Mapletree Industrial Trust

Mapletree Industrial Trust: 4Q12 results in-line with expectations. 4Q12 distributable income of $35.8m (+26.4% yoy, +1.7% qoq) and a DPU of 2.22c (+15.0% yoy, +2.8% qoq). Result brings FY12 DPU to 8.41c. Results were driven by the acquisition of the JTC portfolio of flatted factories and higher rental reversions. Average portfolio passing rents increased 1% qoq to $1.55 psf pm. There were significantly higher rental reversions ranging from 15% to 30% for flatted factories, stack-up/ ramp-up buildings and warehouse space. Occupancy rate moderated slightly to 94.9% in 4Q12 from 95.1% in 3Q12 due to lower occupancies in business park buildings (91.3% in 4Q12 vs 94.4% previously). The retention rate for existing tenants, at 76% was down from 82% in the previous qtr, but remains robust. This was largely due to a low retention rate of 10% for business park space, while retention for other industrial space remained high at 80% and above. Gearing moderated to 37.8% from 39.1% in the previous qtr due to the higher portfolio valuation. Overall, mgt confident on prospects citing positive outlook for the factory and warehousing sector due to high islandwide occupancies (93-94%). Factory and warehouse rents remained stable in 1Q12, with rentals for ground floor factory and warehouses unchanged qoq at $1.90 psf and $1.75 psf respectively, according to CBRE. Ratings as follow: Deutsche maintains Buy with $1.26 TP Goldman Sachs maintains Buy with $1.26 TP