MREIT Inc. expects its pro forma market capitalization to exceed P90 billion following the completion of a fifth asset infusion as the real estate investment trust of Megaworld Corp. continues to expand its portfolio as part of efforts toward inclusion in the benchmark Philippine Stock Exchange index (PSEi).
MREIT investor relations head Jeffrey Lucero said the market capitalization would be “well over P90 billion” upon completion of the Wave 5 transaction, with increases to come future asset infusions.
PSEi inclusion is a target for MREIT as its market capitalization and size grow, Lucero said during the PSE Star briefing on Monday.
“We can really harp on the story of being a [distribution per unit]-accretive phase of acquisitions, so high dividend yield plus growth,” Lucero said.
He added that inclusion in the PSEi could potentially generate passive fund inflows and also possibly pave the way for inclusion in other indices, such as MSCI and FTSE.
Wave 5, described by Lucero as MREIT’s biggest acquisition so far, is expected to be finalized later this year, subject to regulatory approval. He said the company was hoping for completion in the third quarter.
MREIT, he added, is shifting its focus toward asset infusions that provide meaningful returns to shareholders. Future acquisitions will have to be materially accretive to distributions per unit (DPU), with each wave targeted to deliver about 3-percent to 5-percent DPU accretion.
Wave 4 delivered 5-percent DPU accretion while Wave 5 is expected to contribute at least 3 percent. Lucero said the two acquisitions would result in more than 8-percent growth in dividends per share for the year.
Looking ahead, Lucero said the company’s longer-term target was to complete one acquisition wave each year, with one planned for 2027 and another for 2028, although there is room to exceed that pace.
Lucero also said that MREIT expected to generate growth by improving the performance of assets already in its portfolio. Margins on properties acquired through Waves 1 to 4 improved by at least 5 percentage points, with efficiency gains typically achieved within a year.
MREIT shares on Monday slipped P0.18, or 1.32 percent, to close at P13.44 each.
