News & Media

MREIT, Inc. (MREIT), the real estate investment trust company of Megaworld Corporation, delivered its strongest quarterly performance to date in the first quarter of 2026, as the immediate accretion from its recently completed Wave 4 acquisition combined with sharper operating efficiencies to lift earnings, revenues, and margins across the board.

Distributable income surged 34% year-on-year to P1.25 billion, outpacing revenue growth of 29% to P1.72 billion, a clear signal of the operating leverage embedded in the enlarged portfolio. Net operating income (NOI) margin expanded by 130 basis points to 81.6%, from 80.3% a year earlier, driven by cost efficiencies and stronger portfolio performance.

The quarter captured the full impact of Wave 4, the P16.2-billion property-for-share swap that secured SEC approval in March, ahead of the company's own timeline. The transaction added nine Grade A office buildings in McKinley Hill and anchored by multinational tenants, expanding MREIT's GLA by approximately 34% to around 647,000 square meters. With income contribution backdated to January 1, 2026, shareholders began benefiting from the acquisition from the start of the year.

"Our first quarter results show Wave 4 working exactly as intended: accretive from day one, and at a scale that meaningfully lifts both our earnings base and margin profile," said Jose Arnulfo C. Batac, President and CEO of MREIT, Inc. "The 130-basis-point expansion in NOI margin reflects the operating leverage of a larger, higher-quality platform. This is the disciplined, accretive growth we committed to our shareholders, and it sets a strong foundation for the rest of the year."

With Wave 4 now integrated, MREIT is turning to Wave 5, which is expected to mark the company's diversification into retail by infusing mall assets in the second half of the year. Subject to due diligence, valuation, and regulatory approvals, Wave 5 will bring MREIT materially closer to its goal of one million square meters of GLA by 2027.

MREIT's portfolio consists of prime income-generating assets located within Megaworld's townships, including McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District. Its visible expansion runway is backed by Megaworld's extensive pipeline of stabilized, income-generating properties and reinforced by the broader property portfolio of Alliance Global Group, giving MREIT one of the strongest sponsor-backed growth platforms among Philippine REITs.