Andrew Tan’s REIT posts 18% rise in distributable net income

 

MREIT, the real estate investment trust of ultra bilyonaryo Andrew Tan’s Megaworld Corp., chalked up distributable income of P639 million in the first quarter, up 18 percent on new contributions from recent acquisitions.

The company reported a net income of P687.2 million on the back of P901.6 million in revenues.

Last December, four income-generating properties valued at P9.1 billion were infused into MREIT. This expanded MREIT’s portfolio GLA by 25 percent from 224,000 square meters during its initial public offering to 280,000 sqm with occupancy rate averaging at 96 percent, with five office assets registering 100 percent occupancy.

As of end-March, the company’s portfolio value stood at P59.3 billion

“Our solid performance in the first quarter of 2022 affirms our efforts to sustain MREIT’s growth via a combination of organic and inorganic means. The combination of rent escalation, steady occupancy, and implementation of our acquisition plans puts us on track to deliver on our targeted returns for our shareholders in 2022,” said Kevin L. Tan, president and CEO of MREIT.

The company plans to declare dividends amounting to P1 per share this year, six percent higher than the original plan.

MREIT said an additional four prime properties worth P5.3 billion will be added to its investment portfolio. Once completed, the acquisition will boost MREIT’s portfolio GLA by 16 percent to 325,000 sqm.

SOURCE: Bilyonaryo

Read More

Andrew Tan’s Megaworld swings to positive growth, earns P13.4B profit in 2021

Megaworld Corp., the property arm of bilyonaryo Andrew Tan, returned to familiar ground with a 36 percent jump in profit last year.

In a statement, Megaworld said net earnings rose to P13.4 billion last year from P9.9 billion in 2020 as all core businesses registered double digit growth.

Consolidated revenues grew 17 percent to P50.8 billion on strong sales. Real estate sales climbed by 25 percent to P31.1 billion as construction activities picked up during the year.

Reservation sales increased by 17 percent to P80 billion,.

“There has been a huge demand for titled lots, from both our residential and commercial offerings last year. We can see this trend to continue even this year,” said Kevin L. Tan, chief strategy officer at Megaworld.

The office segment saw rental income soar to an all-time high of P11.1 billion, closing around 236,000 square meters of new and renewal transactions.

Megaworld Lifestyle Malls, on the other hand, continued to feel the pandemic’s pinch as rental income fell 10 percent to P2.3 billion amid the lockdowns imposed during the year to curb the virus.

Meanwhile, revenues from the hotel business grew 30 percent to P1.9 billion due to the consistent performance of the company’s in-city hotels and the opening of Kingsford Hotel in the company’s Westside City township within the Entertainment City.

“In 2021, we shifted gears from pandemic management to restarting our growth trajectory, and our initiatives on this front have begun to bear fruit. As our numbers have shown, all our business segments registered significant improvements, even as we continue to provide assistance to ensure the recovery of our various stakeholders,” Tan said.

SOURCE: Bilyonaryo

Read More

Andrew Tan’s MREIT books P2B profit in first 6 months of operations

 Megaworld-backed MREIT Inc. posted a net income of P2 billion in the six months ending December last year, boosted by a fair value gain on investment properties worth P702 million.

Revenues rose five percent to P1.5 billion.

Given its robust performance, the company has approved the declaration of dividends amounting to 24 centavos per share for the fourth quarter of 2021. This brings the total dividends declared by MREIT last year to 48 centavos per share.

The dividends shall be payable on March 31 to shareholders on record as of March 18.

“We are pleased with the accomplishments of MREIT to date and are thankful for all the support that we have received from our shareholders, as evidenced by the strong performance of MREIT shares in the bourse. We aim to build on this momentum as we embark on our expanded acquisition plan this year,” said Kevin L. Tan, president and CEO of MREIT.

MREIT is looking to acquire up to P20 billion worth of office assets, which will expand its gross leasable area to around 500,000 square meters by the end of 2023 and achieve an annual total shareholder return of at least 10 percent via organic growth and new acquisitions.

“We also want to look at opportunities to expand our portfolio footprint to Megaworld’s other townships,” Tan said.

MREIT plans to eventually expand its portfolio GLA to one million sqm before the end of the decade as part of its goal to be one of the largest office REITs in Southeast Asia.

SOURCE: Bilyonaryo

Read More

Kevin Tan bulks up MREIT’s portfolio with the infusion of P20B worth of office assets

 The real estate investment trust (REIT) unit of township developer Megaworld will see its portfolio expand to P78.5 billion this year with the infusion of P20 billion worth of office assets.

MREIT president Kevin Tan said these properties, which will come from various Megaworld townships across the country, have a multinational tenant base which include large financial, healthcare, technology and consulting firms.

“MREIT is looking to surpass its target for 2022 in terms of asset injection…We earlier announced an additional 44,300 square meters by end of the year, but we are working to further bulk it up with more assets as we continuously look for ways to increase dividend yields for our shareholders,” said Tan.

SOURCE: Bilyonaryo

Read More

Andrew Tan’s MREIT to invest in townships, logistics

The real estate investment trust (REIT) of bilyonaryo Andrew Tan’s Megaworld Corp. is diversifying its portfolio to include townships as well as industrial and logistics properties.

In its three-year growth plan submitted to securities regulators, MREIT said it was looking at investing in other real property sectors that meet its investment criteria for Grade A, centrally-located, stably occupied, and income-producing properties.

MREIT aims to deliver an annual total shareholder return of at least 10 percent through organic growth and new acquisitions.

In selecting assets for future investments, MREIT said the potential property should be located in a prime location in either Metro Manila or key provinces in the Philippines.

Acquisitions will be funded either through debt or equity or a combination of both.

The company currently carries minimal debt at 12.4 percent of deposited properties, well below the aggregate leverage limit of 35 percent which may be further increased to 70 percent for REIT companies that have a publicly disclosed investment grade credit rating by a duly accredited or internationally recognized rating agency.

MREIT’s property portfolio is currently valued at P58.5 billion with the infusion of four prime office buildings in Philippine Economic Zone Authority-registered zones. These include Two Techno Place, Three Techno Place and One Global Center, which are all located in Iloilo Business Park, and World Finance Plaza in Mckinley Hill in Fort Bonifacio.

 SOURCE: Bilyonaryo

Read More

MREIT delivers best first-day returns among REITs

Megaworld-sponsored MREIT Inc. had a solid stock market debut last week, closing nearly four percent higher than its initial offer price, making it the most successful listing of a real estate investment trust on the Philippine Stock Exchange.

MREIT has so far delivered the best debut performance among REITs. On its first trading day, the stock rose 3.73 percent or 60 centavos to finish at P16.70 on volume of 33.478 million shares valued at P558.5 million. It even reached a high of P17.16 intraday.

Ayala Land Inc.’s AREIT – the pioneer REIT in the Philppines – opened at P27 per share or the same as its IPO price but fell 7.8 percent to P24.90 apiece.

DoubleDragon Properties Corp.’s DDMPR, the second REIT to list on the PSE, peaked at P2.40 before closing at its listing price of P2.25 apiece.

Gotianun-led FILREIT edged up slightly at P7.02 from its IPO price of P7.

The Gokongwei family’s RL Commercial REIT, which is backed by Robinsons Land Corp., went as high as P6.55 before closing at P6.46, slightly higher than its initial offer price of P6.45 per share.

SOURCE: Bilyonaryo

 

Read More

Overwhelming response: MREIT IPO attracts steady stream of investors

The initial public offering of Megaworld-sponsored MREIT Inc. is shaping up to be a big success.
In an interview with ANC, BDO Capital president Ed Francisco said the IPO has received an overwhelming response from some of the world’s largest fund managers and high net worth individuals.

In an interview with ANC, BDO Capital president Ed Francisco said the IPO has received an overwhelming response from some of the world’s largest fund managers and high net worth individuals.

Francisco said the decision to downsize the offering and IPO price was warmly welcomed by investors as orders kept pouring in. The IPO is already two times oversubscribed and could generate even more investor demand.

“We spoke to the big funds, and basically, the big funds and high net worth investors of these funds were the ones who ordered. No final numbers yet. But, we were looking at least in the foreign institutional investors and foreign domestic investors, so that was a very good feedback that we got. We’re very happy.

“And that’s why we’re bidding the price down and the effective price also went down. So that’s why there’s that interest and we’re pleasantly surprised that there’s more people coming out saying they will wait but now that they found out the rate and they heard about the upcoming news announcements of Kevin Tan they’re excited and they’re trying to get more shares,” Francisco said.

A special dividend awaits investors, he said.

“If you buy MREIT, in a month there will be a special dividend already . There’s a cash return already for you,” Francisco said.

Francisco noted MREIT’s dominant position in the office space that will allow it to generate multi-year growth.

He said the real estate investment trust of the country’s leading office landlord, Megaworld, has a superior portfolio free of Philippine Offshore Gaming Operators (POGO).

Most of its office properties are Philippine Economic Zone Authority-accredited cyber zones and are occupied by high quality business process outsourcing companies and multinational firms, making MREIT attractive to income hunters.

“Megaworld Group has no POGOs, and MREIT has no POGOs. That’s what differentiates it with the other REITs in the market. Again, they are PEZA-registered and that gives them that unique superior ability,” Francisco said.

Tan, president of MREIT, has committed to boost MREIT’s leasable portfolio to one million square meters in the next five to 10 years in line with its goal to be the country’s largest and fastest growing REIT in Southeast Asia.

Next year, Megaworld is infusing an additional 100,000 square meters of prime office assets to boost its portfolio to around 324,000 sqm by end-2022.

MREITs initial portfolio of 224,431 sqm consists of 10 prime office buildings in three of Megaworld’s most established township locations. These include 1800 Eastwood Avenue, 1880 East Avenue, E-commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley Building, 18/20 Upper McKinley Building, One Techno Place Iloilo, Richmonde Tower and Richmonde Hotel Iloilo.

“We only see this as the beginning of a very long growth runway. We thank investors for their trust and confidence in supporting our IPO. We are excited about the opportunity to grow and create value for our sponsor, our investors and for the country”, said Tan.

SOURCE: Bilyonaryo

Read More

REIT dividend yield to continue luring investors

HAVING an attractive dividend yield will continue to lure investors to real estate investment trust (REIT) listings despite cautious sentiment amid uncertainty brought by the coronavirus disease 2019 (COVID-19) pandemic, analysts said.

MREIT, Inc., the REIT sponsored by Megaworld Corp., said its final offer will comprise 844.30 million common shares and an overallotment option of up to 105.54 million shares. This is down from its initial plan to offer 1.08 billion shares with an overallotment of up to 161.7 million shares.

“The reduction of offer shares tells us that the demand for these office leasing REITs may have started to decline. The last four REIT listings that happened over the span of 12 months [have] given the market all the exposure that it wants in this sector,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a text message on Friday.

Ayala-led AREIT, Inc. is the Philippine Stock Exchange’s (PSE) first REIT listing, which made its market debut in August last year. DoubleDragon Properties Corp.’s DDMPR, Inc. led this year’s offers in March, followed by Filinvest Land, Inc.’s Filinvest REIT Corp. last month.

Meanwhile, the REIT unit sponsored by Robinsons Land Corp., RL Commercial REIT, Inc., is slated to list on the PSE on Tuesday, Sept. 14.

“Investors may want to see how [MREIT] performs in the next few quarters before increasing their positions in this area, since the assets between the REITs are similar and do not have any major advantages against the other,” Mr. Mangun said.

Meanwhile, MREIT also set its final initial public offering (IPO) price to P16.10 apiece, 27% lower than the P22 each maximum offer price it set on its prospectus.

“Given the current state of the economy as well as the uncertainty over how the COVID-19 pandemic will unfold in the coming months, the IPO’s final offer price may encourage more investors to participate in the offer given the higher dividend yield,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Saturday.

MREIT President Kevin Andrew L. Tan said in an e-mailed statement on Friday that its IPO was priced “to provide more upside to IPO investors,” who were dubbed as the company’s “long-term partners.”

Its projected dividend yield is at 5.65% for 2022 and is said to be around 6.1% for 2023. 

“Recall that this may potentially be higher according to MREIT’s management as occupancy as of August was already at 100%,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message on Friday.

“Our view is that the offering is attractive given the yield that is slightly higher than AREIT [at] 5.4%,” he added.

Timson Securities’ Mr. Pangan said MREIT currently offers “much more attractive yields,” while AAA Southeast Equities’ Mr. Mangun said it may “potentially become the highest-paying REIT on the PSE.”

“However, these projections are solely based on their prospectus as no earnings reports for fiscal year 2022, which just started last July 1, 2021, have been reported,” Mr. Mangun added.

MREIT may raise up to P15.29 billion in proceeds, should the overallotment option be exercised. This will be used to fund the development of 21 Megaworld projects across 11 of its townships in the country within the next 12 months. This includes 15 office developments, five lifestyle malls, and one hotel.

“[Megaworld] will be receiving more proceeds once it completes the impending cash injection of three buildings into MREIT, which is slated to be completed by early 2022,” Mr. Tan said.

MREIT was said to have attracted strong demand from institutional investors both here and abroad.

“At the current issue size, the institutional tranche was close to two times oversubscribed, which bodes well for aftermarket performance,” MREIT’s Mr. Tan said. 

“Local demand [is] expected to build up further as retail [investors are] waiting for final price,” BDO Capital & Investment Corp. President Eduardo V. Francisco said in a text message on Friday.

Post-IPO, Megaworld will have a 62.5% stake “to capture more near-term and long-term valuation upsides” as its REIT unit continues to grow along with the country’s REIT industry.

“MREIT expects both its market cap and float to grow over time as it successfully executes on its aggressive growth trajectory,” Mr. Tan said.

SOURCE: BusinessWorld

Read More

Kevin Tan: MREIT IPO’s institutional tranche 2x oversubscribed

 

The institutional tranche of MREIT Corp.’s initial public offering is twice oversubscribed, reflecting healthy investor interest for the issue backed by the country’s biggest office landlord Megaworld Corp.

MREIT president Kevin Tan said the company downsized its IPO and priced it at P16.10 per share, below the maximum proposed price of P22 in its desire to please investors.

“The company has decided to price the deal at an attractive level to provide more upside to IPO investors who will be its long-term partners in this new journey. At this IPO price, MREIT will be offering investors an attractive dividend yield of 5.65 percent to be distributed quarterly, and at the same time, we will be giving them exposure to high quality, fast-growing portfolio of assets,” said Tan, who is also chief strategy officer at Megaworld.

“If we exercised full option, it would have still been oversubscribed 1.5x. At this current size we are 2x,” he pointed out.

From the original plan of 1.078 billion shares, MREIT’s offer size has been whittled down to 949.84 million shares including an overallotment option of up to 105.54 million shares.

At its new price, MREIT’s maiden share sale could generate up to P15.3 billion, enough to support Megaworld’s 21 projects across the country in the next 12 months.

MREIT owns 10 office buildings catering to outsourcing firms and a hotel with a gross leasable area of nearly 225,000 square meters (2.4 million square feet), equivalent to 31 soccer pitches. It will add five more income-generating assets totaling 100,000 sqm in 2022, which is seen to boost the company’s dividends to shareholders.

“MREIT, being Megaworld’s flagship REIT, is being structured to deliver fast growth and strong aftermarket performance,” Tan said.

Tan said Megaworld would maintain a 62.5% stake in MREIT “to capture more near term and long term valuation upsides for its shareholders as MREIT actively grows its portfolio with the maturation of the overall REIT industry in the Philippines.”

SOURCE: Bilyonaryo

Read More

Frederick Go’s RLC still biggest REIT IPO after Megaworld lowers MREIT offer

Megaworld-sponsored MREIT Inc. cut the size of its initial public offering by nearly a quarter and priced it below the P22 maximum price indicated in its IPO filing.

Megaworld-sponsored MREIT Inc. cut the size of its initial public offering by nearly a quarter and priced it below the P22 maximum price indicated in its IPO filing.

In a disclosure to the stock exchange, Megaworld said MREIT priced its IPO at P16.10 per share to raise as much as P15.3 billion or just 56 percent of its initial target of P27.3 billion.

This is 53 percent lower than the P23.5 billion offer of Robinsons Land Corp.’s REIT, the largest so far in terms of market capitalization, portfolio valuation and asset size.

MREIT will now offer up to 949.84 million shares to the public including an over allotment option of up to 105.54 million shares.

It will be the fifth REIT to list on the exchange after AREIT, DDMP REIT, Filinvest REIT and RL Commercial REIT.

The offer period will run from Sept. 14 to 20 while the company’s shares will start trading on Sept. 30.

SOURCE: Bilyonaryo

 

Read More

Kevin Tan’s vision: Build Megaworld REIT as biggest in Southeast Asia

Bilyonaryo Kevin Tan doesn’t think small.

As chief strategy officer of Megaworld Corp. (MEG), Tan wants his family’s real estate investment trust, MREIT, to be a giant not only in the Philippines but in the Southeast Asian region as well.

Tan expects MREIT to double its size in three years and reach one million square meters (sqm) within five to ten years.

“Our vision is to make MREIT the largest REIT in Southeast Asia in terms of floor area. MEG is now 1.4 million square meters in leasable office portfolio, which is among the biggest in Southeast Asia,” said Tan.

In comparison, Singapore’s largest office builder, Capitaland, has only 960,000 sqm GLA.

MREIT will primarily be an office play with a 10 percent retail share in the buildings portfolio.

Tan said MEG would only inject best-in-class Premium Grade A offices into MREIT.

MREIT’s initial portfolio includes 10 office buildings and a hotel with a gross leasable area of 225,000 sqm.

MEG is seeking to raise as much as P27.3 billion from MREIT’s initial public offering of up to 1.4 billion shares including an overallotment option at a maximum price of P22 each.

Excluding the greenshoe, the IPO will raise up to P23.7 billion which MEG plans to use to bankroll the construction of more office buildings, malls, and hotels.

The son of MEG founder Andrew Tan is hands-on in his role as MREIT president and CEO as he personally took charge in Zoom meetings with local and foreign investors. Along with DDMPR’s Ferdinand Sia, Tan is the only president among REITs with a direct stake in the business.

The 41-year old has big visions but has a micromanagement style in all his roles in the family business from CEO of Alliance Global Group to president of Infracorp Development to head of Agile Digital Ventures (which operates Pickaroo and Boozy apps).

 SOURCE: Bilyonaryo 

Read More