Real gains from real estate: Exploring REITs in the Philippines

REITs can make real estate investment easier and more accessible. In this second article of a two-part series, let’s dive into the different types of REITs available in the Philippines and what they offer.

Author

Aug 15, 2024

Sabina Dimayuga and Jacques Jimeno

In the first article of this two-part series, we shared how Real Estate Investment Trusts allow you invest in properties without buying or managing them yourself. REITs are overseen by fund managers who call the shots on the best properties that can turn up the gains. They team up with property managers – who keep things running smooth at the facilities, handle the tenants, and ensure it’s up to code.

Now that we’ve covered the basic of REITs in "Real gains from real estate: How REITs can boost your finances, let’s get you diving deeper into the world of REITs. There are different trusts you can find in the Philippines—in fact, REIT brings its own unique vibe, tailored to match your investment style and goals. So, whether you’re into retail hubs, office spaces, or something a bit more niche, there’s a REIT for you. Check out the main types below:

🏢 Office REITs	🛍️ Retail REITs
What they offer: These REITs invest in office buildings and business parks. They generate income through leasing office spaces to various businesses.	What they offer: Retail REITs own shopping centers, malls, and other retail properties. They earn money by leasing space to retailers, from large department stores to small shops.
Benefits: Office REITs can offer stable income, especially if the buildings are leased to well-established companies with long-term leases.	Benefits: These REITs benefit from consumer spending and can provide attractive returns if the properties are in high-traffic areas.
Examples: Ayala Land REIT (AREIT): Features prime office properties such as One Ayala, Ayala North Exchange, and McKinley Exchange. Robinsons Land REIT (RCR): Includes office buildings like Cyberscape Gamma and Cyberscape Beta in Ortigas. Megaworld REIT (MREIT): Consists of office spaces within its properties like Uptown Bonifacio and Eastwood City. Filinvest REIT (FILRT): Includes office properties such as Filinvest One and Filinvest Two in Northgate Cyberzone Alabang.	Examples: Ayala Land REIT (AREIT): Includes malls such as Glorietta, Vertis North, and Ayala Malls The 30th. Robinsons Land REIT (RCR): Features prominent retail spaces such as Robinsons Novaliches, Robinsons Cainta, and Robinsons Sta. Rosa. Vista REIT (VREIT): Consists of community malls such as Vista Mall Las Pinas, Vista Mall Antipolo, and Vista Mall Pampanga.

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Office REITs

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Retail REITs

What they offer:

These REITs invest in office buildings and business parks. They generate income through leasing office spaces to various businesses.

What they offer:

Retail REITs own shopping centers, malls, and other retail properties. They earn money by leasing space to retailers, from large department stores to small shops.

Benefits:

Office REITs can offer stable income, especially if the buildings are leased to well-established companies with long-term leases.

Benefits:

These REITs benefit from consumer spending and can provide attractive returns if the properties are in high-traffic areas.

Examples:

Ayala Land REIT (AREIT): Features prime office properties such as One Ayala, Ayala North Exchange, and McKinley Exchange.

Robinsons Land REIT (RCR): Includes office buildings like Cyberscape Gamma and Cyberscape Beta in Ortigas.

Megaworld REIT (MREIT): Consists of office spaces within its properties like Uptown Bonifacio and Eastwood City.

Filinvest REIT (FILRT): Includes office properties such as Filinvest One and Filinvest Two in Northgate Cyberzone Alabang.

Examples:

Ayala Land REIT (AREIT): Includes malls such as Glorietta, Vertis North, and Ayala Malls The 30th.

Robinsons Land REIT (RCR): Features prominent retail spaces such as Robinsons Novaliches, Robinsons Cainta, and Robinsons Sta. Rosa.

Vista REIT (VREIT): Consists of community malls such as Vista Mall Las Pinas, Vista Mall Antipolo, and Vista Mall Pampanga.

⚡ Energy REITs	🏠 Hospitality REITs
What they offer: Energy REITs invest in renewable energy infrastructure like solar farms and wind turbines. They generate income by leasing these properties to energy companies.	What they offer: Hospitality REITs invest in hotels, resorts, and other tourism-related properties. They earn income through room bookings, events, and other hospitality services.
Benefits: These REITs offer growth potential as the demand for renewable energy increases.	Benefits: These REITs can provide high returns, especially in popular tourist destinations, although they may be more susceptible to economic fluctuations.
Examples: Citicore Energy REIT (CREIT): Includes solar energy projects like the Clark Solar Power Plant and Toledo Solar Power Project in Cebu. Premiere Island Power REIT (PREIT): Invests in land and buildings for renewable energy projects across the Philippines for S.I. Power Corporation (SIPCOR) in Siquijor and Camotes Island Power Generation Corporation (CAMPCOR) in Cebu.	Examples: Megaworld REIT (MREIT): Includes hotel properties like Savoy Hotel Manila and Belmont Hotel Manila. Ayala Land REIT (AREIT): Features hospitality properties such as Holiday Inn Makati, Seda Hotel Cebu, and Seda Lio in El Nido.

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Energy REITs

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Hospitality REITs

What they offer:

Energy REITs invest in renewable energy infrastructure like solar farms and wind turbines. They generate income by leasing these properties to energy companies.

What they offer:

Hospitality REITs invest in hotels, resorts, and other tourism-related properties. They earn income through room bookings, events, and other hospitality services.

Benefits:

These REITs offer growth potential as the demand for renewable energy increases.

Benefits:

These REITs can provide high returns, especially in popular tourist destinations, although they may be more susceptible to economic fluctuations.

Examples:

Citicore Energy REIT (CREIT): Includes solar energy projects like the Clark Solar Power Plant and Toledo Solar Power Project in Cebu.

Premiere Island Power REIT (PREIT): Invests in land and buildings for renewable energy projects across the Philippines for S.I. Power Corporation (SIPCOR) in Siquijor and Camotes Island Power Generation Corporation (CAMPCOR) in Cebu.

Examples:

Megaworld REIT (MREIT): Includes hotel properties like Savoy Hotel Manila and Belmont Hotel Manila.

Ayala Land REIT (AREIT): Features hospitality properties such as Holiday Inn Makati, Seda Hotel Cebu, and Seda Lio in El Nido.

The right REIT for you

When it comes to picking the perfect REIT for you, it's all about knowing your goals and how much risk you’re willing to take on. Here’s are tips to help choose:

Looking for stability and steady income? Office and residential REITs might just be your best bet.

Craving a bit more excitement and potential growth? Retail and energy REITs could be your give higher returns, especially if you’re taking a chance on booming areas.

Feeling adventurous and chasing higher returns? Hospitality REITs might bring in bigger bucks, but they can be volatile.

Understanding the different types of REITs helps you make informed investment decisions. Whether you're looking for stable income, growth potential, or high returns, there's a REIT that fits your investment goals. To start exploring REITs and begin your investment journey, consider opening a BPI Trade account today at the BPI Trade website.

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