MREIT to Accelerate Assest Infusion to Reach 1M SQM GLA by 2027 as Q2 Income Surges 25%

​MREIT, Inc., the real estate investment trust of property giant Megaworld, is targeting to reach 1 million square meters of gross leasable area (GLA) by 2027, three years ahead of its original plan. This after the Board’s endorsement of a capital increase and the issuance of up to 1.36 billion primary common shares for stockholders’ approval.

​The move comes as MREIT sustained its earnings momentum in the second quarter of 2025, with distributable income soaring 25% year-on-year to P932 million, and revenues climbing 32% to P1.36 billion.

The proposals, which will be voted on during the Annual Stockholders’ Meeting scheduled on September 29, 2025, include an increase in MREIT’s Authorized Capital Stock from P5 billion to P8 billion, as well as the issuance and listing of up to 1.36 billion primary common shares in exchange for cash and/or properties. Once approved, these measures are expected to pave the way for a significant infusion of prime, income-generating assets, further enhancing portfolio scale and earnings capacity.

“When we envisioned MREIT, our goal was to build a REIT that would grow faster and deliver more value than the market expected. Accelerating our 1 million square meters GLA target to 2027 aligns with that vision, especially amid a more accommodative global rate environment. Soon, Megaworld will have close to 1.7 million square meters of office GLA and close to 700,000 square meters of mall GLA, giving MREIT unparalleled access to a deep pipeline of prime assets,” says Kevin L. Tan, Chairman of MREIT.

“This strategic initiative positions MREIT to capture growth opportunities at a faster pace, reinforcing our commitment to deliver sustainable value to our shareholders. We will definitely achieve our 1-million square meters GLA target ahead of schedule,” says Jose Arnulfo C. Batac, President and CEO, MREIT, Inc.

Megaworld also targets to grow its office GLA to 2 million square meters and its retail GLA to 1 million square meters by 2030. These targets will bring Megaworld’s total leasing portfolio GLA to 3 million square meters, ensuring a deep and sustainable pipeline of potential assets for MREIT in the long term.

MREIT’s revenues in the first half of 2025, meanwhile, reached P2.70 billion, up 28% from the previous year. Distributable income also climbed by 26% to P1.86 billion in the same period. The strong performance was driven by the contribution of the six newly acquired office properties in 2024, sustained rental escalations, and resilient occupancy levels across the portfolio.

The planned infusion of additional assets, subject to stockholder approval, is expected to significantly boost MREIT’s earnings base, dividend-paying capacity, and market presence in the coming years, while cementing its position as one of the largest office REITs in the country.

“Our portfolio’s quality, scale, and income resilience give us the confidence to accelerate our plans. We are well-positioned to capitalize on the robust demand for Grade A office spaces and further diversify into complementary asset classes,” Batac added.
To date, MREIT’s portfolio comprises 24 prime office properties strategically located in five Megaworld premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.