Tuesday, November 30, 2010


LippoMapletree(LMRT): Macquarie maintains Outperform at TP $0.64. Cites high occupancy rate and attractive yield as reasons. LMRT occupancy rates at 98% vs peer avg of 81% and expected to be stable at 96%. The trust DPU remains attractive at 8.6% and is expected btwn 7-8% in nxt 3 yrs...

Drivers of growth are LMRT’s plans to double asset size from S$1b to S$2 with target assets req to have occupancy rates of 70-80% and growth in Indonesia’s economy and stronger rupiah. Trades at 13.3x 2011e P/E in line with sector avg. Other retail focused REITs with 2010 yields are, Starhill 6.4%, CMT 5.1% and FCOT 6.4%.

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