MREIT revenues up 6% in Q3

MANILA, Philippines — MREIT Inc., the real estate investment trust of tycoon Andrew Tan, recorded a six percent increase in revenue in the third quarter of the year to P711.2 million on the back of higher rental income.

Rental income reached P583.7 million during the period or five percent higher than the target set in the company’s REIT plan.

This marks the first full quarter of operations of MREIT since it acquired 10 prime Grade A office assets from Megaworld Corp. in June.

Due to increase earnings, MREIT plans to declare dividends within the month of October in line with the REIT plan.

The company is looking at declaring dividends of at least P0.24 per share.

Backed by Megaworld, MREIT aspires to be the largest office REIT in Southeast Asia because of the company’s long runway for growth.

MREIT president and CEO Kevin Tan said the declaration of dividends forms part of the initial tranche of dividends that the company will declare for fiscal year 2022.

“Considering MREIT’s strong performance to date, as well as our improved outlook on office demand and the infusions of additional assets, we are confident of our ability to meet, if not surpass, our dividend projection for the year as indicated in our REIT plan,” Tan said.

MREIT earlier announced its plan to double its portfolio size by 2024 and to reach one million square meters in floor size by 2030.

By next year alone, around 100,000 square meters of prime office assets will be injected, into MREIT.

More assets will be injected, particularly from Uptown Bonifacio in BGC, aside from the assets coming from Eastwood City, McKinley Hill, and Iloilo Business Park.

Among the business districts in Metro Manila, BGC still commands the highest rental rates among major business districts in the country, according to the report released by Leechiu Properties in June.