By Eileen Mencias
Looking for a solid investment?
Leechiu Property Consultants Director for Investment Sales Tam Angel is betting on real estate investment trusts (REITs).
“They should be a very important, critical part of every real estate investment portfolio. They are very solid and not significantly affected by short- to mid-term news because the dividends are based on contracts that span 3, 5, 7, to 10 years. They are backed by tangible assets,” Angel said.
Angel pointed to the performance of REITs during a recent market dip triggered by former U.S. President Donald Trump’s tariff policies, which caused a 4% single-day drop in equities.
While the property sector declined by 1.3% and the broader stock exchange gained a modest 1.6%, Angel said REITs surged 22% as a basket.
“The real stars in this story are the REITs. If you look at them as a basket, the stock exchange is up 1.6%, the property sector is down 1.3%, but the REITs sector is up by 22%,” Angel noted. “That’s why we like REITs.”
Although the REIT law was enacted in 2009, the first listing didn’t materialize until 2020, following a decade-long wait for enabling tax and regulatory reforms.
REITs offer individual investors exposure to commercial real estate without the burdens of direct ownership. These listed entities generate steady income through leased properties and provide the added benefit of liquidity.
Even with the imposition of a 20% U.S. tariff on Philippine exports, Angel said REIT dividends are unlikely to take an immediate hit.
“They’re solid, not just in times of crisis,” Angel said. “Now that sentiment has turned positive, REITs are still leading the charge.”
SOURCE:
https://bilyonaryo.com/2025/07/10/leechiu-explains-why-reits-deserve-a-spot-in-every-investors-portfolio/property/
