MREIT Posts Record Q1 Income, Up 34% on Portfolio Expansion

MREIT Inc., the real estate investment trust of Megaworld Corporation, posted its strongest quarterly performance to date in the first quarter of 2026, driven by gains from its latest acquisition and improved operating efficiencies.

MREIT’s portfolio includes prime income-generating properties across Megaworld townships such as McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District. (Photo: Megaworld International)

Distributable income rose 34% year-on-year to ₱1.25 billion, outpacing revenue growth of 29% to ₱1.72 billion.

The company said this reflects stronger operating leverage across its expanded portfolio.

Net operating income (NOI) margin increased by 130 basis points to 81.6%, up from 80.3% a year earlier, supported by cost efficiencies and improved asset performance.

The results reflect the full impact of MREIT’s Wave 4 acquisition, a ₱16.2-billion property-for-share swap that received approval from the Securities and Exchange Commission in March.

The transaction added nine Grade A office buildings in McKinley Hill, expanding the company’s gross leasable area (GLA) by about 34% to approximately 647,000 square meters.

Income from the acquisition was backdated to Jan. 1, 2026, allowing shareholders to benefit 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.

With Wave 4 fully integrated, the company is preparing for its next expansion phase, known as Wave 5, which is expected to introduce retail assets into its portfolio in the second half of the year.

Subject to due diligence and regulatory approvals, the move is aimed at bringing MREIT closer to its target of one million square meters of GLA by 2027.

MREIT’s portfolio includes prime income-generating properties across Megaworld townships such as McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District.

Its expansion pipeline is supported by Megaworld and its parent, Alliance Global Group, providing a steady supply of stabilized assets for future growth.