Megaworld REIT’s income hits ₧638M in April-June

MREIT Inc., the real estate investment trust (REIT) of Megaworld Corp., said its distributable income reached P638 million in the second quarter.

The company, which was just formed in the third quarter of 2021, said it closed the second quarter with a revenue of P893 million and a net income of P677 million. Both figures were 1 percent lower than the first quarter’s revenue of P901.56 million and net income of P687.17 million.

Occupancy, meanwhile, registered a high of 96 percent as new contracts have been secured during the second quarter, the company said.

MREIT’s board also approved the declaration of dividends amounting to P0.2468 per share, which is 1.6 percent higher than the previous quarter. This brings the company’s annualized dividend yield to 6.2 percent.

“We remain focused on delivering attractive returns to MREIT investors. We continue to manage our assets proactively, which allowed us to register net positive take-up in our portfolio,” said Kevin Andrew L. Tan, the company’s president and CEO.

This period’s performance does not yet include additional income arising from the recently announced property-for-share swap transaction, the company said.

Last April, MREIT announced the acquisition of an additional four properties worth P5.3 billion. The acquisition is still subject to the approval of the Securities and Exchange Commission.

These properties are in two of Megaworld’s township developments in Iloilo Business Park in Mandurriao, Iloilo and McKinley West in Taguig.

Once completed, the acquisition will expand MREIT’s portfolio gross leasable area by 16 percent to 325,000 square meters covering 18 office properties in four Megaworld developments.

In May, Tan announced that Megaworld will infuse another P15 billion worth of commercial assets into MREIT.

“For our next infusion, we are already considering properties from townships in key growth areas outside of Metro Manila where MREIT does not have a presence yet. This will further diversify our portfolio and allow us to tap into other growth centers around the country,” he said.

“In line with our vision, we prepared a roadmap that calls for the expansion of MREIT’s property portfolio to 1 million square meters before the end of the decade. Given our access to Megaworld’s extensive office portfolio amounting to 1.4 million square meters, we believe that this is achievable. In 2022 alone, we are looking to acquire up to P20 billion worth of office properties from our sponsor.”