Megaworld, Ayala REITs post double-digit growth in Q1 income

MANILA  -Billionaire Andrew Tan’s MREIT Inc. and Ayala Group’s AREIT Inc. recorded higher earnings during the first quarter of 2023 amid the resilient demand for commercial and office rentals.

The two companies are among the country’s largest real estate investment trusts (REIT), which are dividends-focused property holding companies.

Tan’s MREIT announced a 12-percent increase in distributable income to P713 million for the first quarter of the year. This was fueled by the acquisition of P5.3 billion worth of Grade A offices from sponsor, Megaworld Corp.

Revenues also expanded by 15 percent to P1 billion during the quarter.

“We have achieved another milestone for MREIT as we finally closed our promised acquisition. As we move forward, we remain focused on our core strategies of acquiring high-quality assets and delivering sustainable income to our investors, as we are now working for the next stage of growth for MREIT,” Kevin L. Tan, MREIT president and CEO, said in a statement on Friday.

MREIT declared dividends of P0.2476 per share, payable on June 19 to shareholders on record as of May 29 this year.

The company noted that its properties had an above-industry occupancy of 95 percent at the end of March this year. Its tenants were mostly business process outsourcing companies and traditional offices.

“The office industry is resilient and remains an important growth story for our nation. We believe the remaining challenges are only temporary and we look to be on the forefront of oncoming demand, especially from the growing BPO industry,” Tan said.

In a separate filing, AREIT said its net income in the first three months of 2023 jumped 27 percent to P1.01 billion after removing the net fair value change in investment properties.

AREIT also closed the period with an above-average occupancy rate of 97 percent.

The company said earnings were lifted by the acquisition of Ayala Land assets in Cebu the previous year.

AREIT shareholders recently approved the P22.5 billion acquisition of prized malls and offices from Ayala Land.

These include shopping malls Glorietta 1 and 2 in its Ayala Center complex in Makati City. Ayala Land will also infuse BPO buildings in Ayala Center; the One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue, Makati and Edsa; and the MarQuee mall in Angeles, Pampanga.

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