Friday, February 18, 2011

MapleTree Industrial Trust

MapleTree Industrial Trust: CIMB Initiate with Outperform and TP of $1.24. Note that with an 11.2% market share of SG’s flatted factory space, MIT’s $2.1b portfolio is a good proxy for Singapore’s SME space. Anticipate a 3-year DPU CAGR of 5.3% for the next 2 yrs as existing rental caps on its non-business park space are lifted by Jun….

Tip that with a under-rented portfolio, pure Singapore exposure, and large tenant base point, rental downside is limited whilst upside is conversely strong. Expect catalysts from announcements of accretive acquisitions or development projects…

Add that a healthy SG economy and manufacturing growth backed by the global electronics and semiconductor recovery are likely to boost take-up for flatted factories as firms expand to increase demand. Net new demand for flatted factories could surpass net new supply at least till 2013. The resultant rise in occupancy should lend support to rents and capital values.

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