{"id":332644,"date":"2025-05-29T01:15:25","date_gmt":"2025-05-28T17:15:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332644"},"modified":"2025-05-29T01:15:30","modified_gmt":"2025-05-28T17:15:30","slug":"stock-in-focus-areit-inc-areit-29-may-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-areit-inc-areit-29-may-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: AREIT Inc. (AREIT) – 29 May 2025 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 May 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 45.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, we maintain our BUY recommendation for AREIT, with a Target Price of P46.00\/share.<\/p>\n\n\n\n

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

Higher contributions from properties acquired in the 3rd quarter (3Q) 2024 boosted AREIT, Inc. (AREIT)\u2019s 1st quarter (1Q) 2025 Net Income (NI) up by +42.4% year-on-year (y\/y) to P2.05 billion. Consolidated revenues also rose by +38% y\/y to P2.92 billion, fueled by increased rental income and dues. Key drivers behind this growth consisted of 2024 newly added assets from 2024, such as the Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 mall, Holiday Inn & Suites Makati, Seda Ayala Center Cebu, and Industrial land in Zambales.<\/p>\n\n\n\n

Last April 24, AREIT secured approval for the property-for-share-swap transaction with ALI and its subsidiaries, Accendo Commercial Corp, Cagayan de Oro Gateway Corp, and Central Bloc Hotel Ventures, Inc. The transaction, which is valued at P21 billion, involves 8 prime commercial assets in Visayas and Mindanao. These consist of the following: Central Bloc Corporate Center 1 and 2, Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center in Davao, Ayala Malls Centrio and Centrio Corporate Center in Cagayan de Oro. Following this, AREIT\u2019s AUM is estimated to buoy to P138bn.<\/p>\n\n\n\n

Despite negative net take-ups seen in several key business districts, AREIT\u2019s overall occupancy rate remains impressively high at 99%, with a WALE of 20.5 years (3.7 years for offices), as leasing demand continues to remain resilient in areas such as Makati CBD, BGC, and Ortigas.<\/p>\n\n\n\n

Meanwhile, the local market continues to track the latest US tariff developments, as the implementation of 17% tariffs may dampen demand for office spaces. However, the impact could be partially offset by AREIT\u2019s steady stream of recurring income, as well as easing inflation.<\/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>