MREIT earnings up by 6.2% in Q1

MANILA, Philippines — Andrew Tan-led MREIT Inc. reported a net income of P730.4 million in the first quarter of the year, up by 6.2 percent from the P687 million recorded a year ago.

It reported a distributable income of P713 million during the period, 12 percent higher than a year ago.

In a disclosure, MREIT attributed the growth to the successful acquisition and consolidation of P5.3 billion worth of assets which began contributing to MREIT’s income starting Jan. 1, 2023.

The new assets increased MREIT’s gross leasable area by 16 percent to 324,700 square meters.  These include four prime, Grade A and PEZA-accredited office properties in McKinley West and Iloilo Business Park.

MREIT president and CEO Kevin Tan said this solidifies the company’s position as the sole REIT in the market with a noteworthy presence in Fort Bonifacio, Taguig City.

“We have achieved another milestone for MREIT as we finally closed our promised acquisition. As we move forward, we remain focused on our core strategies of acquiring high-quality assets and delivering sustainable income to our investors, as are now working for the next stage of growth for MREIT,” he said.

MREIT revenues grew by 15 percent to P1 billion.

Against a backdrop of rosy first quarter results, MREIT declared dividends of P0.2476 per share to its shareholders based on its distributable income, payable on June 19, 2023 to shareholders on record as of May 29, 2023.

This brings MREIT’s dividend yield to 6.8 percent as of the closing share price of P14.66 per share on May 11, 2023.

MREIT has a 95 percent average occupancy rate, significantly higher than the office industry’s average occupancy rate of 80 percent to 81 percent.

Tan said the office industry is resilient and remains an important growth driver of the economy.

“We believe the remaining challenges are only temporary and we look to be on the forefront of oncoming demand, especially from the growing BPO industry,” Tan said.

Moving forward, MREIT will continue to actively explore new opportunities to acquire assets in strategic locations that have attractive long-term growth prospects.

The company is committed to double its portfolio to 500,000 sqm by 2024.