MREIT to complete acquisitions in Q1

MANILA, Philippines — MREIT Inc., the real estate investment trust (REIT) of tycoon Andrew Tan, is on track to completing its planned acquisitions.

Last April, MREIT announced the acquisition of an additional four prime properties worth P5.3 billion in two of Megaworld Corp.’s townships. The acquisition is still subject to the approval of the Securities and Exchange Commission (SEC).

The properties are located at the Iloilo Business Park in Mandurriao, Iloilo, and McKinley West in Taguig City.

MREIT president and CEO Kevin Tan said the company aims to complete the acquisitions within the quarter.

“Once complete, income from these assets will be recognized retroactively beginning January 1 of this year. The acquisition will increase MREIT’s property value by nine percent to P64.5 billion and will provide added growth in line with our promise to deliver sustainable value to our shareholders,” Tan said.

This developed as MREIT declared dividends of P0.2428 per share to its shareholders based on its distributable income in the fourth quarter of 2022. The cash dividends will be payable on Feb. 15, 2023 to stockholders on record as of Jan. 24.

MREIT’s total dividends for the year reached P0.9770 per share, bringing the company’s dividend yield to 7.1 percent as of MREIT’s closing share price of P13.70 per share on Jan. 6.

MREIT said it would continue to declare quarterly dividends to its shareholders.

“We remain committed to delivering competitive returns to our shareholders through a combination of organic growth and acquisitions,” Tan said.

The dividends, however, do not include additional income arising from the announced property-for-share swap transaction.

Once complete, the acquisition will expand MREIT’s portfolio by 16 percent to 325,000 square meters covering 18 office properties in four Megaworld premier townships: 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.

MREIT made its debut at  the Philippine Stock Exchange in October 2021.

A year after listing, MREIT’s portfolio has grown by 25 percent to 280,000 sqm and its property value by 20 percent to P59.3 billion.