Good news for investors of MREIT – the real estate investment trust of Megaworld Corp. is making a strategic move to fast-track its growth. The company has announced an ambitious plan to achieve a gross leasable area (GLA) of 1 million square meters by 2027, a full three years ahead of its initial schedule.

This accelerated timeline is a testament to MREIT’s commitment to delivering exceptional value to its shareholders. The company’s Chairman, Kevin L. Tan, stated that this decision is a direct result of their vision to grow faster and exceed market expectations.
So, how will they do it? The plan involves a capital raise and the infusion of more prime assets into the company’s portfolio. The Board has already given its nod to increase the authorized capital stock and issue new common shares. The funds from this initiative will be used to further bolster MREIT’s already strong portfolio.

This rapid expansion is made possible by parent Megaworld’s extensive pipeline of high-quality office and mall GLA, giving MREIT unparalleled access to future acquisitions. Megaworld targets 2 million sqm of office GLA and 1 million sqm of retail GLA by 2030. Megaworld Hotels & Resorts, the country’s largest hotel developer, is also set to grow its nationwide portfolio by 50 percent to 9,000 hotel room keys in 5 years.  This strategic advantage ensures that MREIT has a continuous stream of opportunities for growth and asset diversification.

MREIT’s performance in the first half of the year has been impressive, with a 26 percent growth in distributable income. This success is a combination of newly acquired properties, rental escalations, and strong occupancy rates. Currently, MREIT’s portfolio consists of 24 office properties strategically located in key business parks across the country.
This move to accelerate its GLA goal is a clear signal of MREIT’s strong market position and its potential for future value creation.

It’s an exciting time to watch this REIT grow and expand its footprint in the Philippine real estate market. Not to mention its dividend yield of 7% and a stable dividend payout. If they deliver, AREIT and RCR better watch out.