Aims Amp Industrial Trust

Aims Amp Industrial Trust (AAREIT): Religare initiates at Buy with TP $1.80. Likes the counter for its high DPU growth (5.2% FY12-15e CAGR), conservative mgt and high potential for acquisitions and redevts over the next 12-24 mths. Notes AAREIT provides 7.2% FY142 yield vs industrial peers at 6.0%. AAREIT owns 25 industrial properties spread across Singapore, with total NLA of 481.2k sm, valued at ~$1b. The co has a well diversified portfolio spread across 4 segments – warehousing and logistics (48% of NPI), Ramp Ups (19%) , Business Parks (18%) and Mnftg (15%), with robust avg portfolio occupancy rate of 98.5%. The house expects DPU to pick up from the this quarter, being the first full quarter contribution of its first redevt asset (phase 1 of GulWay). Expects future growth to be supported by completions of 2 more assets, one each in Fy14 and Fy15.