MREIT Inc., the real estate investment trust company of Megaworld Corp., said Thursday it registered a distributable income of P2.8 billion in 2023, up 13 percent from P2.5 billion recorded in 2022.
Revenues also grew by 14 percent year-on-year to P4.2 billion, MREIT said in a disclosure to the stock exchange.
MREIT attributed the company’s strong performance to the full contribution of the additional four office towers and steady rental escalations.
The company ended the year with an occupancy rate of 96 percent, higher than the previous year’s level and above the Metro Manila office industry’s average occupancy rate of around 81 percent to 82 percent, based on figures from property consultants.
“MREIT’s success in 2023 reflects the quality of our assets and our strong tenant relationships. Our approach to focusing on top-tier properties within Megaworld townships was crucial to our unparalleled success, allowing us to maintain elevated occupancy rates and sustain our growth momentum through the year,” said MREIT president and chief executive Kevin Tan.
“As we look ahead, the focus on growth and quality will continue to be the pillars of our company. We are actively working on expanding our portfolio through the strategic asset acquisition announced last year, allowing MREIT to remain at the forefront of the industry in delivering sustained value to our stakeholders,” Tan said.
MREIT’s portfolio covers 18 office properties in four Megaworld premier townships.
MREIT announced plans to acquire seven office buildings from Megaworld with a total leasable space of 150,500 square meters. These office assets, located in Iloilo, Taguig and Davao, generated P1.2 billion in rental income in 2022.
Once completed, MREIT’s portfolio will expand to around 475,500 sq. m., bringing the REIT company closer to its target of 500,000 sq. m. of assets under management by the end of 2024.