Wednesday, June 8, 2011

Mapletree Ind Trust

Mapletree Ind Trust: JP Morgan initiate with O/w call and TP $1.30. Note that REIT has stable yield with steady growth and current portfolio is well diversified with a reasonably strong occupancy rate of 93%, providing the trust with a stable income stream. Expiry of rental cap in Jun11 and under-renting status of portfolio should also help to ensure the steady NPI growth……

Estimate portfolio to generate a FY12E NPI yield of 7.2% with a three-year NPI CAGR of 5%. Inorganic growth the likely near-term share price catalyst, giving it an additional near-term DPU growth kicker. REIT currently trades at 6.9% /7.2% CY11E / CY12E yield.

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