MREIT, Inc., the real estate investment trust of property giant Megaworld, is accelerating its growth trajectory with a new target of reaching 1 million square meters (sqm) of gross leasable area (GLA) by 2027, three years ahead of its original schedule. This ambitious plan follows strong financial performance and a proposal to increase capital and issue new shares.
The move comes as MREIT sustained impressive earnings momentum, with second-quarter distributable income soaring 25% year-on-year to P932 million and revenues climbing 32% to P1.36 billion. For the first half of 2025, revenues reached P2.70 billion, a 28% increase, while distributable income rose 26% to P1.86 billion.
Capital Increase and Share Issuance to Drive Expansion
To fuel this accelerated growth, MREIT’s Board has endorsed a significant capital increase and the issuance of up to 1.36 billion primary common shares. These proposals, which will be voted on during the Annual Stockholders’ Meeting on September 29, 2025, include:
- Increasing the Authorized Capital Stock from P5 billion to P8 billion.
- Issuing and listing up to 1.36 billion primary common shares in exchange for cash and/or properties.
Once approved, these measures are expected to pave the way for a substantial infusion of prime, income-generating assets from Megaworld’s vast portfolio. This will significantly enhance MREIT’s portfolio scale and earnings capacity, cementing its position as a leading office REIT in the country.
Leadership Confidence and Strategic Vision
MREIT Chairman Kevin L. Tan highlighted the strategic vision behind the acceleration. “When we envisioned MREIT, our goal was to build a REIT that would grow faster and deliver more value than the market expected,” Tan said. “Accelerating our 1 million sqm GLA target to 2027 aligns with that vision, especially amid a more accommodating global rate environment. Soon, Megaworld will have close to 1.7 million sqm of office GLA and nearly 700,000 sqm of mall GLA, giving MREIT unparalleled access to a deep pipeline of prime assets.”
MREIT President and CEO Jose Arnulfo C. Batac echoed this confidence, stating, “This strategic initiative positions MREIT to capture growth opportunities at a faster pace, reinforcing our commitment to deliver sustainable value to our shareholders. We will achieve our 1-million square meters GLA target ahead of schedule.”
Batac also emphasized the strength of MREIT’s current portfolio, which comprises 24 prime office properties in five of Megaworld’s premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District. “Our portfolio’s quality, scale, and income resilience give us the confidence to accelerate our plans,” he added. “We are well-positioned to capitalize on the robust demand for Grade A office spaces and further diversify into complementary asset classes.”
The strong performance in the first half of 2025 was driven by the acquisition of six new office properties in 2024, sustained rental escalations, and resilient occupancy levels. The planned infusion of additional assets is expected to further boost MREIT’s earnings base, dividend-paying capacity, and market presence in the coming years.
