MREIT muscles up with P13.15-B assets

‘We are immediately working on the next set of acquisitions to reach our target assets under management before the year concludes’

MREIT Inc., a real estate investment trust company sponsored by Megaworld Corp., is well on its way to hitting its portfolio expansion targets as it moves to acquire six new office properties worth P13.15 billion.

The company said over the weekend that the buyout will grow its portfolio by 157,000 square meters (sqm) or by 48 percent to 482,000 sqm — subject to the approval of the Securities and Exchange Commission.

“The acquisition of these properties moves us closer to our target portfolio of 500,000 sqm by the end of 2024. This transaction not only supports the sustained growth of MREIT but is also dividend accretive to our shareholders.”

“We are immediately working on the next set of acquisitions to reach our target assets under management before the year concludes,” said Kevin L. Tan, president and chief executive officer of MREIT Inc.

Assets, shares swap

The assets that MREIT will buy include Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District.

The properties will be exchanged for 926,162,000 secondary shares of MREIT at a share price of P14.20 per share — representing a premium of 10 percent over MREIT’s closing price of P12.94 per share last 10 May.

The purchase prices of the properties were determined based on appraisal reports. These reports were reviewed and approved by a third-party fairness opinion. Subsequently, the reports were presented to and approved by the company’s RPT Committee and Board of Directors.

Meanwhile, MREIT declared cash dividends of P0.2460 per share to its shareholders based on its distributable income in the first quarter.

Shareholders of record as of 24 May will receive dividends on 14 June. As of the closing share price of P12.94 on 10 May, bringing MREIT’s annualized dividend yield to 7.6 percent.

To date, MREIT’s portfolio covers 18 office properties located in four Megaworld premier townships in Quezon City, Taguig City and Iloilo City.

KENT NISHIMURA/AGENCE FRANCE-PRESSE Top-rung powwow US Federal Reserve Chairperson Jerome Powell chats with Secretary of the Treasury Janet Yellen before the start of a meeting of the Financial Stability Oversight Council at the Treasury Department. The council received an update from the Financial Market Utilities Committee and an update on market developments related to corporate credit, as well as a presentation and to vote on a report on nonbank mortgage servicing.