MREIT, INC. said it is pushing through with its plan to expand into the retail segment as part of its next growth phase, marking a shift from its current focus on office assets.
In a statement on Thursday, the real estate investment trust of Megaworld Corp. said it is moving to its “Wave 5” strategy following the integration of its latest acquisitions.
“With Wave 4 now integrated, MREIT is turning to Wave 5, which is expected to mark the company’s diversification into retail by infusing mall assets in the second half of the year,” the company said.
The planned move remains subject to due diligence, valuation, and regulatory approvals.
“Subject to due diligence, valuation, and regulatory approvals, Wave 5 will bring MREIT materially closer to its goal of one million square meters of GLA (gross leasable area) by 2027,” it added.
The shift comes as the company reported stronger first-quarter performance, with distributable income rising 34% year on year to P1.25 billion, while revenues grew 29% to P1.72 billion. Net operating income (NOI) margin improved to 81.6% from 80.3% a year earlier.
MREIT attributed the gains to the full impact of its Wave 4 acquisition, a P16.2-billion property-for-share swap that added nine Grade A office buildings in McKinley Hill and expanded its gross leasable area by about 34% to around 647,000 square meters.
“Our first quarter results show Wave 4 working exactly as intended: accretive from day one, and at a scale that meaningfully lifts both our earnings base and margin profile,” said Jose Arnulfo C. Batac, president and chief executive officer of MREIT.
For 2025, MREIT posted total revenues of P5.58 billion and net income of P4.40 billion, according to its financial statements.
MREIT, which was incorporated in 2020 as a real estate investment trust under Republic Act No. 9856, is a subsidiary of Megaworld, which owns a 54% stake in the company. Its portfolio consists of office assets located in Megaworld townships such as McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District.
The company said its expansion pipeline is supported by Megaworld’s “extensive pipeline of stabilized, income-generating properties” and the broader portfolio of Alliance Global Group, its ultimate parent, providing a platform for further growth.
On Thursday, MREIT shares closed at P13.92, down eight centavos or 0.57%. — Alexandria Grace C. Magno
