Mapletree Logistics Trust

Mapletree Logistics Trust: OCBC maintains Hold with $1.15 TP. MLT announced that Menlo Worldwide Logistics has signed a binding commitment to lease 48,700sqm at MLT’s Mapletree Benoi Logistics Hub (MBLH) for a period of 10 yrs. Together with Menlo’s commitment which accounts for 55% of MBLH’s NLA, house understand the property is now 75% pre-leased, with the balance in the advanced stage of negotiation. OCBC positive on this development as it reflects continued healthy leasing demand and strong interest from major third-party logistics service providers. Judging from the strong pre-commitment levels, believe that MLT will be able to meet its estimated yield-on-cost of 8-9%. In addition, expect the long lease to further enhance MLT’s already resilient lease structure. However, as house have previously factored in the redevelopment project, make no changes to forecast.