk entry point for first-time REIT investors in the Philippines.

Many investors considers AREIT the benchmark for Philippines REITs because of its strong sponsor, consistent dividend payments, and steady long-term growth.

2. MREIT: Higher Yield

MREIT is sponsored by Megaworld Corporation and owns a growing portfolio of Grade A office buildings, primarily located in major business districts such as Eastwood City, McKinley Hill, and Iloilo Business Park.

Compared with some other Philippine REITs, MREIT has historically offered a relatively higher dividend yield while maintaining a healthy occupancy rate. The company also has room to expand through future property infusions from Megaworld, which may support both rental income and dividend growth over time.

MREIT may be a good choice for investors seeking a balance between attractive dividend income and long-term capital appreciation.

3. CREIT: The Renewable Energy Differentiator

CREIT does not own buildings. It owns land leased long-term to renewable energy operators. Cash flows are contract-based, which means more predictable income streams. Best for investors who want income plus exposure to the growing Philippine renewable energy sector.

How Much Can You Earn From Philippine REITs?

Philippine REITs yield between 5 percent and 13 percent per year, paid quarterly. The higher the yield, the higher the risk. Not every high-yield REIT has the asset quality to back it up long-term.

A practical example: if you invest PHP 50,000 in AREIT at a 6 percent annual dividend yield, you receive approximately PHP 3,000 per year, or PHP 750 per quarter, credited automatically to your brokerage account. If you reinvest those dividends by buying more shares, the compounding effect accelerates your portfolio growth over time.

How Do You Start Investing in REITs in the Philippines?

Step 1: Open a Stock Brokerage Account

To buy Philippine REITs, you first need to open an account with a Philippine Stock Exchange (PSE) broker. Popular options for beginners include COL Financial, FirstMetroSec, and DragonFi. Opening an account is usually completed online in about 15 to 30 minutes. You will typically need a valid government-issued ID, your TIN, and any additional documents required by your chosen broker.

Personally, I use DragonFi and GoTrade because I find both platforms beginner friendly and easy to navigate. When I opened my COL Financial account, it required a ₱25,000 initial deposit. In comparison, I found DragonFi much more accessible because I was able to start investing with a much smaller amount. If you’re a beginner or want to start investing gradually, a broker with a lower investment requirement may be a better choice.

Step 2: Fund Your Account

Transfer funds from your bank to your brokerage account. Most brokers accept transfers from major Philippine banks. The minimum useful investment amount depends on the current share price and board lot of your chosen REIT, but ₱1,000 to ₱5,000 is typically enough to buy one board lot of any listed Philippine REIT.

Step 3: Search for Your REIT and Place a Buy Order

Just like buying stocks, search for the REIT stock symbol in your broker platform and place an order. The symbols are straightforward: AREIT for Ayala REIT, MREIT for Megaworld REIT, RCR for RL Commercial REIT, CREIT for Citicore Energy REIT.

Step 4: Collect Dividends and Reinvest

Dividends are credited automatically to your brokerage account, usually quarterly or semi-annually. The smartest long-term strategy is to reinvest those dividends by buying more shares, compounding your position over time.

REITs vs Buying Property Directly: Which Is Better?

Both are promising. The honest comparison:

REITS

Lower initial investment
high liquidity (you can sell any trading day)
no property management
diversification
dividends paid quarterly
downside: you have no control over the properties

PROPERTY

Full control
Asset is Tangible
Long Term Capital appreciation
downside: need a huge amount to start may it be a loan or cash
need active management if renting out

What Should You Watch Out for When Investing in Philippine REITs?

When choosing your REIT investment, pay attention to portfolio composition (what properties are included), location of properties (whether within CBD, BPO hub, or a booming commercial area), dividend yield (whether it can beat inflation), quality of tenants and length of lease contracts, and financial health of the REIT company.

The office property sector faces headwinds in 2026 due to increased vacancy rates as some BPO companies reduce their office footprint. REITs heavily concentrated in office buildings carry more risk than those with diversified or retail-focused portfolios. Mall foot traffic has recovered strongly, making retail-focused REITs more resilient in the current environment.

Frequently Asked Questions About REITs in the Philippines

Are REITs Safe for Beginners?

REITs are one of the most beginner-friendly investment products on the Philippine Stock Exchange. They are regulated under Republic Act 9856, listed and traded transparently, and required by law to distribute most of their income as dividends. The main risks are market price fluctuation and dividend variability tied to property sector performance. They are not risk-free, but they are significantly less risky than individual stocks and more accessible than direct property investment.

Do I Need a Large Amount to Start Investing in REITs?

No. The minimum investment is one board lot of shares, which costs PHP 1,000 to PHP 5,000 for most Philippine REITs at current prices. You can start small and add to your position gradually over time as your savings allow.

How Often Are REIT Dividends Paid in the Philippines?

Most Philippine REITs pay dividends quarterly. Some pay semi-annually. The dividend amount varies based on the income earned by the REIT’s properties in that period. You can check the dividend history and payment schedule of any listed REIT on the PSE website or in your broker’s platform.