MREIT Inc., the real estate investment trust company of billionaire Andrew Tan, saw a profit spike in the first nine months of the year following the injection of office assets from sponsor, Megaworld Corp.
Net income from January to September jumped more than 150 percent to about P2 billion while revenues soared 189 percent to P2.71 billion, based on the company’s latest financial statement.
MREIT listed on the Philippine Stock Exchange in October 2021. Since then, its portfolio has expanded by 25 percent to 280,000 square meters with an estimated value of P59.3 billion.
“Our offices remain steadfast with above-industry occupancy rates and improving revenues even as we navigate through a challenging environment, proving once again the quality of our portfolio and tenants,” MREIT president and CEO Kevin Tan said in a statement.
“We work double time to continue our promise of delivering consistent and attractive returns to our shareholders,” he added.
MREIT recorded an average occupancy rate of 96 percent during the nine-month period.
Further asset infusions are also being planned.
Last April, MREIT announced the acquisition of an additional four properties worth P5.3 billion. This will increase the size of its portfolio by 16 percent to 324,800 square meters.
Subject to SEC clearance
The acquisition is still subject to the approval of the Securities and Exchange Commission (SEC).These properties are located in two of Megaworld’s most prime township developments to date: Iloilo Business Park in Mandurriao, Iloilo and McKinley West in Taguig City.
MREIT will then own 18 office properties in four Megaworld premier townships. These are: 1800 Eastwood Avenue, 1880 Eastwood Avenue and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley and World Finance Plaza in McKinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.
Meanwhile, MREIT’s board approved the declaration of dividends amounting to P0.24 per share for the third quarter of 2022. Total dividends for the first nine months of the year stood at P0.73 per share.
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