Mreit to Expand Portfolio with Retail Assets

Mreit Inc., the real estate investment trust (REIT) arm of Megaworld Corp., is set to diversify its portfolio, which has been largely focused on residential, office, and mall properties.

“Starting this year, Mreit plans to include retail assets in its portfolio,” announced Mreit President Kevin Tan during the company’s annual stockholders meeting. “This strategic move will give shareholders exposure to the robust performance of the retail sector, enhancing the company’s resilience and growth prospects.”

Tan also mentioned that Mreit is evaluating additional properties within the Megaworld portfolio. “Broadening our portfolio with new investment types will ensure that Mreit maintains a balanced and diversified portfolio, capable of withstanding various market dynamics,” he explained.

Recently, Mreit acquired six office properties, expanding its portfolio by approximately 157,000 square meters—a 48 percent increase. These buildings are located in Megaworld’s townships, including McKinley West, Iloilo Business Park, and Davao Park District.

“Our average occupancy rates are significantly higher than the industry average,” Tan added.

Mreit aims to reach 500,000 square meters of gross usable area by the end of the year, moving closer to its long-term goal of achieving one million square meters of gross leasable area by 2030.

“This acquisition not only enhances our portfolio but also strengthens our market position,” Tan said. “It allows us to offer more high-quality spaces to our tenants and sustain our revenue growth.”

In May, Mreit declared cash dividends of PHP0.246 per share for its shareholders, based on its distributable income in the first quarter. This brings the annualized dividend yield to 7.6 percent, based on the closing share price of PHP12.94 per share on May 10, 2024.