MREIT on track to implement P20 billion asset acquisition plan

Iris Gonzales - The Philippine Star

MANILA, Philippines — Megaworld’s investment unit MREIT Inc. said it is on track to implementing its P20-billion acquisition plan for 2022 as it strengthens its portfolio to become one of the biggest real estate investment trusts (REITs) in the country.

As part of the plan, the company is already in discussion with sponsor Megaworld for the infusion of an additional P15 billion worth of commercial assets.

MREIT president and CEO Kevin Tan said the additional infusion would include 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,” Tan said in his message during the company’s annual stockholders’ meeting,

This follows the announcement last month of MREIT’s injection of P5.3 billion worth of assets via a property-for-share swap with the sponsor.

Tan reiterated MREIT’s commitment to maximize shareholder value by increasing revenue generation from its existing portfolio, improving operational efficiency, and accelerating its acquisition plans.

“In line with our vision, we prepared a roadmap that calls for the expansion of MREIT’s property portfolio to one 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,” Tan said.

MREIT started its expansion drive shortly after it listed last October 2021, when the company acquired four properties before year-end for a total consideration of P9.1 billion. As a result of this acquisition, the company is now looking at declaring dividends equivalent to P1 per share in 2022, which is six percent higher than originally contemplated in the REIT plan.

MREIT has a goal to expand its portfolio to one million square meters before the end of the decade.

To achieve that, the company has a target to reach a gross leasable area of 500,000 sqm earlier by the end of 2023 and achieve an annual total shareholder return of at least 10 percent via organic growth and new acquisitions.


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