MREIT income rises 29% as firm plans new asset infusion

MREIT, Inc., the real estate investment trust (REIT) arm of Megaworld Corporation, posted a 29% year-on-year increase in distributable income to PHP 935 million for the third quarter of 2025, driven by asset acquisitions, stronger occupancy, and steady rental growth.

Revenues for the quarter rose 42% year-on-year to PHP 1.43 billion, boosted by contributions from six office buildings acquired in 2024, higher occupancy, and continued rental escalations.

For the first nine months of 2025, MREIT recorded PHP 2.8 billion in distributable income, up 27% from the same period in 2024.

Revenues for the period reached PHP 4.13 billion, climbing 33% on the back of tenant demand and operational efficiencies across its portfolio.

Portfolio occupancy improved to 92% as of end-September 2025, rising by about 300 basis points quarter-on-quarter due to successful tenant onboarding, including business process outsourcing (BPO) firms and traditional office locators.

To support future expansion, MREIT is awaiting regulatory approval to raise its authorized capital stock to PHP 8 billion from PHP 5 billion.

The increase is expected to enable the company’s next round of property infusions.

The upcoming acquisitions include 10 office properties—nine located in McKinley Hill and one in Eastwood City—with a combined gross leasable area (GLA) of about 198,500 square meters.

Once completed, the planned infusion will expand MREIT’s total portfolio by around 41% to 680,000 square meters from the current 482,000 square meters.

The transaction remains subject to property valuation and compliance with the REIT Law’s minimum public float requirement.

MREIT is also preparing to diversify its portfolio with mall assets, supported by the strong performance and high occupancy of Megaworld Lifestyle Malls.

The planned diversification forms part of MREIT’s long-term strategy to sustain income growth and enhance shareholder value.

“Our strong performance this quarter reflects not only the resilience of our office portfolio but also our readiness for the next wave of growth,” MREIT President and CEO Jose Arnulfo Batac said.

“With market conditions turning more favorable, we are well-positioned to pursue our long-term expansion plans and deliver sustained value to our shareholders.”

MREIT declared a cash dividend of PHP 0.250478 per share, payable on Dec. 19, 2025, to stockholders of record as of Dec. 1, 2025.

Based on the Nov. 12 closing price of PHP 13.66 per share, the dividend corresponds to an annualized yield of 7.3%.

MREIT’s current portfolio consists of premium office properties within Megaworld’s integrated urban townships, including Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

The company aims to grow its GLA to 1 million square meters by 2027, leveraging Megaworld’s pipeline of income-generating assets to support its expansion plan.