REIT stands for Real Estate Investment Trust.
REITs are tradable securities whose underlying assets are property portfolios that earn from either real estate sales or rent.
They are issued by property developers and sold to investors whose funds are then reinvested into new property developments. [via Inquirer.net]
REIT makes it easier for small time investors to participate in investing in the real-estate market.
Although the REIT law was passed way back in 2009, there are still no offers available in the market. Issuers are not participating because of the government's stand on taxing this investment vehicle. Industry players are asking for a middle ground to this law, but the department of finance is not budging.
PSE will propose a set of regulations that will hopefully address the issue of the players involved. They target to have the first REIT offering in 2013.
Personally, this is an interesting opportunity because I believe real-estate in the Philippines is still undervalued. There's much room to grow thus the potential for generating income is also great.