REAL ESTATE INVESTMENT TRUST

REIT INVESTING
GUIDE FOR BEGINNERS

LEARN THE BASICS OF REIT IN THE EASIEST

AND UNDERSTANDABLE WAY!

YOUR REIT BUDDY

REAL ESTATE INVESTMENT TRUST

REIT
It is a stock corporation established for the purpose of
owning income generating real estate assets such as
Office Buildings, Retail Malls, Hotels, Warehouses, Land
etc.,

This is a type of investment that provides dividends to

investors in a regular basis coming from the rental income
of its real estate assets.
 WHY INVEST
IN REIT?
PASSIVE INCOME
90% of the income will be given to investors through
1 dividends. It is commonly given every Quarter (3 months).
Therefore, REITs can be a good investment choice for passive
income.

SMALL CAPITAL
REITs provide opportunity to small investors to have exposure
2 in rental properties with a very small capital. Investors don’t
have to save up hundred thousands of pesos for a sizeable
down payment.

MANAGED BY PROFESSIONALS
Investors need not to worry about tenants, repairs and
3
maintenance as the REIT hire professional Fund and Property
Managers to do the works.

LIQUIDITY
4 REIT transactions are fast, it can be bought and sold with
ease.

DIVERSIFICATION
Investors will be given a chance to diversify their portfolio.
5 They can choose to diversify by purchasing REITs that focus
on particular assets like Office, Retail, Industrial, Warehouse
and Distribution and many more.

YOUR REIT BUDDY

OWNERSHIP

WHO OWNS
THE REIT?

REITs are owned by prestigious Companies like Ayala, Megaworld,

Robinsons etc.

After launching their Initial Public offering, these companies are

required to Sell 33% of the company shares to the public.

The public is referred to as the aspiring investors who intends to

invest in REITs. The public are given the opportunity to buy and
own pieces of shares of these companies through stock exchanges.

YOUR REIT BUDDY

 PUBLICLY
LISTED REITS
AREIT FILRT
Ayala Land REIT, Inc. Filinvest REIT Corp.

RCR CREIT
RL Commercial Citicore Energy REIT
REIT, Inc. Corporation

MREIT VREIT
MREIT, INC. Vista REIT

DDMPR PREIT
DDMP REIT, Inc. Premiere Island
Power REIT
Corporation

YOUR REIT BUDDY

STOCK EXCHANGES

WHERE CAN YOU

BUY REITS?
Publicly traded REITs are listed on the Philippine Stock
Exchange (PSE) and can be bought and sold by
investors in the stock market through a Stock Broker.
You can check the legitimacy of the Stock brokers here
in Securities and Exchange Commission (SEC).

But to give you some ease, we have a list of

recommended stock brokers that our team already has
long term experience of using.
 STOCK
BROKERS
DragonFi FIRST METRO SECURITIES

Starting Capital: Starting Capital:

Php 25,000 Php 1,000

Philstocks BDO SECURITIES

Starting Capital: No minimum
Php 5,000

COL financial BPI TRADE

Starting Capital: No minimum
Php 1,000

THESE ARE THE LIST OF LEGITIMATE STOCK BROKERS THAT

OUR TEAM HAS LONG TERM EXPERIENCE OF USING.

YOUR REIT BUDDY

 Dragonfi is one of our
recommended Stock
broker as they have one
of the most advanced
Web and Mobile trading
Platform.

People behind this

company are well known
owners and part of the
business leaders here in
the Philippines.
John Carlo Lim CEO
and co-founder. Tony
Tan Caktiong (Chairman
of Jollibee) and Injap Sia
(Chairman of
DoubleDragon)

FEATURES

DIVIDEND SCREENER MARKET PULSE

INVESTING CLUB
HOW TO
REGISTER?
The secret of getting ahead is getting started. - Mark Twain.
In order to start your Dividend investing journey you need a stock
brokers account. We will cover here how to make an account,
specifically, in Dragonfi.

REGISTER

1 Go their website:
https://www.dragonfi.ph/register
You can use my referal code: 63BC2

CHOOSE AN ACCOUNT

2 Verify your account through your email. Then

you have the option if the account can be
Individual or Joint Account with another person.

PERSONAL INFORMATION
3 Enter your personal information.
Prepare 1 government ID, your signature as
well as be ready for a selfie picture for face
recognition.
 ACCOUNT FOR REVIEW

4 This will take One (1) business day to review

your account.

STARTING DEPOSIT
5 Initial Deposit is at around Php 25,000 for the
starter account. You can already use this amount
to buy Dividend stocks or REITs.

YOUR JOURNEY STARTS HERE!

6 Once your account has been verified, you can

now fund your account and start your investing
journey!
 HOW CAN YOU
EARN FROM REITS?
THERE ARE TWO (2) WAYS TO EARN FROM REITS!

CAPITAL APPRECIATION

This is the increase of

investment market price of the
REIT. Let's take for example an
investor buys a REIT at a price
of Php 10 per share and the
price rise to Php 12. The
investor gained a Php 2 capital
appreciation.

DIVIDENDS

90% of its distributable income will

be given out to investors through
Dividends. This is mandated by
the REIT law so every REITs is
required to distribute its profits.
Dividends are commonly given
every Quarter (Three months).
These income comes from
rental/lease income so it is much
more predictable compared to
other dividend stocks.

YOUR REIT BUDDY

DIVIDEND YIELD

Dividend Yield shows you how

much income you can earn in
dividend payouts per year for
every peso you invest in a REIT.

How to compute Dividend

yield?

Let’s take for example:

REIT “X” price: Php 20 per share

Dividend payout: Php 1 per share

Simply divide Dividend payout

with the price then multiply it by
100%.

(1 / 20) x 100% = 5%

Dividend Yield is 5%.

10 that
This means ML for every 1 peso
you invest, you can earn 0.05.

YOUR REIT BUDDY

REIT WEEKLY
RECAP
REIT WEEKLY RECAP is a
regular reporting of REIT
Prices and its corresponding
Dividend Yield. This is
commonly sent every week
exclusively in our REIT
community "REIT LONG
TERM INVESTORS PH".

This also includes the Year to

Date (YTD) gains or losses of
a certain REIT.

The purpose of this report is

to simply update every
members of the group about
the price, yield and price
performance of the REIT in a
regular basis.
10 ML

YOUR REIT BUDDY

DIVIDEND DATES
TO REMEMBER
IMPORTANT DATES

01 Ex-dividend Date
The date wherein investors are
no more eligible for the next
dividend payment. In order for
a dividend investor to be
qualified for the dividends
he/she should owning the REIT
before the EX-Dividend date.

02 Payment Date
The actual day when a company
distributes its Dividends to the
eligible shareholders.
HOW TO DETERMINE
A QUALITY REIT TO
INVEST IN?
Choosing the best REIT to invest in is paramount in
maximizing your returns and minimizing risks. Here are
some of the factors to consider in choosing the right
REITs for you.

01 STABLE OCCUPANCY RATES

A REIT who has maintained a stable high

occupancy rate despite poor market conditions is
a good indicator that it is less susceptible to the
risk of vacancy. A REIT who has better
occupancy rate compared to its peers or the
industry average is also a good indication of a
Quality REIT stock.

HIGH WEIGHTED AVERAGE

02 LEASE EXPIRY (WALE)
WALE refers to the lease contracts of the
tenants. A higher WALE indicates a longer time of
tenant lease expiry. Occupancy rates and rental
income are more predictable if tenants has
longer contracts in the REITs rental space.
03 DIVIDEND GROWTH

Historical Dividend growth is one of our favorite

indicator of a Quality REIT stock. Dividend
growth is a sign that the REIT is growing over
time, it is also beneficial for the investors as they
will acquire higher Dividends in the long term due
to history of strong and stable profits.

04 MANAGEABLE DEBT

High Debt should always be considered when

investing into the REIT as long term debt can be
so risky during high interest rate environment.
This can significantly reduce earnings due to high
interest expense. Low DE ratio and high interest
coverage ratio is an indicator of a Quality REIT
stock.

05 FUTURE GROWTH

Management should be transparent and clear

with the investment plans and strategies that they
are going to gear up in the future of their REIT
arm. A management with a clear plan backed up
by actions is a good REIT stock to invest in.
 CONTINUOUS
IMPROVEMENT
MONITOR THE FINANCIALS OF THE REIT
It’s important to monitor the Financial Statements of the REIT.
1
This will keep you updated about the performance and
financial status of the REIT you are invested in.

READ READ READ!

Read Books about investing, Market news, Company
2
disclosures this will keep you intact with what’s happening in
the market and the investing world.

INVEST REGULARLY
Keep it a habit to invest regularly even how small the amount
3
is. Small steps accumulated over the long term leads to
substantial results!

REINVEST ALL YOUR DIVIDENDS

4 Plant your seeds, it will become a fruit bearing tree in the long
run. Let those dividends compound over time!

STAY IN A POSITIVE COMMUNITY

Its very inspiring talking to people who has the same mindset
and energy towards investing. Staying in a community with
5
like minded people can keep you stay motivated and focused
towards your long term goal. You can join our Group Chat in
REIT LONG TERM INVESTORS PH.

YOUR REIT BUDDY

 COMMON RISK
IN REITS
Investing in REITs involves risk, here are the common risks that
every Investor should consider:

01 INTEREST RATES

When interest rates rise, investors will tend to

invest in assets with higher rate of return which
will make REITs less attractive. On the other
hand, it can also give opportunities for REIT
investors looking for bargain prices.

02 RENTAL SPACE DEMAND

Rental space demand can be alarming during a

crisis and economic change. Let's say for
example the pandemic crisis, wherein Office and
retail vacancy rates shoots up.
Emergence of AI as well as work from home set
up can also be a big risk for rental space.
03 CREDIT RISK

Credit risk arising from the rent default of tenants

or ageing of receivables can be harmful to the
profitability of the REITs. REITs primarily
undergo a strict tenant selection process but this
may be strenuous if rental demand is low.

This is commonly minimized by having security

deposits and advanced rentals from the tenants.

04 MARKET RISK

Just like other stocks, REITs are volatile. It is

driven by supply and demand. Buyers push the
price higher, sellers pull the price lower.
THANK
YOU
I hope and wish you well
with your investing
Journey!

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YOUR REIT BUDDY.

YOUR REIT BUDDY