MLT

MLT: FY13 DPU of S¢6.86 (+2.5% YoY) was in line with estimates. Growth was driven by the six assets acquired in the past 12M—three in Korea, two in Malaysia and one in China. Portfolio occupancy remained high but dipped 0.7 pp to 98.2% due to Korea, which saw occupancy falling 4.3 ppt to 95.7%; although average positive rental reversions were up 14% for the portfolio in 4Q13 (21% if excluding impact of conversions from STB to MTB). Balance sheet remains healthy with debt duration of 3.9 years, with gearing at 34.1%. Going forward, mgt focus will be on acquisitions in China, South Korea, Malaysia and SG, with grp having a $750m debt headroom for future acquisitions. At current price, grp trades at 1.4x P/B and 5.2% yield. Ratings as follow: CS maintains O/p with $1.41 TP UOB Kay Hian maintains Buy with $1.38 TP Detusche downgrades to Hold from Buy with $1.35 TP, citing excessive valuations.