Real Estate Investment Trusts in the Eyes of the Investors

Abstract

Real Estate Investment Trusts (REITs) have emerged as a significant and accessible investment vehicle within the Philippines' vital real-estate sector. Despite their recent growth, a knowledge gap persists regarding their financial performance trends and the specific perceptions of Filipino investors in this emerging market. This study explored the experiences and perceptions of REIT investors from Western Visayas to uncover their motivations and investment strategies. This case study collected data through in-depth interviews with certified public accountant investors. Data were thematically analyzed. A combination of personal considerations, specific goals, and access to particular investment methods shape the behaviors and thoughts of the participants who used different ways in learning about REITs. Decision to invest was primarily motivated by desires to acquire passive income and increase the sums of money through time. Participants shared a risk-averse and conservative investment behavior; adopted a long-term perspective, expecting substantial profits from their investments rather than trying to make money out of short-term fluctuations. Online brokerage apps were utilized to manage their investments, highlighting the accessibility of modern financial technology. Though the participants revealed mixed emotions related to their investment experiences, they are optimistic long-term outlook for real estate investments, expecting continued value appreciation. They viewed investing as a long-term endeavor for financial security. While the appeal of Philippine REITs lies in their capacity for providing steady passive income, their actual value and ability to prevent investor regret depend on the degree to which they are researched and understood by the person purchasing them.