MREIT, Inc., the real estate investment trust company of Megaworld Corp., announced on Tuesday that its distributable income in the first three months of the year increased by 18% to P639 million quarter on quarter, driven by recent acquisitions.
“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,” MREIT President and Chief Executive Kevin L. Tan said in a statement.
Meanwhile, the company’s net income registered at P687.2 million with revenues at P901.6 million. It did not give comparative numbers.
Last December, MREIT completed the acquisition of four properties worth P9.1 billion, expanding its portfolio’s gross leasable area (GLA) by 25% to 280,000 square meters (sq.m.) from 224,000 sq.m. during its initial public offering in September last year.
As of end-March 2022, the company’s portfolio value stood at P59.3 billion, with an occupancy rate averaging at 96%.
MREIT also announced its plan to acquire 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,” the company said.
Once completed, the acquisition will expand its portfolio GLA by 16% to 325,000 sq.m.
“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,” Mr. Tan said.
Last week, the real investment trust declared dividends amounting to P0.243 per share to its shareholders based on its income for the first quarter of 2022.
The company aims to declare dividends amounting to P1.00 per share for 2022, or 6% higher than originally contemplated in the company’s REIT plan.
“This target does not yet consider the upside impact of the acquisitions that MREIT is contemplating this year,” it added.
The company’s principal investment strategy is to invest in income-generating real estate.
“To meet the investment criteria, a potential new property should be located in a prime location in either Metro Manila or key provinces in the Philippines; be primarily (but not exclusively) focused on Grade A office and retail properties; and have stable occupancy, tenancy, and income operations,” it said.
At the stock exchange on Monday, MREIT shares were unchanged at P17.50 apiece. — Luisa Maria Jacinta C. Jocson