Megaworld Corp.-sponsored MREIT Inc. plans to double its portfolio in three years as it targets to become the largest REIT in Southeast Asia.
“We want to be the fastest growing REIT. We still have 1.2 million square meters (sq.m.) of office space that we will be injecting into the REIT. In three years time, will double the size of REIT… and will become one of the largest REITs in Southeast Asia,” said Kevin Tan, MREIT president and Megaworld chief strategy officer.
Tan told investors on Wednesday MREIT has 10 of Megaword’s grade A office assets.
Megaworld is initially looking at putting five assets by next year, all office buildings.
This will complement MREIT’s existing portfolio of 224,430.8 sq.m. and further boost the projected growth of returns for MREIT investors.
Tan said as a landlord, Megaworld escalates rent by an average of 5.2 percent every year on its office development, assuring MREIT a continued growth on its topline and bottomline.
At the current MREIT portfolio, projected revenue stream for this year, and the real estate investment trust’s initial public offer price of P16.10 per share, MREIT investors may potentially earn a dividend yield of 5.65 percent.
Tan said the prospective yield is beyond the projected 5.65 percent since occupancy in MREIT’s portfolio is now at 100 percent compared to just 92.3 percent when it filed for an IPO in March.
Tan also said for the next two years, MREIT is set to declare 100 percent of its income as dividend compared to the mandatory 90 percent of unrestricted earnings as provided in the REIT law.
MREIT will also be releasing its first quarterly dividend to investors by October, after the company lists with the Philippine Stock Exchange.
MREIT is in the middle of a P15.29 billion IPO.
It is offering to the public 949.84 million shares, divided into 844.3 million shares covering the primary offer and another 105.54 million shares covering the greenshoe option, at an offer price of P16.10 per share.
