MREIT Inc., the real estate investment trust of Megaworld Corp., more than doubled its distributable income in the third quarter, supported by property acquisitions that had boosted its gross leasable area (GLA).
In a disclosure on Monday, MREIT reported distributable income of P1.93 billion in the July-to-September period, up 106 percent from a year earlier. Revenues rose 90 percent to P2.71 billion.
The third-quarter results benefited from more than P43 billion in asset infusions completed through Waves 4 and 5, expanding the company’s GLA from 482,000 square meters to approximately 951,000 sqm. Wave 4 was completed in the first quarter, while assets acquired under Wave 5 began contributing income on July 1.
For the first nine months, distributable income rose 58 percent to P4.42 billion, while revenues grew 48 percent to P6.13 billion. Portfolio occupancy remained above 90 percent, supporting recurring rental income as newly infused properties contributed to earnings.
Wave 5 also expanded MREIT’s exposure to retail through five lifestyle malls: Festive Walk Mall, Lucky Chinatown Mall, Venice Grand Canal Mall, Eastwood Mall and Southwoods Mall.
Following the expansion, office properties accounted for approximately 77 percent of its GLA, while retail represented 20 percent and hotels made up the remaining three percent across nine Megaworld townships.
MREIT declared a third-quarter cash dividend of P0.2762 per share, up 10 percent from P0.25048 a year earlier and up 5 percent from P0.263 per share in the second quarter.
The dividend is payable on Nov. 20 to shareholders on record as of Nov. 10. Dividends attributable to the first nine months of the year reached P0.80215 per share.
The latest dividend represents a payout ratio of 91 percent and an annualized yield of 8.1 percent based on the company’s closing share price on Oct. 22.
“We committed to making each asset infusion translate into meaningful growth in dividends per share, and Waves 4 and 5 delivered on that commitment,” MREIT President and CEO Jose Arnulfo Batac said.
The company is evaluating selected assets in Megaworld’s Uptown Bonifacio township for a potential Wave 6 infusion. The assets, transaction terms and timing have yet to be finalized, with any proposed transaction subject to due diligence, valuation and the necessary corporate and regulatory approvals.
Shares of MREIT on Monday dropped P0.02, or 0.15 percent, to close at P13.56 each.