By Iris Gonzales | The Philippine Star
January 4, 2023
MANILA, Philippines — MREIT Inc., the Andrew Tan-led real estate investment trust (REIT), is on track with its plan to expand its portfolio to 500,000 square meters in gross leasable area by 2024.
In its three year investment plan filed with regulators yesterday, MREIT said it is on track to diversifying into other types of real estate properties aside from its existing portfolio of mostly office and commercial assets.
Other possible investments for MREIT are industrial, logistics, warehouse, other real property sectors that meet the company’s investment criteria for Grade A, centrally-located, stably occupied, and income producing properties.
It also plans to diversify into townships and other real estate properties.
Depending on opportunities, MREIT may choose to diversify into other high-growth geographic areas.
These include Cebu, Bacolod, and Pampanga, and other growth areas in the country where MREIT sponsor Megaworld’s townships are located.
MREIT plans total annual shareholder return of at least 10 percent through organic growth and new acquisitions.
From January to Septembe, MREIT registered a net income of P1.9 billion, up from the P807 million recorded a year ago.
This was driven by revenues of P2.7billion, also higher than the P938.4 million registered a year ago.
MREIT recorded an average occupancy of 96 percent during the nine month period.
In October 2021, MREIT made its debut on the Philippine Stock Exchange (PSE).
A year after listing, MREIT has grown its portfolio size by 25 percent to 280,000 square meters and its property value by 20 percent to P59.3 billion.
The company will continue to work toward providing long-term attractive returns for its shareholders from a combination of organic ñgrowth and new acquisitions.
Last April, MREIT announced the acquisition of an additional four prime properties worth P5.3 billion.
This will increase the portfolio size by 16 percent to 325,000 square meters and its property value by nine percent to P64.5 billion.
These properties are located in two of Megaworld’s most prime township developments to date: Iloilo Business Park in Mandurriao, Iloilo and McKinley West in Taguig City.
MREIT’s portfolio covers 18 office properties 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.