{"id":331615,"date":"2025-02-20T23:59:00","date_gmt":"2025-02-20T15:59:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331615"},"modified":"2025-02-21T00:24:53","modified_gmt":"2025-02-20T16:24:53","slug":"stock-in-focus-vistareit-inc-vreit-20-feb-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-vistareit-inc-vreit-20-feb-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: VistaREIT Inc. (VREIT) – 20 Feb 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>VREIT<\/td><\/tr>
Company Name<\/strong><\/td>VistaREIT Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>20 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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VREIT has consistently remained steadfast, as seen in their high dividend yields and occupancy rates, as well as a rekindled market interest in REITs, which could help propel the firm\u2019s profitability further. Therefore, we are recommending a BUY with a Target Price of P2.70.<\/p>\n\n\n\n

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

VistaREIT (VREIT) saw a sharp decline in the first 9 months (9M) of 2024, with Net I Income (NI) falling by -92.5% year-on-year (y\/y) to P1048.2 million. Key factors behind this decrease were primarily attributed to the recognition of higher straight-line adjustment, as well as lower contributions from rental income and operating income.<\/p>\n\n\n\n

Despite rental income decreasing by -11.4% y\/y to P1908.6 million in 9M 2024, VREIT continues to maintain high occupancy levels, with its end-September occupancy rate at 97%. Excluding straight-line adjustment, rental income increased by +6.11% y\/y to P1,343.3 million. They\u2019re targeting the end of 2027 to double their GFA, which is part of their 3-year investment strategy.<\/p>\n\n\n\n

VREIT\u2019s portfolio is composed of 256,404 sq.m. with an appraisal value of P25.3 billion, and consists of 10 community malls and two office buildings. The firm plans to focus on the diversification of its portfolio by investing in VLL\u2019s other commercial real estate properties.<\/p>\n\n\n\n

The property segment continues to exhibit fluctuating demand, as seen by negative net-takeups in several residential areas, as well as increased vacancy levels in offices due to the recent POGO exodus.<\/p>\n\n\n\n

Additional inflation concerns have also been brought about by Trump\u2019s tariff policies, especially with the recent target on construction materials such as steel and aluminium.<\/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>