MREIT Portfolio Reaches P122 Billion with Major Asset Infusion

MANILA, Philippines — The real estate investment trust (REIT) of Megaworld Corp. has secured regulatory approval for its largest asset infusion to date, elevating its property portfolio to P122 billion. In a disclosure to the Philippine Stock Exchange, MREIT Inc. said it has received approval from the Securities and Exchange Commission (SEC) to proceed with its fifth round of property infusion, its largest to date. The latest property-for-share swap adds P27 billion in assets to MREIT, boosting the company’s gross leasable area (GLA) by 303,900 square meters. The value of MREIT’s assets under management has now gone up to P122 billion, covering 950,000 sqm in GLA. Prior to the recent transaction, MREIT received a fourth wave of property infusion, amounting to P16.2 billion. MREIT president and CEO Jose Arnulfo Batac said investors would immediately feel the benefit of the added assets. Investors will see their dividend-per-share go up in the third quarter. “With SEC approval secured within the third quarter and the assets contributing income effective July 1, shareholders stand to benefit from the transaction’s material dividend-per-share accretion from the outset,” Batac said. To sustain growth traction, MREIT is working on its next round of property-for-share swap and will take in some of Megaworld’s prized assets in Uptown Bonifacio. Megaworld assets being considered for the next property infusion include office assets with high tenancy and retail establishments with consistent traffic. MREIT aims to expand its GLA to above one million sqm by 2027. MREIT’s growth pipeline is supported by the project buildup of sponsor Megaworld, allowing it to prop up its portfolio with commercial and residential units. The fifth property infusion covers five malls with 160,200 sqm in GLA: Eastwood Mall, Festive Walk Mall, Lucky Chinatown Mall, Southwoods Mall and Venice Grand Canal Mall. Likewise, it adds six office spaces with 117,200 sqm in GLA. MREIT also welcomed the 737-room Holiday Inn Express Manila Newport City in line with the push to diversify its portfolio. To date, MREIT has succeeded in diversifying its assets under management to 77 percent office, 20 percent retail and three percent hotels, from more than 95 percent office originally.