MREIT to unveil new asset infusions

Megaworld-sponsored MREIT Inc., the best-performing 2021 real estate investment trust (REIT) stock market debutant, is set to unveil fresh asset infusions from its parent firm that will be larger than originally envisioned by the group, according to a report by Philippine Daily Inquirer.

Kevin Tan, CEO of MREIT and Megaworld’s parent conglomerate Alliance Global Group Inc., hinted about this in a Facebook post last week. “I will be announcing in the next two weeks our big plans for 2022, including multiple property infusions across our major [central business district] townships,” he said.  

This was as the second-generation tycoon took heart from the 22.4-percent share price appreciation of MREIT in 2021, which made this initial public offering (IPO) the second best performing in the market and the best performing among all the REITs that have gone public last year.  

From its IPO price of P16.10 in October last year, MREIT closed on Friday at P21.80 per share, representing a 35.4-percent gain for investors.  

On its “big” plans, we heard that MREIT is looking to surpass its target for 2022 in terms of injection of assets.  

It had been earlier signaled that 100,000 square meters of additional leasable space would bulk up MREIT’s portfolio, of which 45,000 square meters will be injected in the first semester and 50,000 square meters in the second semester.  

The numbers may now change as Megaworld is looking to infuse some of its built-to-suit assets, which house high quality tenants and “superior” lease tenure. Occupants of these assets include some of the largest financial, health-care, technology and consulting firms.  

The group is also looking to throw in two more of its mature townships into the mix.  

For those who have held on to the stock from its debut, this bodes well for dividend yield.