{"id":329663,"date":"2024-09-26T00:24:24","date_gmt":"2024-09-25T16:24:24","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329663"},"modified":"2024-09-26T00:24:26","modified_gmt":"2024-09-25T16:24:26","slug":"stock-in-focus-areit-inc-areit-26-sept-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-areit-inc-areit-26-sept-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: AREIT Inc. (AREIT) – 26 Sept 2024 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>26 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 43.64<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are rerating AREIT to a BUY, taking into consideration the beginning of the BSP\u2019 rate cut cycle, alongside future dividend-accretive asset infusions. We recommend a BUY on any dips for the stock given these progressions.<\/p>\n\n\n\n

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

Another placement incoming<\/strong><\/p>\n\n\n\n

ALI is currently looking to sell 75-Million of AREIT in a private placement at a price range of P35.05-36.20 as it seeks to raise P2.7-Billion. The offer represents a discount of 4-7% from LTP of P37.70. Despite the potential downside due to the private placement, we continue to see AREIT as a premium REIT on the back of its continued efforts to provide substantial dividend per share (DPS) growth for its investors.<\/p>\n\n\n\n

Free float and holding changes<\/strong><\/p>\n\n\n\n

The transaction would result in the reduction of ALI\u2019s ownership from 54.4% to 51.1% and increase AREIT\u2019s public float from 45.5% to 48.9%. This would again put AREIT in a considerably advantageous position for more future property-for-share swaps.<\/p>\n\n\n\n

We estimate that AREIT will have the ability to issue up to 1.1-Billion shares which translates to P42.9-Billion worth of asset infusions based on LTP of 37.70 without breaching the 33% minimum required public float.<\/p>\n\n\n\n

Numbers remain healthy<\/strong><\/p>\n\n\n\n

AREIT has continued to be the prime example of how REITs should act which is through infusions that are dividend-accretive to investors. While AREIT\u2019s yield of 5.94% means that there may be better yielding REITs at this moment in time, we continue to see management\u2019s moves as a net positivefor AREIT\u2019s growth outlook. The consistent asset infusions that have translated into the aforementioned DPS growth will continue to be the case moving forward as even more infusions occur.<\/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>