The Megaworld
The dividend will be paid on March 31 to shareholders of record as of March 18. The dividend rate, multiplied by MREIT's [MREIT 19.30 1.73%] 2,532,121,381 outstanding shares, shows that MREIT will pay out a total of P607 million in dividends for the quarter.
MREIT said that its Q4/21 revenues grew by 5%, due to “implementation of new leases” and the “initial contribution of four properties” that MEG injected into MREIT in December.
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The Q4/21 dividend rate (P0.2399/share) is marginally smaller than the Q3/21 rate (P0.24/share), but this only translates to a couple hundred thousands pesos of difference between what was distributed between the quarters.
Not a big deal. But what is a bigger deal is that the Q3/21 dividend included a P0.05/share “bonus” of income from June of 2021; MREIT was able to equal its previous dividend but without the bonus this time.
MREIT has very aggressive expansion plans for the near future, and while the company will of course try to make all of the property injections “accretive” from a yield perspective (that is, boost/add to the yield), it will be interesting to track how the dividend, on a per-share basis, will change once these new properties are transferred from MEG down to MREIT.
I mean, being “yield accretive” is kind of a low bar.
Not all things “yield accretive” are created equal, as some MEG injection opportunities will naturally be better for MREIT shareholders than others.
That said, MREIT shareholders will be happy to be riding this horse in the REIT race, considering the top-line growth (more revenue from property injections), bottom-line growth (more money out of the same properties through better leases), big plans (expand the gross leasable area to 1 million square meters before 2030), and execution toward that plan (already injected properties in first 6 months with plans for more very soon).
The December injections make MREIT the only one of two REITs to actually inject new assets into their portfolios after their IPOs (the other is AREIT [AREIT 50.95 0.10%]), and while all of the communications out of the Andrew Tan-owned company were always “grow grow grow”, it’s very refreshing to see recent disclosures emphasize “organic growth” as an important source of dividend expansion.
A healthy mix of acquisition and optimization is what all REIT investors should be hoping for. Well, except for you, DDMP [DDMPR 1.77 0.56%] investors: there’s no hope for you!
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