Fresh asset swaps hike MREIT income by 58 percent

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October 27, 2026 | 12:00am

MANILA, Philippines — The real estate investment trust (REIT) of Megaworld Corp. raised its distributable income by more than half in the nine months to September following the infusion of over P43 billion in assets.

Based on its financial report, MREIT Inc.’s distributable income went up by 58 percent to P4.42 billion, as revenue grew by 48 percent to P6.13 billion.

In the third quarter alone, MREIT doubled its distributable income to P1.93 billion, propelled by a 90-percent hike in revenue to P2.71 billion.

MREIT is reaping the gains of recent property-for-share swaps. It completed this year the fourth and fifth waves of property addition, amounting to P43 billion.

The transactions expanded MREIT’s gross leasable area (GLA) to 951,000 square meters from 482,000 sqm. Further, the company’s occupancy rate stands at 90 percent, generating recurring rental income in spite of a challenging property landscape.

MREIT’s 90-percent occupancy is beating Metro Manila’s average levels, indicating the strength of the company’s township-based assets sponsored by Megaworld.

MREIT added variety to its portfolio with its latest property infusion, made up of five malls with 160,200 sqm in GLA: Eastwood Mall, Festive Walk Mall, Lucky Chinatown Mall, Southwoods Mall and Venice Grand Canal Mall.

The transaction also brought in six office spaces with 117,200 sqm in GLA, escalating exposure to the established industry of corporate leasing.

MREIT president and CEO Arnulfo Batac said shareholders would benefit from the fifth wave of property infusion through their dividends. MREIT increased its dividend payout by 10 percent to P0.2762 per share in the third quarter, from P0.2505 a year ago.

“We are committed to making each asset infusion translate into meaningful growth in dividends per share, and Waves 4 and 5 delivered on that commitment. Following Wave 4’s dividend uplift earlier this year, shareholders are now receiving another increase,” Batac said.

MREIT is now looking into another round of property-for-share swap, and it may include some of Megaworld’s crown jewel in Uptown Bonifacio.

To date, MREIT has widened its portfolio to 77 percent office, 20 percent retail and three percent hotels, from above 95 percent office formerly.