MREIT, INC. posted a 31% increase in first-quarter (Q1) net income to P963 million, up from P733 million in the same period last year, driven by contributions from recently acquired properties.
First-quarter revenues rose by 25% to P1.34 billion, compared with P1.08 billion in the same period in 2024, the real estate investment trust (REIT) of Megaworld Corp. said in a regulatory filing on Thursday.
For the January-to-March period, distributable income grew by 26% to P932 million from P742 million last year. The Securities and Exchange Commission’s implementing rules and regulations on REITs define distributable income as net income adjusted for unrealized gains and losses.
The growth was primarily driven by six office properties, valued at P13.15 billion, acquired in October 2024, as well as sustained rental escalations across the company’s portfolio.
The six properties include Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District, with a total gross leasable area (GLA) of 156,631 square meters (sq.m.).
“This solid start to the year demonstrates the strength of our expanded portfolio and the continued demand for prime office spaces in our strategically located townships,” said MREIT President and Chief Executive Officer Kevin L. Tan.
“We remain focused on optimizing returns from our existing assets while exploring further acquisition opportunities that align with our growth strategy,” he added.
MREIT’s GLA currently stands at 482,000 sq.m., up by 48% following the completion of the third wave of asset acquisitions last year.
The company’s portfolio consists of 24 prime office properties across five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.
The company also said it is on track to expand its portfolio by 600,000 sq.m. by year-end and aims to increase its GLA by 100,000 sq.m. annually to achieve its target of 1 million sq.m. by 2030.
Following its first-quarter performance, MREIT declared cash dividends of P0.25047 per share, payable on June 6 to stockholders of record as of May 23.
This dividend reflects an annualized yield of 7.4%, based on the last closing price of P13.58 per share as of May 7.
MREIT shares closed unchanged at P13.58 per share on Thursday. — Revin Mikhael D. Ochave
