MREIT declares larger Q1/22 dividend
The Megaworld [MEG 2.93 0.68%] subsidiary, MREIT [MREIT 17.44 1.69%] [link], declared a dividend of P0.243 per share to shareholders of record on May 10, payable on May 31.
The company’s third quarterly dividend since its IPO in September of last year is 1.3% larger than the previous two dividends.
At MREIT’s current price, this dividend represents an annualized yield of 5.57%, and a yield of 6.04% relative to its IPO price of P16.10/share.
Kevin Tan, MREIT’s CEO, said that MREIT intends to declare P1.00/share in dividends this year, which would translate to a yield of 6.20% relative to MREIT’s IPO price. That goal/projection doesn’t include the impact of “acquisitions scheduled for this year”. Mr. Tan said that MREIT is aiming to deliver a total return of over 10% per year.
MB BOTTOM-LINE
When Mr. Tan says “total return”, he’s talking about the mix of income from dividends and price appreciation of the stock.
In this respect, investors have had nothing to complain about so far with MREIT, as it has delivered a 12.8% total return so far in only two full quarters of operation.
The brash and competitive nature of Andrew Tan, the group’s ultimate owner, all but guarantees that MREIT will remain active in the acquisitions space, and as a nice side-effect, help MEG further monetize its growing inventory of mature commercial properties.
Now let's see if the other commercial REITs that have yet to declare Q1 dividends, like AREIT [AREIT 42.80 2.39%], DDMP [DDMPR 1.54 1.91%], and RL Commercial REIT [RCR 7.34 1.21%], will show a similar dividend growth to what we’ve seen so far from Filinvest REIT [FILRT 7.33 0.54%] and now MREIT.
It has been a rough couple of months for the REIT sector from a stock-price perspective, but it does appear as though the underlying commercial lease business is improving and showing signs of recovery.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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