Real estate investment trust (REIT) firms MREIT Inc. and DDMP REIT Inc. said on Tuesday they were keen on further expanding their portfolios to increase shareholders’ value.
MREIT Inc., led by billionaire Andrew Tan, and DDMP REIT, controlled by tycoons Tony Tan Caktiong and Edgar “Injap” Sia II, provided updates on their long-term investment plans to improve recurring income and dividends.
MREIT, sponsored by Tan’s property giant Megaworld Corp., is maintaining its “accelerated growth plan” to expand its gross leasable area (GLA) to 500,000 square meters by the end of 2024 from about 280,000 sqm at the end of September last year.
“As opportunity arises, the company may choose to diversify to other high-growth geographic areas like Cebu, Bacolod, and Pampanga, and other growth areas in the country where the sponsor’s townships are located,” MREIT said in a stock exchange filing detailing its three-year investment strategy.
“Diversification plans include investment in other types of real estate properties, to include industrial, logistics, warehouse, other real property sectors that meet the company’s investment criteria for Grade A, centrally-located, stably occupied, and income producing properties,” the company said.
Last April, MREIT announced the acquisition of four more properties worth P5.3 billion.
This will increase its GLA to 324,800 sqm.
DDMP REIT, backed by DoubleDragon Corp., will also evaluate new acquisitions, which could be in Metro Manila and other urbanized provinces across the country.
“DDMP plans to add only mature real estate properties in its portfolio with stable cash flows. It considers adding future properties that yields higher capitalization, preferably higher than the existing properties,” the company said in a disclosure detailing its investment strategy.
DDMP REIT said it also wants to diversity its tenant mix to include “banking, insurance, and financial services, government agencies, technology, media and service sectors.”
DDMP REIT’s portfolio consists of three operational office buildings with a GLA of over 172,000 square meters. The company also owns the land for the three respective projects unlike other REIT developers, which lease the assets.
“The fund manager will seek strategic acquisitions of quality income-producing commercial properties that fit within the company’s investment strategy that offers sustainable income and long- term capital appreciation,” DDMP REIT said in the filing.
“In executing this strategy, the company will endeavor to acquire properties situated in high-growth areas, whether from the [Double Dragon] Group, or third parties, to cater to economic growth,” it added.
DDMP REIT ended the nine-month period of 2022 with a net income of P1.54 billion, which was higher by 5.82 percent. Total rental income also added 7.4 percent to P1.67 billion.
MREIT’s January to September profit last year jumped over 150 percent to about P2 billion while revenues soared by 189 percent to P2.71 billion, based on the company’s latest financial statement.