Mapletree Commercial Trust

Mapletree Commercial Trust: Strong set of results ahead of estimates, with the Grp posting DPU of 1.737c for 4Q13, beating its forecast of 1.449c by 19.9%. Strong results were on back of a 21.6% jump in rev to $60.7m, and a 23.4% jump in NPI to $44.2m. For the full year, DPU rose 23.1% to 6.487c, beating its forecast by 19.7%. Strong set of results was driven by strong reversions in VivoCity (33.1%) and PSAB (44.3%), contribution from Alexndar Retail Centre (ARC), rent step-up in Merrill Lynch Harbour Front (MLHF) and the recently acquired Mapletree Anson. Apart from ARC, committed occupancy was sustained at 100% for all assets with all leases expiring in FY12/13 renewed/ re-let. Leasing at ARC has been relatively slow with commitments rising from 80.4% to 81.9%. Gearing rose to 40.9% post-Anson and MCT has diversified its funding sources and lengthened debt maturity to 3.5 yrs after the recent 8-year notes with 74.5% of debt fixed At current price, grp trades at 1.3x P/B and at a forward yield of 4.8%. CIMB maintains Neutral with $1.47 TP Deutsche maintains Hold with $1.46 TP HSBC maintains neutral with $1.45 TP