{"id":332396,"date":"2025-04-30T00:45:38","date_gmt":"2025-04-29T16:45:38","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332396"},"modified":"2025-04-30T00:45:41","modified_gmt":"2025-04-29T16:45:41","slug":"stock-in-focus-mreit-inc-mreit-30-april-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-mreit-inc-mreit-30-april-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: MREIT, Inc. (MREIT) – 30 April 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MREIT<\/td><\/tr>
Company Name<\/strong><\/td>MREIT, Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 April 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 17.06<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our BUY recommendation for MREIT with a NAV of P17.06\/share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

MREIT, Inc.’s (MREIT) closed 2024 with a significant surge in Net Income (NI) by more than twentyfold to P3.97 billion, on the back of successful acquisition and commencement of income recognition in 4Q 2024 of 6 PEZA-accredited office properties, which were valued at P13.15 billion.<\/p>\n\n\n\n

The acquisition resulted in an expansion of MREIT\u2019s portfolio by over 156k sqm, which pushed its total GLA by +48% year-on-year (y\/y) to 482k sqm. Likewise, revenues climbed by +8.4% y\/y to P4.51 billion driven by strong rental income growth.<\/p>\n\n\n\n

With MREIT\u2019s third wave of asset infusions as well as strategic asset additions in areas such as McKinley West, Davao Park District, and Iloilo Business Park, the firm accumulated a GLA of 482k sqm as of end-2024. They aim to achieve around 1mn GLA sqm by 2027-2030.<\/p>\n\n\n\n

Despite economic headwinds, MREIT\u2019s current occupancy levels remain steadfast at 91%, ranging above the Metro Manila office industry average. The REIT continues to feature a stable tenant mix, the majority of which consists of BPO firms (80%) and traditional corporate tenants (16%). Both occupancy levels and WALE are estimated to improve as the firm signed new leases in 1Q 2025, indicating consistent leasing momentum.<\/p>\n\n\n\n

President Trump\u2019s recent implementation of 17% tariffs on the Philippines sparked market concerns, as these may signify an economic slowdown in terms of consumer spending and business activities, which could result in reduced demand for office spaces. The public infrastructure ban prior to elections also resulted in risks for the property sector, yet since MREIT\u2019s operations are primarily centered around private leasing activities, it is unlikely to have a significant impact on the firm.<\/p>\n\n\n\n

The BSP recently cut rates by 25 bps to 5.5%, as the central bank\u2019s latest inflation forecasts declined from the previous meeting in February. The reduced borrowing costs may act as a stimulus for the property market to recover in terms of affordable loans and increased real estate demand, and may also support higher dividend payouts for REITs.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>