Wednesday, March 14, 2012

MapleTree Log Trust

MapleTree Log Trust: Macquarie maintains O/p, TP $1.13, enlarging Japanese footprint.
MLT announced the acquisition of 7 Japanese properties for $291.8m. House Lower FY13E-14E DPU by circa 1% and TP by 0.5% to account for the impact of the new acquisitions, offset by the cost of the perpetual securities.

Overall, tip MLT to offer DPU growth of 5.1% in FY12E, driven mainly by organic growth and new acquisitions. Valuations remain undemanding, with a total return of 28.8% (upside: 21.9% and yield: 6.9%).

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