Mapletree Commercial Trust

Mapletree Commercial Trust: Announced 1Q13 results which was in-line. 1Q13 DPU of 1.537c was in line with street’s expectations but beat prospectus forecast by 21% due to lower interest cost, stronger rent reversion at VivoCity and earlier-than expected opening of ARC. Mgt signed 109 leases, bulk of which were at VivoCity (213 expiring this year, mostly specialty) which saw 40% reversion for offices and 37% reversion for retail. Portfolio occupancy was up 1.5ppt QoQ to 96.1% led by ARC and PSAB. Going forward, MCT could be looking to buy Mapletree Business City this year as pre-leasing has hit 91%. If this happens, there could be 20% equity issuance (less, if there is PERPs), which historically provides a good entry opportunity. At current price, grp trades at 1.1x P/B and an estimated 6% yield. Ratings as follow: CIMB Maintains Out perform with $1.14 TP Credit Suisse maintains OutPerform with $1.20 TP Deutsche maintains Buy with $1.04 TP