Mapletree Industrial Trust

Mapletree Industrial Trust (MINT): MINT is one of the largest industrial landlords in Singapore with majority of its portfolio skewed to flatted factories. BOA-ML initiates at Buy with TP $1.30. Says MINT is its key pick for a defensive yield play in the REIT sector. Notes MINT's FY13 yield of 7.8% is attractive, while it trades at 1.1X P/NAV, below its closest peer A-REIT's 1.3X historical average; Adds, MINT offers a higher yield and earnings growth profile vs its larger cap industrial peers, A-REIT and MLT , despite trading at similar P/NAV levels. The house notes 23%-30% of MINT's leases are due for expiry each year for the next three years, viewing it as likely to drive earnings growth as the majority were previously subject to rental caps. Expects average FY13-15 DPU growth of 6%. The stock is up 2.6% at $1.17