MREIT, the real estate investment trust unit of Megaworld Corp., delivered an all-time high first-quarter performance, with distributable income surging 34 percent to P1.25 billion as its expanded asset base amplified earnings and margins.
Revenue increased 29 percent to P1.72 billion, but faster income growth underscored stronger operating leverage following the integration of newly acquired assets. Net operating income margin improved by 130 basis points to 81.6 percent.
What powered growth
The record results were driven by the full-quarter impact of Wave 4, a P16.2 billion property-for-share swap that added nine Grade A office buildings in McKinley Hill. The deal expanded gross leasable area by 34 percent to around 647,000 square meters.
Income contribution was backdated to January 1, allowing the acquisition to lift earnings from the start of the year.
“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,” said Jose Arnulfo C. Batac, president and CEO of MREIT, Inc.
“The 130-basis-point expansion in NOI margin reflects the operating leverage of a larger, higher-quality platform. This is the disciplined, accretive growth we committed to our shareholders, and it sets a strong foundation for the rest of the year.”
Portfolio momentum
MREIT’s assets are located across key Megaworld townships including McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District, supporting stable occupancy and recurring income.
The larger portfolio is expected to sustain both earnings growth and margin expansion.
What’s next
With Wave 4 completed, MREIT is preparing for Wave 5, which could mark its entry into retail through mall asset infusions in the second half, subject to approvals.
This next phase is expected to diversify income streams and bring MREIT closer to its goal of one million square meters of gross leasable area by 2027.
—Edited by Miguel R. Camus
