Mreit, Inc. · PSE:MREIT
Mreit — Investor Presentation (June 2023)
34 slides from Mreit's investor presentation, Jun 1, 2023
Slide 1: Investor presentation
Confidential Investor presentation June 2023
Slide 2: Presenters
Presenters Kevin Andrew L. Tan Englebert G. Teh Andy Dela Cruz President and CEO, CFO, MREIT Head of Investor Relations, MREIT MREIT 1
Slide 3: Table of contents
Table of contents Section 1 Business update 3 Section 2 Latest financials 14 Section 3 Growth strategy 18 Section 4 Appendix 21
Slide 4: Business update
Section 1 Business update
Slide 5: About MREIT
About MREIT Megaworld-sponsored flagship REIT that is primarily focused on office and commercial leasing to a diversified tenant base Investment highlights Listed in the Philippine Stock Exchange on October 2021 1 Prime, Grade A, PEZA-Accredited office, hotel, retail and other assets located in inte
Slide 6: P5.3bn property-for-share swap
P5.3bn property-for-share swap MREIT has secured the approval from the SEC to acquire four prime, Grade A PEZA-accredited office properties for a total of P5.3 billion on 27 March 20231 Prime, Grade A PEZA-accredited office properties Festive Walk 1B, One West Campus, 44,567 sqm Iloilo Business Park
Slide 7: P5.3bn property-for-share swap (cont'd)
P5.3bn property-for-share swap (cont’d) The addition of the assets in McKinley West further solidifies MREIT’s position as the sole REIT in the market with a noteworthy presence in Fort Bonifacio Total GLA (k sqm) Total appraised value (P bn) 325 62.61 20 56.5 3.6 280 137 137 31.9 31.9 78 53 9.0 6.5
Slide 8: Latest portfolio overview
Latest portfolio overview MREIT’s prime, Grade-A Buildings, are located in integrated “live-work-play” townships which have transformed into new CBDs and growth areas of the country Eastwood City Iloilo Business Park McKinley Hill McKinley West Live ✓ Sponsor’s first township development that ✓ Inte
Slide 9: Overview of Eastwood City
Overview of Eastwood City 8
Slide 10: Overview of Iloilo Business Park
Overview of Iloilo Business Park 9
Slide 11: Overview of McKinley Hill
Overview of McKinley Hill 10
Slide 12: Overview of McKinley West
Overview of McKinley West 11
Slide 13: Latest operating metrics
Latest operating metrics Diversified blue-chip tenants comprised mostly of sticky tenants such as BPOs and traditional office, which contributes towards steady recurring rental income Tenant information 95% Tenant mix (by GLA) Latest leasing progress Occupancy rate BPO ✓ As of 31 May 2023, 77% 8% th
Slide 14: Industry update
Industry update Sustained demand post pandemic in the office segment to support MREIT's high levels of occupancy and rental rate escalation Recent industry highlights 1Q2023 New leases (in ‘000 sqm) Colliers reported new leases in 1Q2023 sustained at 147,000 sqm across the Philippines Ortigas 29 M
Slide 15: Latest financials
Section 2 Latest financials
Slide 16: Financial highlights
Financial highlights 12% growth in distributable income in 1Q23 when compared against 1Q22, boosted by the successful acquisition and consolidation of the new assets Rental income – billings (P m) Distributable income (P m) Key takeaways Performance of existing 781 portfolio remains strong with 692
Slide 17: Financial performance
Financial performance Office industry remains resilient, with strong results posted for 1Q23 (In P m) 4Q22 1Q23 QoQ (%) • 1Q23 Gen. & Admin Expense Revenues 937.3 1,035.9 11% includes a one-time expense Direct Operating Costs -207.0 -217.3 5% arising from the SEC Gen. & Admin. Expense -9.6 -20.2 110
Slide 18: Maximizing shareholder value
Maximizing shareholder value 1Q23 cash dividends brings MREIT’s annualized dividend yield to 7.2% Dividend per share (PHP) Dividend declaration Dividend per Share 0.2476 P0.2476 0.2468 0.2444 per share 0.2430 0.2428 0.2399 0.2400 Payment Date JUN 19 2023 Annualized Yield 7.2% based on the closing pr
Slide 19: Growth strategy
Section 3 Growth strategy
Slide 20: Runway for growth
Runway for growth MREIT aims to add 100k sqm gross leasable area within the year, and is committed to double its portfolio GLA from its IPO to 500k sqm by 2024 GLA growth trajectory (k sqm) Potential acquisition opportunities (k sqm) Portfolio Pipeline 1,000 209 MREIT aims to add 100k GLA by 2023 ye
Slide 21: MOU with Megaworld
MOU with Megaworld On June 1, 2023, MREIT announced an MOU with its sponsor Megaworld for the potential acquisition of up to 150,500 sqm of office assets. MREIT targets to execute definitive agreements by Q3 20231 Assets included in the MOU for potential acquisition1 Potential growth in GLA (k sqm)1
Slide 22: Appendix
Section 4 Appendix
Slide 23: MREIT's portfolio
MREIT’s portfolio Total GLA of 324,742 sqm as of 31 March 2023 324,742 portfolio gross leasable area sqm 1880 Eastwood Ave 1800 Eastwood Ave eCommerce Place GLA: 89,422 sqm P63 billion latest appraisal value % to Total: 28% 33,744 sqm 34,738 sqm 20,940 sqm One Techno Place Richmonde Tower Two Techno
Slide 24: Eastwood City masterplan
EASTWOOD CITY MASTER DEVELOPMENT PLAN A MEGAWORLD COMPANY
Slide 25: Iloilo Business Park masterplan
Iloilo Business Park masterplan 24
Slide 26: Overview of Iloilo Business Park post-acquisition
Overview of Iloilo Business Park post-acquisition 25
Slide 27: McKinley Hill masterplan
McKinley Hill masterplan Top half Bottom half 26
Slide 28: Overview of McKinley Hill post-acquisition
Overview of McKinley Hill post-acquisition 27
Slide 29: McKinley West masterplan
4 ONE West ant, ‘ ; . CAMPUS aie ee FIVE WEST < CAMPUS
Slide 30: Overview of McKinley West post-acquisition
Overview of McKinley West post-acquisition 29
Slide 31: Davao Park District masterplan
Davao Park District masterplan 30
Slide 32: Other updates
Other updates PROPERTY INDEX 3 IMMUNE “Resilient” Office Buildings 3 IMMUNE “Powerful” Office Buildings MREIT has been included in the PSE Property Index, effective February 6, 2023. This development is expected to enhance the liquidity of its shares, thereby creating greater value for its sharehold
Slide 33: Details on financing
Details on financing Details on outstanding 10-year unsecured senior loan drawn down in December 2021 Loan details P7.25bn Bank loan 3.64% p.a Cost of debt1 97.50% Bullet on year 10 MREIT’s leverage (as of 31 March 2023) 14% Net debt to equity ratio2 Source: Company information Note: 32 1 Subject fo
Slide 34: Disclaimer
Disclaimer These materials have been prepared and issued by MREIT, Inc. (the “Company”) solely for use at the investor presentation, and may not be used for any other purpose. This presentation is being provided as a source of preliminary information about the Company. This does not contain all mate