{"id":328548,"date":"2024-07-29T02:05:56","date_gmt":"2024-07-28T18:05:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328548"},"modified":"2024-07-29T02:06:18","modified_gmt":"2024-07-28T18:06:18","slug":"stock-in-focus-areit-inc-areit-29-july-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-areit-inc-areit-29-july-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: AREIT Inc. (AREIT) – 29 July 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AREIT<\/td><\/tr>
Company Name<\/strong><\/td>AREIT Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 July 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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With quantitative easing by the BSP on the horizon, REITs are poised to surge, as they will become appealing to income-seeking investors. AREIT, as the largest REIT with a strong dividend track record, remains a standout. We reiterate our BUY recommendation with a fair value of PHP 41.10. Note that AREIT previously declared its highest cash dividend since IPO at P0.56 per share.<\/p>\n\n\n\n

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

In the 1st quarter (1Q) of 2024, AREIT\u2019s bottomline rose by +25% year-on-year (y\/y) to P1.44 billion amidst the +25% y\/y growth in its topline, reaching P2.11 billion, primarily driven by the recent asset infusion of the six properties in its portfolio from its sponsor ALI. Recall that properties that were infused to AREIT last year were: (1) One Ayala Avenue East, (2) One Ayala Avenue West, (3) Glorietta 1, (4) Glorietta 2, (5) MarQuee Mall, and (6) Seda Lio bringing its total GLA to 936k sq.m.<\/p>\n\n\n\n

Recently, the firm signed a deed of exchange for another 6 properties from its sponsor which are: (1) Holiday Inn and Suites Makati, (2) Ayala Triangle Tower 2 office building, (3) Greenbelt 3, (4) Greenbelt 5, (5) Seda Ayala Center Cebu, (6) and a 276-ha industrial land in Zambales. With these additions, AREIT\u2019s AUM is poised to climb to P117 billion, signaling a significant leap in its growth trajectory.<\/p>\n\n\n\n

In the face of a tough market, where Metro Manila\u2019s office vacancy rate hit 20.9% in 1Q 2024 (data by Santos Knight Frank), AREIT has defied the trend. Despite having 62% of its portfolio in office spaces, AREIT has achieved 96% occupancy rate, significantly exceeding the industry average. This highlights the quality and strategic placement of AREIT\u2019s assets, exhibiting their resilience in challenging times.<\/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>