MREIT Inc., the real estate investment trust of Megaworld Corp., posted a 34-percent surge in first-quarter net income to P1.25 billion as newly acquired assets and improved operating efficiencies boosted profitability.
In a disclosure on Thursday, the company said the profit growth outpaced a 29-percent increase in revenues to P1.72 billion, thanks to stronger margins and a larger asset base.
“This is the disciplined, accretive growth we committed to our shareholders, and it sets a strong foundation for the rest of the year,” MREIT President and CEO Jose Arnulfo Batac said.
The et operating income margin expanded to 81.6 percent from 80.3 percent a year earlier, reflecting tighter cost controls and improved performance across its office assets.
The strong earnings performance was largely driven by the completion of its “Wave 4” acquisition, a P16.2-billion property-for-share swap approved by the Securities and Exchange Commission in March.
The transaction added nine Grade A office buildings, expanding MREIT’s gross leasable area by about 34 percent to roughly 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,” Batac said.
The company noted that income contribution from the new assets was recognized starting January, allowing the acquisition to immediately boost first-quarter earnings.
With the latest infusion now integrated, MREIT is preparing for its next growth phase as a planned “Wave 5” transaction, expected in the second half, may introduce retail assets into its portfolio.
MREIT’s assets are located within key townships such as McKinley Hill, Eastwood City, Iloilo Business Park, and Davao Park District, while its expansion pipeline is supported by the broader portfolio of parent Alliance Global Group Inc.
The company’s shares dropped P0.08, or 0.57 percent, to close at P13.92 each on Thursday. NAZYLEN JOY MABANGLO
