Mapletree Industrial Trust

Mapletree Industrial Trust (MINT): Acquired a light industrial building at Changi North for an aggregate $14.1m. The four-storey building located at 2A Changi North Street 2 has a total gfa of 67,800 sf and 17 years remaining on the tenure up to 2031, with an option to extend an additional 30 years. The property will be leased to vendor, Stamping Industries, for five years with annual rental escalations and a renewal option for three additional years. Assuming the accretive acquisition is fully funded by debt, MINT's aggregate leverage is expected to increase marginally to 36.5% (+0.2 ppts). Upon completion, MINT’s portfolio will increase to 84 properties with an estimated book value of $2.9b. At $1.325, MINT trades at 1.2x P/B and 7.5% annualized 4QFY14 yield. Bloomberg consensus has 12-month TP of $1.50.