By Lenie Lectura | Business Mirror
January 4, 2023
Megaworld Corp.’s real estate investment trust (REIT), MREIT Inc., said it is ready to implement a three-year strategy meant to increase shareholder value.
In a filing with the stock exchange, MREIT cited a proactive asset management and enhancement approach meant to drive organic growth. The fund manager, in partnership with the property manager, will manage the company’s property portfolio to generate more revenues and net operating income, and optimize occupancy levels.
Also, MREIT vowed to preserve tenant loyalty through “enhanced, reliable and consistent service and support.” To achieve this, the property and fund manager will work together to ensure that the tenants receive continued and dedicated service to drive high retention rates.
The company will work on optimizing tenant mix to maximize the desirability of the properties. By having a good mix of tenants in each property, MREIT could generate a higher percentage of rental income from returning lessees and ensure sustained growth in rental rates.
MREIT also intends to leverage on economies of scale to drive profitability.
It will pursue sustained inorganic growth through well-planned and timed asset acquisition and investments.
A prudent and focused management of capital and risk will be enforced, MREIT added. The fund manager will adopt financing policies to maximize risk-adjusted returns to shareholders, consider accessing the capital markets to manage the company’s financial risk exposures, and assess alternative forms of capital and other capital management strategies.
As part of its investment goals, MREIT intends to end 2024 with 500,000 square meters in portfolio gross leasable area (GLA), diversify its portfolio by investing in other townships and other real estate properties, and achieve an annual total shareholder return of at least 10 percent through organic growth and new acquisitions.
The company earlier reported a net income of P1.9 billion at end-September last year from P807 million recorded a year ago. During the period, revenues also increased to P2.7 billion from P938.4 million.