On a recent episode of Dragonfi’s The Dividend Investor Podcast, host Aaron Lelay sat down with Andy Dela Cruz, a CFA charter holder and Head of Investor Relations for MREIT, to discuss why investing in a REIT like MREIT might be a smarter move than traditional property ownership.

The “Landlord Without the Headache”
For many Filipinos, owning a condo in a prime area like Bonifacio Global City (BGC) is a dream. However, the reality of being a landlord often includes:

Maintenance costs and repairs.
Dealing with troublesome tenants.
The paperwork and permits required by building admin.

As Andy explains, when you buy into MREIT, you are essentially buying a share of a massive portfolio of prime office buildings. You collect the rent (distributed as dividends) without ever having to fix a leaky faucet or chase down a tenant for payment.

By the Numbers: 8% vs. 5%
The financial comparison is where the REIT strategy truly shines.
Condo Yields: A typical studio unit in BGC might cost 8 to 10 million pesos, with rental yields often hovering around 5% to 6%
MREIT Yields: At current prices, MREIT offers a dividend yield close to 8%.

Beyond the higher yield, REITs offer liquidity and scalability. You can sell your REIT shares in minutes if you need cash, whereas selling a physical property can take months. Furthermore, you can start investing in a REIT with just a few thousand pesos, unlike the millions required for a down payment on a condo.

The Power of the “Township” Model
What makes MREIT’s assets “prime”? It comes down to Mega World’s unique township model. Unlike standalone buildings, MREIT’s 24 office properties are situated in integrated ecosystems like McKinley Hill and Eastwood City.

These are “Live-Work-Play” environments where everything—offices, homes, malls, and hotels—is within a 15-minute walk. This ecosystem makes the properties highly attractive to multinational companies and ensures high tenant “stickiness”.

Addressing the “BPO Risk” and AI
A common concern for investors is MREIT’s exposure to the BPO sector, especially with the rise of AI and automation. Andy clarifies that while 70-80% of tenants are BPOs, only about 20% are traditional voice-based call centers.

The majority are Global Capability Centers (GCCs)—internal units of major multinational firms like JP Morgan. These centers handle high-value, knowledge-based jobs that are deeply integrated into the parent company’s global operations, making them much more resilient to automation than simple customer service roles.

Is the Office Dead?
Despite the trend toward hybrid work and rising commute costs, MREIT remains bullish on physical office spaces. Andy notes that major global CEOs are mandating a return to the office to preserve company culture and productivity. From a financial standpoint, office tenants are bound by long-term contracts; if they leave early, they forfeit significant deposits, giving the REIT a financial cushion to find new occupants.

The Bottom Line
With a plan to nearly double its leasable area by 2027 and the addition of malls into its portfolio, MREIT is positioning itself for significant growth. For the dividend investor, the choice between the “headache” of a physical condo and the “hands-off” 8% yield of a REIT is becoming clearer than ever.

Check out the full episode of the Dividend Investor Podcast. Watch the full video here: MREIT: Is 8% Dividend Yield Better Than Owning a BGC Condo?