MREIT, Inc., which is the real estate investment trust (REIT) owned by big property developer Megaworld, has announced plans to add a huge collection of properties to its portfolio. Think of it like a shopping basket that’s about to get much bigger – and this time, it’s their largest addition ever!
What’s a REIT? A REIT is like a company that owns buildings and properties, and people can buy shares in it. Instead of owning a building yourself, you can own a small piece of many buildings through the REIT.
How Big Is This Deal?
According to the company’s disclosure filed with the Securities and Exchange Commission (SEC), MREIT’s Board of Directors has approved a property-for-share swap transaction valued at P27 billion. This is the biggest asset addition among all REITs listed on the Philippine Stock Exchange this year when looking at total value.
This is MREIT’s fifth round of adding properties, called “Wave 5.” Once the SEC approves it, MREIT will manage properties worth a total of P122 billion. In 2026 alone, MREIT has added over P43 billion worth of properties, including a P16.2-billion addition (Wave 4) earlier in the first quarter.
What Properties Are Being Added?
The Wave 5 addition includes three types of properties: malls, hotels, and office buildings. Here’s the breakdown:
Shopping Malls (53% of the deal)
Five lifestyle malls with a combined space of 160,200 square meters:
- Festive Walk Mall in Iloilo Business Park, Iloilo City
- Lucky Chinatown Mall in Binondo, Manila
- Venice Grand Canal Mall in McKinley Hill, Taguig
- Eastwood Mall in Quezon City
- Southwoods Mall in Biñan City, Laguna
These malls are located inside Megaworld’s townships – areas that mix homes, offices, and shopping centers together.
Hotel (9% of the deal)
The Holiday Inn Express Manila Newport City, which has 737 rooms and 26,500 square meters of space. This is the biggest hotel in Newport City, which is located across from Terminal 3 of the Ninoy Aquino International Airport.
Office Buildings (38% of the deal)
Six office buildings with a total of 117,200 square meters:
- Science Hub Tower 2 in McKinley Hill
- Venice Corporate Center in McKinley Hill
- Six West Campus in McKinley West, Taguig City
- One Paseo in ArcoVia City, Pasig
- Global One in Eastwood City
- Horizon Center in Newport City
Why Is This Important?
This addition will make MREIT’s portfolio much more diverse. Right now, more than 95% of MREIT’s properties are office buildings. After Wave 5, the mix will change to:
- 77% office buildings
- 20% retail (malls)
- 3% hotel
The new properties will add 303,900 square meters of leasable space – the biggest expansion MREIT has done so far. After completion, MREIT will have more than 950,000 square meters of total space, getting close to their goal of 1 million square meters by 2027.
MREIT will also expand from being in five Megaworld townships to nine townships, spreading their properties across more locations.
How Well Are These Properties Doing?
According to the disclosure, the Wave 5 properties have a 91% occupancy rate, meaning 91 out of every 100 available spaces are being rented out. The average lease contract still has 5.3 years remaining before it expires.
How Will the Deal Work?
MREIT will get these properties through a “property-for-share swap” with Megaworld, Travellers International Hotel Group, Inc., and Southwoods Mall, Inc. Instead of paying cash, MREIT will issue new shares valued at P16.50 per share.
The company notes that this price is 18.6% higher than the 30-day Volume-Weighted Average Price (VWAP), which means they’re paying above the recent average trading price. MREIT says this shows they’re being careful to make sure the expansion benefits shareholders through increased dividends per share, not just making the company bigger for the sake of size.
What the CEO Says
Jose Arnulfo Batac, President and CEO of MREIT, explained that as the company grows, they’re focusing on reducing costs across all their properties. He said this approach provides “a clear path to margin improvement and, in turn, dividend-per-share accretion for shareholders.” In simpler terms, he’s saying the company wants to make more money from each property while spending less, which should mean more dividends for people who own MREIT shares.
Batac added: “MREIT’s next phase of growth is about building a larger, more diversified platform that drives long-term value for shareholders.”
What Happens Next?
The deal still needs approval from the Securities and Exchange Commission (SEC) before it can proceed. The announcement was made on July 24, 2026, according to the SEC filing.
Disclaimer: The company notes that this announcement contains forward-looking statements subject to risks and opportunities that could affect MREIT’s plans. While MREIT believes their expectations are reasonable, they cannot guarantee future actions or events.
Source Note:This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
