Mapletree Log

Mapletree Log: Stable results in-line with consensus. 4Q DPU at 1.7 compared to 1.55 prev year same period and 1.69 last quarter. Distributable income for 4Q is at $41.3m +12.2% yoy, flat qoq. 4Q Rev at $71.9m +17.8% yoy with net profit at $47.2m -9.8% yoy

Rev growth mainly due to contributions from the 4 properties acquired in FY 2011, higher revenue from existing assets (overall positive rental reversions, lower vacancies and conversion of some single-tenanted properties into multi-tenanted properties. The conversion also resulted partly in higher property expenses. Mgmt sees return of more attractive acquisitions.

Gearing currently unchanged at 41.4% and will focus on yield+ growth strategy with AEI initiatives and acquisitions. There is approx $300m worth of properties in their sponsor’s pipeline with Mapletree Log having the first right of refusal which might result in equity raising for acquisitions. Occupancy still high at 98.8% though slightly lower than the 99.0% in Sep end.

Expected yield for FY11 is approx 7.6%, note that yr end was changed to Mar 2012.

Houses that maintain Buy include DB (TP$1.01), BNP (TP$1.00) and Stanchart (TP$0.94).