MREIT, Inc. posted stronger first-half earnings as its fourth wave of asset acquisitions boosted income and occupancy, while the actual estate investment trust (REIT) advanced a planned P27-billion portfolio expansion that can further diversify its assets beyond office properties.
The corporate reported a 34% increase in distributable income to P2.49 billion in the primary six months of 2026, driven by the completion of its Wave 4 asset acquisition, improved occupancy, and operating efficiencies.
Revenue for the January-to-June period rose 26% to P3.41 billion from P2.70 billion a 12 months earlier, MREIT said in an announcement on Thursday.
In its quarterly report, MREIT said attributable net income for the second quarter increased 29.4% to P1.25 billion from P965.8 million a 12 months earlier, while revenue grew 24.2% to P1.69 billion from P1.36 billion.
Its net operating income margin improved by 121 basis points to 81%, which the corporate attributed to cost management initiatives and operating leverage across its expanded portfolio despite inflationary pressures and better energy-related costs linked to the Middle East crisis.
“MREIT’s disciplined cost management and transition to 100% renewable electricity supply across its portfolio helped manage exposure to volatility in electricity generation costs while supporting the corporate’s broader sustainability objectives,” it said.
Portfolio occupancy improved to 90% in the primary half from 89% a 12 months earlier.
MREIT also declared a second-quarter money dividend of P0.2630 per share, up 5% from a 12 months earlier, bringing total first-half dividends to P0.5260 per share.
“As promised, we now structure every asset infusion we pursue to deliver material dividend-per-share accretion. The dividends declared in each the primary and second quarters of 2026 reflect that commitment and reveal how Wave 4 is translating portfolio growth into tangible per-share returns for our shareholders,” MREIT President and Chief Executive Officer Jose Arnulfo C. Batac said.
The corporate is advancing its previously announced P27-billion fifth wave of asset acquisitions through a property-for-share swap, subject to regulatory approvals.
The transaction will add about 303,500 square meters (sq.m.) of gross leasable area (GLA), increasing MREIT’s portfolio to greater than 950,000 sq.m. and putting it on course to succeed in 1 million sq.m. ahead of its 2027 goal. It follows the completion of the corporate’s P16.2-billion fourth wave of acquisitions in the primary quarter.
Upon completion, office properties will account for about 77% of MREIT’s GLA, down from greater than 95% currently, while retail assets will comprise about 20% and hotel properties the remaining 3%. The transaction may also expand MREIT’s presence from five to nine Megaworld Corp. townships.
The retail assets to be infused comprise five malls with a combined GLA of 160,200 sq.m.: Festive Walk Mall in Iloilo Business Park, Lucky Chinatown Mall in Binondo, Venice Grand Canal Mall in McKinley Hill, Eastwood Mall in Quezon City, and Southwoods Mall in Biñan, Laguna.
The transaction also includes the 737-room Holiday Inn Express Manila Newport City, with 26,500 sq.m. of GLA, and 6 office properties with a combined GLA of 117,200 sq.m.: Science Hub Tower 2 and Venice Corporate Center in McKinley Hill, Six West Campus in McKinley West, One Paseo in ArcoVia City, Global One in Eastwood City, and Horizon Center in Newport City.
The assets included within the fifth wave of acquisitions have a blended occupancy rate of 91% and a weighted average lease expiry of 5.3 years.
The property-for-share swap will involve Megaworld Corp., Travellers International Hotel Group, Inc., and Southwoods Mall, Inc. at a subscription price of P16.50 per share, similar to an 18.6% premium to MREIT’s 30-day volume-weighted average price.
“The transaction structure reflects MREIT’s disciplined approach to acquisitions, ensuring that portfolio expansion is pursued not merely for scale, but to boost shareholder value through dividend-per-share accretion,” the corporate said.
MREIT shares rose 0.43% to P14.08 apiece on Thursday. — Alexandria Grace C. Magno