{"id":327987,"date":"2024-05-17T12:04:02","date_gmt":"2024-05-17T04:04:02","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327987"},"modified":"2024-05-17T12:04:04","modified_gmt":"2024-05-17T04:04:04","slug":"stock-in-focus-mreit-inc-mreit-17-may-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-mreit-inc-mreit-17-may-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: MREIT, Inc. (MREIT) – 17 May 2024 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 16.67<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Note that our concern for offices is anchored toward the segment\u2019s growth prospects but given that a REIT\u2019s value to shareholders is materialized through dividends, the current acquisition of offices is dividend accretive, meaning it would bode well for existing and future shareholders. Given all of the potential benefits to the company, we therefore assign a BUY rating to the stock with a Target Price of P16.67.<\/p>\n\n\n\n

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

Gearing for expansion<\/h3>\n\n\n\n

MREIT is looking to increase its portfolio by 157k-sqm as it plans to acquire P13.2-Billion worth of office properties. MREIT currently has 325k-sqm of property under its name, meaning this acquisition effectively increases the company\u2019s property portfolio by 48%, ending at a total of 482k-sqm.<\/p>\n\n\n\n

What properties?<\/h3>\n\n\n\n

The properties that will be acquired are: Two West Campus, Ten West Campus, One Le Grand, One Fintech, Two Fintech, and lastly, Davao Finance Center. 926.16-Mn shares of MREIT will be exchanged at P14.20\/share which is a 9.7% premium vs MREIT\u2019s last traded price of P12.94. The company is targeting 500k-sqm by end of year and 1M-sqm by 2027-2030. The ending office portfolio of 482k-sqm brings the company closer to their year-end goal.<\/p>\n\n\n\n

Company health<\/h3>\n\n\n\n

As we look at MREIT\u2019s numbers, we see that they are quite healthy given its 96% occupancy rate alongside a stable tenant mix with 72% BPO, 22% Traditional, 4% Retail, and 2% Hotel. The company has been declaring stable dividends as well with the most recent declaration of P0.246 translating to an annualized dividend yield of 7.6% based on MREIT\u2019s closing price of P12.94.<\/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>