LISTED MREIT, Inc., the real estate investment trust of Megaworld Corp., is aiming to grow its portfolio to one million square meters (sq.m.) of gross leasable area (GLA) by 2027, betting on rising consumer activity.
In a stock exchange disclosure on Monday, the company said its long-term strategy includes the infusion of mall and retail assets to diversify its portfolio and capture growing consumer demand.
This, it added, complements MREIT’s high-occupancy office assets.
“While the country is experiencing an impressive growth in consumer activities, we want to tap into these opportunities. This will enable us to deliver both growth and diversification, keeping our portfolio resilient and relevant for the years ahead,” MREIT Chairman Kevin L. Tan said.
MREIT’s sponsor, Megaworld, holds one million sq.m. of office GLA and 500,000 sq.m. of retail GLA, which may be infused into MREIT over time.
Last month, MREIT said it was raising its authorized capital stock to P8 billion from P5 billion to prepare for a possible asset infusion from its sponsor.
The company also noted that foot traffic and sales across Megaworld Lifestyle Malls have surpassed pre-pandemic levels, driving strong leasing activity from both global and homegrown brands.
As of end-June, mall occupancy reached a record 93%.
“This favorable environment underpins MREIT’s strategy to bring in more retail assets in the future, ensuring that its portfolio captures both the growth of business process outsourcing and the resurgence of Philippine consumer spending,” MREIT said.
“The company remains focused on expanding its portfolio through accretive acquisitions while maintaining strong dividend payouts to investors,” it added.
Megaworld recently said it is allocating the P2.21 billion raised from its latest block sale of MREIT shares for projects in its Cebu, Palawan, and Bacolod townships.
MREIT reported a 26% increase in its first-half distributable income to P1.86 billion, led by a 28% rise in revenue to P2.7 billion.
At present, MREIT’s portfolio includes 24 prime office properties strategically located in five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.
MREIT shares closed flat at P13.52 apiece on Monday. — Beatriz Marie D. Cruz
