Mapletree Industrial Trust: Credit Suisse keeps at Neutral with a $1.22 target price despite 9M12 DPU rising 17% yoy to 6.19¢, beating its forecasts. Notes that MIT’s DPU growth was driven by stronger occupancy and rents due to better economic conditions and the expiry of JTC rental caps, contribution from the JTC tranche 2 acquisition and lower-than-expected interest costs. The house raises its FY12-13 DPU forecasts by 1-1.5% on lower interest costs.
However, it opines MIT’s strong growth is reflected in the price. Highlights that while its valuation looks attractive at FY12 yield of 7.7% and P/B of 1.1x, this offsets its portfolio risk, which could come under pressure if global economic conditions worsen, given that its Singapore focused portfolio is highly exposed to US and European economies.
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