In part 2 of The Dividend Investor Podcast by DragonFi, Andy from MREIT talks about the company’s ambitious growth trajectory and what it means for long-term investors.
Here are the key takeaways from the discussion on how MREIT plans to double its assets and secure your dividend future:
1. The Roadmap to 1 Million Square Meters
MREIT has set a bold target: reaching 1 million square meters of Gross Leasable Area (GLA) by 2027.
Current Progress: Following the approval of “Wave 4” acquisitions, the portfolio has grown to approximately 650,000 square meters.
Next Steps: The company plans to hit 750,000 square meters by the end of 2026 by infusing mall assets and more office spaces.
The Long Game: By 2027, the mix is expected to diversify further into hotels and retail to maintain stability and growth.
2. Dividend Sustainability vs. Growth
One of the most frequent questions for REIT investors is whether high payouts are sustainable. Andy addressed MREIT’s current Adjusted Funds From Operations (AFFO) payout ratio, which has been near 100%.
The Strategy: While 100% payout isn’t the long-term plan, MREIT is using current income to protect investors while infusing new, accretive properties to lower the ratio naturally without cutting dividends.
Commitment: MREIT prides itself on never having declared lower dividends, aiming for “sustained dividend stability” even as they reinvest in older assets.
3. Resilience in the Office Sector
Despite a general downturn in the Metro Manila office market (averaging 81–82% occupancy), MREIT maintains a stellar 92% occupancy rate.
The “Secret Sauce”: Being situated in established townships like McKinley Hill and Uptown Bonifacio creates a “sticky” environment for high-quality tenants.
Tenant Flexibility: As the largest office landlord in the country, MREIT offers tenants the flexibility to move between buildings within their portfolio, a perk smaller landlords can’t match.
4. Addressing Investor Risks
Andy touched on two major concerns: interest rates and geopolitical risks.
Fixed Interest Rates: MREIT’s loans were repriced in early 2025 and are fixed for five years, meaning rising interest rates won’t impact their current debt costs.
The BPO Bill: Regarding the US “Keep Call Centers in America Act,” Andy noted that only about 4–5% of MREIT’s portfolio is US-facing voice BPOs, making the risk minimal.
5. Why MREIT Stands Out
When asked why investors should choose MREIT over other options, the answer was simple: Yield, Growth, and Sponsor Strength.
8% Yield: Investors can currently lock in a high yield that has the potential to grow as the company expands.
Sponsor Alignment: With Megaworld actively pushing MREIT to be the largest REIT in Southeast Asia, the alignment between the developer and the REIT remains a core strength.
Final Thought: The Long Game
Andy’s advice to his younger self—and to investors—is to focus on consistency over quick gains. “Buying MREIT now at an 8% yield is like catching a stock at its lowest point in price history,” he noted. “It’s a once-in-a-lifetime opportunity”.
For more deep dives into dividend investing, check out the full video here:
philreitinvestor.com 