Friday, January 27, 2012

Mapletree Industrial Trust

Mapletree Industrial Trust: Announced strong 3Q12 results which was ahead of grp’s initial forecast. NPI at $45.6m, +23.5% ahead of grp’s forecast and +10% qoq, while DPU at 2.05c, +14.9% ahead of grp’s forecast and flat qoq.

Strong results due to average portfolio occupancy rose to 95.1% from 94.5 qoq, while REIT had significant upward rental revisions of 26.8%, 27.5% and 31.5% for its Flatted Factories, Stack-Up/Ramp-Up Buildings and Warehouse respectively. Retention rate for qtr was also higher at 81.8% vs 79.4% qoq.

Going forward, grp remains positive on outlook and believes tt REIT is on track to exceed the Forecast estimates for FY11 as stated in its IPO prospectus. Barring any additional shocks to the global economy, expect mkt rents to stay flat in the near term.

We note that grp’s fundamentals remain strong with an acceptable leverage ratio of 39.1%, well below the 60% maximum threshold, with strong interest coverage at 6.3x. At current price, grp trades at 1.1x P/B with an annualized yield of 8.2%.

Ratings as follow:
Deutsche maintains Buy with $1.26 TP

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