MREIT’S distributable income surges to P2.8B, up by 13%

MREIT, Inc., the REIT company of the country’s largest office landlord Megaworld Corporation, registered a distributable income of P2.8-billion in 2023, up by a strong 13% from the P2.5-billion recorded in 2022.

Revenues, likewise, grew by 14% year-on-year to P4.2-billion, fueled by the full-year contribution of the additional four Grade-A office towers from January 2023. Steady rental escalations among current tenants also supported revenue growth.

The company ended the year with an occupancy rate of 96%, not only improving from the previous quarter but also significantly exceeding Metro Manila office industry’s average occupancy rate of around 81% to 82%, based on figures from property consultants. This outperformance underscores MREIT’s competitive edge and its role as a leader in the office sector.

“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,” says Kevin L. Tan, president and chief executive officer, MREIT, Inc.

In 2023, MREIT was awarded a Golden Arrow by the Institute of Corporate Directors (ICD), affirming MREIT’s strong commitment to corporate governance practices. The Golden Arrow highlights MREIT’s adherence to the Philippine Code of Corporate Governance and internationally recommended corporate governance practices by the ASEAN Corporate Governance Scorecard (ACGS).

“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,” adds Tan.

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.