MREIT Inc., the real estate investment trust (REIT) of top township developer Megaworld Corp., is raising its authorized capital stock by 60 percent to ₱8 billion from ₱5 billion so it can issue more shares for the acquisition of fresh assets.

In a disclosure to the Philippine Stock Exchange (PSE), MREIT said its board of directors has approved the capital increase and the issuance of up to 1.36 billion primary common shares to support the company’s growth “by facilitating the infusion of additional assets under management (AUM).”

The proposed capital increase and share issuance will be voted on during the Annual Stockholders’ Meeting scheduled on September 29, 2025.

Once approved, these measures are expected to pave the way for a significant infusion of prime, income-generating assets, further enhancing portfolio scale and earnings capacity.

MREIT is targeting to reach one million square meters of gross leasable area (GLA) by 2027, three years ahead of its original plan.

“When we envisioned MREIT, our goal was to build a REIT that would grow faster and deliver more value than the market expected. Accelerating our one million square meters GLA target to 2027 aligns with that vision, especially amid a more accommodative global rate environment.

“Soon, Megaworld will have close to 1.7 million square meters of office GLA and close to 700,000 square meters of mall GLA, giving MREIT unparalleled access to a deep pipeline of prime assets,” said MREIT Chairman Kevin L. Tan.

MREIT President and CEO Jose Arnulfo C. Batac said “This strategic initiative positions MREIT to capture growth opportunities at a faster pace, reinforcing our commitment to deliver sustainable value to our shareholders. We will definitely achieve our one million square meters GLA target ahead of schedule,”

Megaworld also targets to grow its office GLA to two million square meters and its retail GLA to 1 million square meters by 2030.

These targets will bring Megaworld’s total leasing portfolio GLA to 3 million square meters, ensuring a deep and sustainable pipeline of potential assets for MREIT in the long term.

The planned infusion of additional assets, subject to stockholder approval, is expected to significantly boost MREIT’s earnings base, dividend-paying capacity, and market presence in the coming years, while cementing its position as one of the largest office REITs in the country.

“Our portfolio’s quality, scale, and income resilience give us the confidence to accelerate our plans. We are well-positioned to capitalize on the robust demand for Grade A office spaces and further diversify into complementary asset classes,” Batac said.

To date, MREIT’s portfolio comprises 24 prime office properties strategically located in five Megaworld premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

This comes as MREIT sustained its earnings momentum in the second quarter of 2025, with distributable income rising 25 percent year-on-year to ₱932 million, and revenues climbing 32 percent to ₱1.36 billion.

MREIT’s revenues in the first half of 2025, meanwhile, reached ₱2.70 billion, up 28 percent from the previous year. Distributable income also climbed by 26 percent to ₱1.86 billion in the same period.

The strong performance was driven by the contribution of the six newly acquired office properties in 2024, sustained rental escalations, and resilient occupancy levels across the portfolio.