Income of Megaworld REIT hits ₧687.2M in Jan-march

Mreit inc., the real estate investment trust (reit) of Megaworld Corp., said its income for the first three months of the year came in at P687.2 million, while revenues reached P901.6 million.

At the end of 2021, the company had a net income of P2 billion and revenues of P1.46 billion as it completed the acquisition of properties from its sponsor Megaworld.

Mreit had its stock market debut in the middle of last year.

Distributable income for the first quarter reached P639 million, 18 percent higher compared to the previous quarter.

“Our solid performance in the first quarter of 2022 affirms our efforts to sustain Mreit’s growth via a combination of organic and inorganic means. The combination of rent escalation, steady occupancy, and implementation of our acquisition plans puts us on track to deliver on our targeted returns for our shareholders in 2022,” Kevin Andrew L. Tan, the company’s president and CEO, said.

Mreit recently declared dividends amounting to P0.243 per share to its shareholders based on its income for the first quarter. The company aims to declare dividends amounting to P1 per share for the year, 6 percent higher than originally contemplated in the company’s REIT plan.

The company will acquire an additional four prime properties worth P5.3 billion. The acquisition will be undertaken via a property for share swap and is subject to the approval of the Securities and Exchange Commission. Once completed, the acquisition will expand Mreit’s gross leasable area (GLA) portfolio by 16 percent to 325,000 square meters.

“We hope to complete the acquisition within the month of May. We look forward to the completion of this deal as it will further cement Mreit’s presence in the Fort Bonifacio area, which continues to command one of the highest rental rates in the Philippines today,” Tan said.

Last December, the company completed the acquisition of four incomegenerating properties amounting to P9.1 billion. This expanded Mreit’s GLA portfolio by 25 percent to 280,000 square meters from 224,000 square meters during its initial public offering with an occupancy rate averaging at 96 percent.

As of the end of March, the company’s portfolio value stood at P59.3 billion.