MREIT Inc., the real estate investment trust of Megaworld Corp., ended its strongest quarter yet, as a major asset infusion and higher operational efficiency lifted earnings across its office portfolio.

Growth was anchored on “Wave 4,” a P16.2-billion property-for-share swap approved in March that added nine Grade A office towers in McKinley Hill. The deal expanded MREIT’s gross leasable area by around 34 percent to 647,000 square meters, with income contribution applied retroactively to 1 Jan.

The expansion helped push distributable income up 34 percent year-on-year to a record P1.25 billion. Revenues also rose 29 percent to P1.72 billion, while net operating income margin improved to 81.6 percent from 80.3 percent, reflecting tighter cost controls and better portfolio performance.

Jose Arnulfo C. Batac, president and CEO, said the latest acquisition delivered as expected from the start.

“Our first-quarter results show Wave 4 performing as intended—accretive from day one and at a scale that meaningfully lifts both our earnings base and margin profile,” Batac said. “This is the disciplined, accretive growth we committed to our shareholders, and it sets a strong foundation for the rest of the year.”

Beyond its office-heavy portfolio, MREIT is preparing to widen its asset mix. The company is planning to enter the retail segment through mall assets expected to be infused in the second half of the year, subject to approvals. The expansion supports its goal of reaching one million square meters of gross leasable area by 2027.

MREIT currently holds prime office assets in key Megaworld townships, including McKinley Hill, McKinley West, Eastwood City, Iloilo Business Park, and Davao Park District.