Real estate investment trusts (REITs) have emerged as an exciting investment asset class for Filipinos. Through the Philippine Stock Exchange, investors can now gain real estate exposure without the hefty capital typically required for conventional properties. One notable player in this space is Megaworld, which offers the Megaworld REIT, Inc. (MREIT) – a compelling investment vehicle that allows individuals to become part-owners of prime office buildings in Eastwood City, McKinley Hill, and Iloilo Business Park. If you're intrigued by this opportunity, here are five reasons why MREIT could be your next investment of choice.
1. Prime Assets in Top-Notch Locations
Unlike other listed REITs, MREIT's assets are carefully handpicked prime office buildings with PEZA accreditation. These Grade A buildings, owned entirely by MREIT, are strategically located in proven township areas. With no partial ownership or floors, these assets are coveted for their exclusivity and promise substantial returns. By investing in MREIT, you gain access to properties in desirable locations, poised for long-term growth and stable rental income.
2. Unmatched Growth Potential
MREIT's growth trajectory is unmatched within the REIT landscape. Megaworld, the parent company, boasts an impressive portfolio of 1.2 million square meters of office assets. By injecting 224,431 square meters of these assets into MREIT, with an additional 177,700 square meters currently under construction, MREIT has the longest runway for growth in the country. President and CEO Kevin L. Tan has projected doubling the portfolio to 500,000 square meters by 2024 and reaching a staggering one million square meters by 2030. This ambitious growth plan positions MREIT to become the largest REIT in Southeast Asia, surpassing industry giants in Singapore and Thailand.
3. Top-Quality Tenants and High Occupancy Rates
MREIT's existing office assets boast close to 100% occupancy rates, guaranteeing maximum rental revenues. Megaworld's office buildings are renowned for attracting leading names in the IT-BPO industry. As a result, MREIT's tenant base includes established companies that have been in the buildings for over a decade, such as IBM in Eastwood City. Other notable tenants across MREIT's buildings include NTT Data, WNS, Refinitiv, Ericsson, Colgate-Palmolive Philippines, Thomson Reuters, and Reed Elsevier. This impressive roster of high-quality tenants ensures a steady stream of income and the potential for future growth.
4. Attractive Dividend Yield
One of the primary reasons investors are drawn to MREIT is its attractive dividend yield. For the fiscal year of 2022, MREIT offered a dividend yield of 5.65%, proving highly appealing to IPO investors. With its high-quality and fast-growing portfolio, this figure is projected to increase to 6.1% by the fiscal year 2023. Furthermore, with MREIT's expansive acquisition pipeline, industry analysts believe it has the potential to become the highest-paying REIT on the Philippine Stock Exchange.
5. Powered by the Largest Sponsor Company
Megaworld, the sponsor company behind MREIT, holds the largest inventory of leasable office spaces in the country, according to Leechiu Property Consultants. With plans to launch 100,000 square meters every year, Megaworld aims to increase its gross leasable area to a monumental 2 million square meters within the next decade. Additionally, Megaworld leads the pack in PEZA-accredited office buildings, solidifying its industry leadership among major property developers.
By investing in MREIT, you align yourself with a trusted brand, backed by a sponsor company with extensive experience and an impressive track record.
In conclusion, MREIT offers a unique opportunity to invest in prime office buildings without the burdensome capital requirements. With a coveted portfolio, exceptional growth potential, high-quality tenants, attractive dividends, and the support of a market leader, MREIT stands out as an enticing investment option. Don't miss your chance to participate in their upcoming IPO and secure your stake in the future of real estate investment in the Philippines.