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MREIT, Inc. ("MREIT"), the real estate investment trust of property giant Megaworld Corporation, has secured approval from the Securities and Exchange Commission (SEC) for its P27-billion Wave 5 property-for-share swap transaction, enabling the company to proceed with its largest asset acquisition to date. Upon completion, Wave 5 will bring MREIT's assets under management to approximately P122 billion.

Together with the P16.2-billion Wave 4 transaction completed in the first quarter, MREIT's asset infusions in 2026 will total over P43 billion.

With the SEC approval secured within 3Q2026, the Wave 5 assets are set to contribute to MREIT's income retroactively beginning July 1, 2026, enabling shareholders to immediately benefit from an acquisition that was structured to be materially accretive to dividends per share.

Wave 5 will add approximately 303,900 square meters of gross leasable area (GLA) to MREIT's portfolio. Upon completion, MREIT's portfolio will exceed 950,000 square meters of GLA.

The transaction represents MREIT's most significant diversification to date. From a portfolio that is over 95% office by GLA, the expanded portfolio will comprise approximately 77% office, 20% retail, and 3% hotel. It will also broaden MREIT's geographic footprint from five to nine Megaworld townships.

The Wave 5 portfolio consists of five lifestyle malls with a combined GLA of approximately 160,200 square meters: Festive Walk Mall, Lucky Chinatown Mall, Venice Grand Canal Mall, Eastwood Mall, and Southwoods Mall. It also includes the 737-room Holiday Inn Express Manila Newport City, with approximately 26,500 square meters of GLA, and six office assets totaling approximately 117,200 square meters of GLA: Science Hub Tower 2, Venice Corporate Center, Six West Campus, One Paseo, Global One, and Horizon Center.

The Wave 5 assets have a blended occupancy rate of 91% and a weighted average lease expiry (WALE) of 5.3 years, adding a diversified base of recurring income supported by established office tenants, retail activity, and hospitality demand across Megaworld's townships.

The assets were valued at a blended effective cap rate of 7.8%. Shares to be issued under the transaction were priced at P16.50 each, representing an 18.6% premium to MREIT’s VWAP calculated over the 30-day period preceding the Board’s approval of the transaction. This significant premium to market minimizes dilution to existing shareholders and supports material dividend-per-share accretion.

“Wave 5 demonstrates MREIT’s ability to translate the depth of Megaworld’s sponsor pipeline into tangible shareholder value. With SEC approval secured within the third quarter and the assets contributing income effective July 1, shareholders stand to benefit from the transaction’s material dividend-per-share accretion from the outset,” said Jose Arnulfo Batac, President and CEO of MREIT, Inc.

Following the completion of Wave 5, MREIT is preparing for its next round of asset infusions, Wave 6, which is expected to include select crown-jewel assets from sponsor Megaworld's portfolio in Uptown Bonifacio. The assets under evaluation are characterized by high office occupancy and strong retail foot traffic and sales, benefiting from their location within one of Megaworld's most established integrated townships. Any proposed infusion remains subject to due diligence, valuation, corporate approvals, and regulatory approvals.

MREIT expects its portfolio to be well above its one-million-square-meter GLA target by 2027. MREIT's visible growth pipeline is supported by Megaworld's extensive portfolio of stabilized, income-generating properties and reinforced by the broader property portfolio within Alliance Global Group, providing the company with a strong sponsor-backed platform for continued growth.