{"id":331825,"date":"2025-03-07T00:44:45","date_gmt":"2025-03-06T16:44:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331825"},"modified":"2025-03-07T00:44:48","modified_gmt":"2025-03-06T16:44:48","slug":"stock-in-focus-areit-inc-areit-7-march-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-areit-inc-areit-7-march-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: AREIT Inc. (AREIT) – 7 March 2025 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 March 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 42.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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With the potential contributions of the recently acquired assets incorporated for 12 full months, we forecast net income to continue to rise by a robust 31% to Php9.6bn this year, translating to a dividend yield of 6.9%. Reiterate BUY.<\/p>\n\n\n\n

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

2024 was another year of sharp growth<\/strong><\/p>\n\n\n\n

AREIT\u2019s net income grew by 49% year-on-year (y\/y) to Php7.4 billion, significantly exceeding our expectations. It was another sharp annual boost, attributed to the full-year impact of the 2023 asset acquisitions and the fresh 4Q 2024 contributions of
Ayala Triangle Gardens Tower 2 Office Building, Greenbelt 3 and 5, Holiday Inn & Suites Makati, Seda Ayala Center Cebu, and Zambales land, all infused in late 3Q24.<\/p>\n\n\n\n

The aggregate portfolio size of AREIT soared 324% y\/y to 3.9m sqm (including the 2.9m sqm land), with an overall occupancy rate up by two percentage points to 99%, while the total value of the Assets under Management AUM) expanded by 35% to Php117bn. Dividend per share (DPS) increased by 6% y\/y to Php2.28 in FY24 and has doubled since its IPO (Initial Public Offering) year in 2020. <\/p>\n\n\n\n

More to come<\/strong><\/p>\n\n\n\n

A new wave of asset infusion, via a property-for-share swap with sponsor ALI and subsidiaries, is upcoming. The planned transaction involves eight (8) properties valued at Php21 billion (at an exchange price of Php41.50\/sh) that will bring AREIT\u2019s AUM to Php138 billion upon completion. <\/p>\n\n\n\n

AREIT will issue 505.9mn primary common shares in exchange for the following: Central Bloc One (Office), Central Bloc Two (Office), Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center (Office), Ayala Malls Centrio, and Centrio Corporate Center (Office), subject to the shareholders\u2019 approval on April 24, 2025, and the approval of the regulatory bodies thereafter.<\/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>