Mapletre Greater China Commercial Trust

Mapletre Greater China Commercial Trust (MGCCT): SCB initiates coverage on Mapletree Greater China Commercial Trust (MAGIC) with an Outperform rating and price target of $1.14. House expects positive Beijing rental reversions and robust HK retail sales to drive NPI growth of 6.7% p.a. over FY14-15. House note that MAGIC is the 5th largest SREIT by free-float market cap and the seventh in HK and Singapore. Expect MAGIC to provide 8.0% DPU CAGR over FY13-15, higher than the retail SREIT average of 3.3% and SREIT average of 2.2%. See strong 6.7% p.a. growth in net property income (NPI) over FY14-15 from a combination of 5.2% p.a. growth from Festival Walk in HK and 10.5% p.a. growth from Gateway Plaza in Beijing. Gateway Plaza is now 30% under-rented in a market with a 3% vacancy rate. The REIT offers concentrated exposure to HK retail property, an attractive 5.0% FY13E DPU yield, and 8.0% DPU CAGR, the highest among large-cap SREITs. Overall, see MGCCT as one of house top SREIT picks.