Philippine office real estate investment trust MREIT Inc. reported a 34% increase in first-half distributable income, helped by acquisitions completed earlier this year, higher portfolio occupancy and improved operating efficiency, according to filings seen by Business News Asia.
Distributable income rose to P2.49 billion in the January-June period from a year earlier, outpacing a 26% increase in revenue to P3.41 billion, the Megaworld-backed REIT said on Wednesday.
Net operating income margin expanded to 81% from 79.8% a year earlier, as cost efficiencies offset inflationary pressures and higher energy-related expenses. The company said its transition to 100% renewable electricity across its portfolio helped reduce exposure to volatile power generation costs while supporting its sustainability goals.
Portfolio occupancy improved to 90% from 89% in the same period last year, remaining above prevailing office occupancy rates in Metro Manila and provincial markets, according to the company.
MREIT declared a second-quarter cash dividend of P0.2630 per share, up 5% from a year earlier. The dividend will be paid on Aug. 28 to shareholders on record as of Aug. 14.
The latest payout brings total first-half dividends to P0.5260 per share, equivalent to an annualized dividend yield of 7.6% based on the stock’s last closing price.
Chief Executive Officer Jose Arnulfo Batac said the company’s recent acquisitions were structured to generate higher dividends on a per-share basis, with the benefits of its fourth wave of asset infusions now reflected in shareholder returns.
MREIT is also moving ahead with its fifth asset infusion, a previously announced P27-billion property-for-share swap that would expand its portfolio to more than 950,000 square meters, subject to regulatory approval.
Under the proposed transaction, Megaworld will inject additional office assets into MREIT in exchange for new shares priced at P16.50 each, representing an 18.6% premium to the REIT’s 30-day volume-weighted average share price.
The acquisition will be MREIT’s largest portfolio expansion since its listing and is aimed at supporting further dividend-per-share growth, the company said.
Business News Asia
