AREIT disclosed last week that the Philippine Stock Exchange (PSE) approved its application to list an additional 483.24 million common shares to cover the company\u2019s property-for-share swap transaction with Ayala Land, Inc. (ALI).<\/p>\n\n\n\n
Our View:<\/strong> The transaction, as announced last year October 7, will infuse six commercial properties spread across Quezon City, Laguna, Bacolod, Makati City, and Muntinlupa City, expanding total GLA to 549k sqm and portfolio value to P53 Billion.<\/p>\n\n\n\n Much this has already been priced in and is in step to AREIT\u2019s 2x portfolio growth target. The transaction is expected to be followed by the infusion of six office buildings in Cebu (valued at P11.26 Billion) towards the end of the year. This will increase total portfolio GLA to 673k sqm and AUM by 21% to P64 Billion.<\/p>\n\n\n\n However, despite the additional assets, projected dividend yield 2023 remained the lowest among other REITs at 5.7%. Its nearest comparables, MREIT and RCR, still offer yields around 7% level at 7.2% and 6.9%, respectively.<\/p>\n\n\n\n Valuation-wise, MREIT (consensus Target Price: P21.20) and RCR (consensus Target Price: P7.60) also offers higher potential upsides at 38% and 26%, respectively, vs. AREIT\u2019s 18% upside to consensus Target Price of P45.90. Investors may also consider VREIT and CREIT given their significant projected div. yields of 9.5% and 8.2%, respectively. Do note, however, that implied risks are higher given the perceived quality of their assets which are lower than those of MREIT and RCR.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-317239","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=317239"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317239\/revisions"}],"predecessor-version":[{"id":320529,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317239\/revisions\/320529"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=317239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=317239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=317239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}