REIT firm to hike capital stock by 60% for asset expansion

MREIT Inc., the real estate investment trust (REIT) arm of township developer Megaworld Corp., is seeking to raise its authorized capital stock by 60 percent to %u20B18 billion from %u20B15 billion to allow the issuance of more shares for fresh asset acquisitions.

In a disclosure to the Philippine Stock Exchange, MREIT said its board of directors approved the capital increase alongside a plan to issue up to 1.36 billion primary common shares. The move aims to accelerate the infusion of additional income-generating assets into the company’s portfolio.

The proposal will be put to a vote during the firm’s Annual Stockholders’ Meeting on September 29, 2025. If approved, the capital hike and share issuance are expected to facilitate significant new asset infusions, boosting both the scale and earnings capacity of the REIT.

MREIT has set an ambitious target of reaching one million square meters of gross leasable area (GLA) by 2027—three years earlier than its original schedule. Chairman Kevin L. Tan said the plan reflects the REIT’s strategy to grow faster than market expectations, leveraging Megaworld’s deep pipeline of properties.

“Soon, Megaworld will have close to 1.7 million square meters of office GLA and nearly 700,000 square meters of mall GLA, giving MREIT unparalleled access to prime assets,” Tan said.

MREIT President and CEO Jose Arnulfo C. Batac added that the initiative would allow the company to “capture growth opportunities at a faster pace” while strengthening dividend-paying capacity and reinforcing shareholder value.

Megaworld itself targets to expand its office GLA to two million square meters and retail GLA to one million square meters by 2030, creating a total leasing portfolio of three million square meters. This, in turn, would ensure a steady stream of potential asset infusions for MREIT over the long term.

The REIT’s current portfolio consists of 24 prime office properties located in five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

MREIT reported strong financial results in the first half of 2025, with distributable income rising 26 percent year-on-year to %u20B11.86 billion and revenues increasing 28 percent to %u20B12.70 billion. The gains were attributed to contributions from six newly acquired office properties in 2024, regular rental escalations, and steady occupancy levels.