“We are rerating AREIT back to a Buy, taking into consideration the beginning of the [Bangko Sentral ng Pilipinas’] rate cut cycle, alongside future dividend-accretive asset infusions,” said Joey Cipres, AP Securities research analyst.
“We recommend a buy on any dips for the stock,” he added.
AP Securities has a P43.64 per share price target for AREIT.
Ayala Land recently cut its stake in AREIT through the sale of 75 million shares at P36.20 per share.
“The transaction will lower ALI’s ownership in AREIT from 54.4 percent to 51.1 percent, increasing the public float from 45.5 percent to 48.9 percent,” Cipres said.
A larger float allows Ayala Land to continue injecting assets into AREIT while maintaining a diversified public ownership profile for the latter.
“Despite a yield of 5.94 percent, which is lower than some other REITs, AREIT’s focus on dividend-accretive asset infusions continues to strengthen its growth prospects,” Cipres said.
