New offices boost MREIT profits to ₱2.8 billion

MREIT Inc., the real estate investment trust of the country’s largest office landlord Megaworld Corporation, registered a 13 percent growth in attributable net income to ₱2.8 billion last year from the ₱2.5 billion earned in 2022.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its revenues rose by 14 percent year-on-year to ₱4.2 billion, fueled by the full-year contribution of the additional four Grade-a office towers from January 2023.

It added that “steady rental escalations among current tenants also supported revenue growth.”

The company ended the year with an occupancy rate of 96 percent, not only improving from the previous quarter but also significantly exceeding Metro Manila office industry’s average occupancy rate of around 81 percent to 82 percent, based on figures from property consultants.

“MREIT’S success in 2023 reflects the quality of our assets and our strong tenant relationships. Our approach to focusing on top-tier properties within Megaworld townships was crucial to our unparalleled success, allowing us to maintain elevated occupancy rates and keeping our growth momentum through the year,” said MREIT President and CEO Kevin L. Tan.

He added that “as we look ahead, the focus on growth and quality will continue to be the pillars of our company. We are actively working on expanding our portfolio through the strategic asset acquisition announced last year, allowing MREIT to remain at the forefront of the industry in delivering sustained value to our stakeholders.”

To date, MREIT’S portfolio covers 18 office properties located in four Megaworld premier townships: 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper Mckinley, 18/20 Upper Mckinley, and World Finance Plaza in Mckinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in Mckinley West.