Stock Commentary

MREIT Q1 net income up 14% q/q on help from fresh acquisitions

Merkado Barkada
MREIT Q1 net income up 14% q/q on help from fresh acquisitions

MREIT [MREIT 17.52 0.11%] [link], a Megaworld [MEG 2.90 3.94%] subsidiary, disclosed P687 million in net income for Q1/22, up 14% from the P603 million it made in Q4/21.

MREIT attributes this profit growth to the contributions from the properties it acquired from MEG back in December.

The company said that it continues to execute on its plan to grow the dividend by organic (rent escalation) and inorganic (acquisition) means. MREIT noted that its occupancy rate has improved to 96%.  


They’re growing and growth is good.

I think MREIT investors can be satisfied with the fact that they’ve gotten more than they’ve bargained for, which is a fancy way of saying that they’ve both made around 9% on the stock since IPO, and that MREIT has delivered a dividend that’s been higher than what was advertised during the IPO offer period.

What will the future hold?

Well, on the plus side, the owner (Andrew Tan) appears very aggressive to be big for big’s sake, and the management team (Kevin Tan and company) seem engaged and capable of delivering on the owner’s vision to be the biggest.

Plus, maybe the stock (and the REIT sector as a whole) will experience something of a bounce off the beating that REITs have received over the past month.

Then again, maybe the continued prospect (and eventual reality) of rising interest rates, plus the on-going “headwinds” to the economy caused by high commodity prices, could erode demand for REIT shares and chip away at the organic growth prospects of commercial REITs like MREIT. Time will tell.



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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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