A REIT just made its stock market debut. Here's how it lets you invest in real estate without buying property.

Originally reported as: “XYZ REIT closes ₱12 billion IPO, begins trading on the PSE”

A real estate investment trust, or REIT, completed its initial public offering and began trading on the Philippine Stock Exchange this week, giving ordinary investors a new way to own a slice of income-producing property like malls, office towers, or warehouses. Unlike buying stock in a bank or a food company, buying REIT shares means owning a piece of a portfolio of buildings that collect rent, and most of that rental income gets passed back to shareholders as regular dividends. The minimum investment is a fraction of what it would cost to buy even the smallest condo unit, which is the whole point: REITs open up real estate investing to people who could never save up for a down payment on a rental property. Demand for the offering was strong, reflecting how popular REITs have become with Filipino investors hunting for steady dividend income. For anyone who has ever thought about buying a rental property but balked at the price tag, a REIT is worth understanding.