MREIT Inc. is receiving another asset infusion from mother company, Megaworld Corp.
This follows after Megaworld sold P500 million-worth of shares in MREIT to the Social Security System (SSS) last month at a discount to the latter’s initial public offering sale price of P16.10 apiece.
MREIT said it will acquire six office properties worth P13.15 billion from Megaworld, which upon regulatory approval will increase its portfolio by 157,000 square meters (sq.m.), or about 48 percent to 482,000 sq.m.
The acquisition includes Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District, MREIT said.
MREIT said the properties will be exchanged for 926.16 million MREIT secondary shares at valuation of P14.20 per share. The asset-for-share swap valuation, is a 10 percent premium over MREIT’s closing price of P12.94 per share on May 10, 2024, it said.
“The purchase price of the properties is based on appraisal reports and validated by a third-party fairness opinion, which were presented to and approved by the company’s RPT (related party transaction) Committee and Board of Directors,” MREIT said.
“The acquisition of these properties moves us closer to our target portfolio of 500,000 sq.m. by the end of 2024. This transaction not only supports the sustained growth of MREIT but is also dividend accretive to our shareholders. We are immediately working on the next set of acquisitions to reach our target assets under management before the year concludes,” said Kevin Tan, MREIT chief executive officer.
MREIT said it declared P687.77 million-worth of cash dividends, based on its distributable income in the first quarter of the year. The company has yet to release its quarterly report.
MREIT said the dividend amounts to P0.2460 per share that will be payable to shareholders as of May 24 on record, and will be paid on June 14.
“Annualized, this brings MREIT’s dividend yield to 7.6 percent, as of the closing share price of P12.94 per share on May 10,” it said.
To date, MREIT’s portfolio covers 18 office properties located in Megaworld’s various mixed-use developments in Luzon and Visayas.
