Real Estate Investment Trust Report ----

Real Estate Investment Trust

1. Presented by: Fatima Flor A. Mores
REIT
RECONIA 008
REAL ESTATE INVESTMENT TRUST

2. Dividend
a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits
Mutual Fund
Stock Corporation
Asset
or-profit organizations that issue shares of stock to shareholders (also known as stockholders) to raise
capital, with each share representing partial ownership of the corporation and granting shareholders
certain ownership rights that shape company policies
a company that pools money from many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its
portfolio. Investors buy shares in mutual funds.
an item of property owned by a person or company, regarded as having value and available to
meet debts, commitments, or legacies.

3. WHAT IS REIT?
-from PSE website
A Real Estate Investment Trust (“REIT”) is a stock corporation established
principally for the purpose of owning income-generating real estate
assets, such as apartment buildings, office buildings, medical facilities,
hospitals, hotels, resorts, highways, warehouses, shopping centers,
railroads, among others. It is a type of investment instrument that
provides a return to investors derived from rental income of the
underlying real estate asset. Returns are distributed to the investors in
the form of dividends

4. WHAT IS REIT?
A Real Estate Investment Trust (REIT) is a company
principally organized for owning income-generating
real estate assets. In the Philippines, REITs allow
investors to buy shares of a company with a
portfolio of real estate assets

5. REIT is now available in the
Philippines. Its concept is taken from
mutual funds and opens the
opportunity for investors to own,
manage, or finance income-
generating real estate assets. As with
traditional real estate investments,
REITs allow investors to make money
from residential or commercial
properties. It is an attractive option
for those who want to maximize their
earning potential. However, to be on
top of it, you’d first need to learn
about the processes they involve
and how they can impact your
revenue. Aside from that, you should
also get an overview of how they
differ from direct real estate
investing.

6. Higher Earning Potential
Very Affordable
Zero Conract and Obligation
Portfolio Diversification
Lower Risk
Easy to Withdraw

7. Market Crash
Disappointing Company Performance
Poor Economic Outlook

8. How to Invest in REITs in the Philippines?
Step 1: Open a trading platform that offers REITs
Step 2: Look for a well-established REIT company
Step 3: Plan your trading strategy
Step 4: Buy your shares of REIT
Step 5: Receive your dividends from REIT
Step 6: Sell your shares of REIT
Step 7: Reinvest your funds with REIT

9. Ayala Land REIT (AREIT)
DoubleDragon Properties REIT (DDMPR)Filinvest REIT (FILRT) Robinsons Land
Commercial REIT (RCR)
Megaworld REIT (MREIT)
Citicore Energy REIT (CREIT)
Vista Land REIT (VREIT)
Premiere Island Power REIT (PREIT)

11. FAQS
How to earn dividends from REITs?
To earn dividends from REITs, you need to buy some shares of
an established REIT company with a good track record. Hold
your shares for a year or more and wait for the payment of cash
dividends (they are paid every quarter). You can also invest
more shares regularly to earn more dividends.

12. FAQS
Do REITs have fees?
Yes, because REITs are traded on the Philippine Stock
Exchange (PSE). REIT fees include a commission fee of .25% of
the gross trade, .005% PSE Transaction Fee, Securities
Clearing Corp. of the Philippines (SCCP) fee of .01%, 12% VAT of
the commission, and sales tax of .006% when selling shares.

13. FAQS
What is the best REIT in the Philippines?
The best REIT in the Philippines in terms of performance,
dividend yield, and portfolio composition is Ayala Land REIT.
AREIT has an outstanding performance since its inception
amidst market challenges. Although its estimated dividend
yield of 6% is lower than the other REITs, it’s still decent.
AREIT has a strong moat and is backed up by Ayala Land, Inc.,
one of the largest property developers in the Philippines.

14. FAQS
Which REIT in the Philippines pays the highest dividend?
There are seven REITs on the Philippine Stock Exchange, and DDMP REIT
(DDMPR) has the highest projected dividend yield as of this date. But that
doesn’t mean it’s the best performing REIT in the country.

15. FAQS
Are REITs better than stocks?
Both REITs and stocks are better investments than regular deposit
accounts because REITs and stocks can generate passive income
through dividends and growth value. Likewise, both assets are
volatile; hence, investors must consider the risks and execute a
good strategy to manage their portfolio.

16. FAQS
Are REITs better than stocks?
Both REITs and stocks are better investments than regular deposit
accounts because REITs and stocks can generate passive income
through dividends and growth value. Likewise, both assets are
volatile; hence, investors must consider the risks and execute a
good strategy to manage their portfolio.

17. FAQS
Can you lose money investing in REITs?
Yes, you can lose money investing in REITs when you sell
your shares for less than your buying price. To avoid losses,
invest only in a stable REIT company and buy shares
periodically. Hold your shares until you earn the dividends
and until the market value of your REIT shares grows over
time.