Mapletree Logistics Trust

Mapletree Logistics Trust: Announced FY11/12 results which was in-line with expectations. 5Q FY11/12 NPI at $61.4m, +12.3% yoy and flat qoq, while DPU at 1.7c, +9.7% yoy and flat qoq. Result brings 15 mths NPI to $293.6m, +52.1% yoy while DPU at 8.2c, +35.3% yoy. Rev and income growth were mainly driven by contribution from the four properties acquired in the past 15 mths and a 5.6% organic growth from the existing portfolio. The DPU included the third and final payout of the net gain from divestment of two properties, amounting to 0.03c. Going forward, grp remains upbeat on prospects and will continue to focus on optimising yield through active asset and lease mgt, and pursue strategic investment opportunities. However caution that the strong organic growth and positive rental reversion experienced in FY11/12 are likely to moderate going forward although occupancy rate is expected to remain stable. Overall, we note that fundamentals remain strong, with leverage ratio at 35.2%, while portfolio occupancy remained high at 98.7% and a Wale of 6 yrs. At current price, grp trades at with yield at 7.4% and at 1.07x P/B vs Industrial REITs average of 8% and 1.5x P/B. Ratings as follow: Deutsche maintains Buy with $.05 TP UOB Kay Hian maintains Buy with $1.05 TP