Mapletree Industrial Trust

Mapletree Industrial Trust: 1QFY15 results in line with consensus; Distributable income and DPU grew to $42.8m (+6.3% y/y) and 2.51¢ (+3.3%) respectively, while gross revenue rose 4.3% to $78.4m and NPI gained 6.3% to $56.7m, mainly driven by higher rental rates secured for leases across all property segments except Business Park Buildings. Portfolio passing rents remained resilient, rising 1.1% to $1.77 psf/month. Meanwhile, portfolio occupancy decreased 0.6ppts to 90.7%, partly attributed to the progressive relocation of the tenants from the Telok Blangah Cluster. MINT's portfolio weighted average lease to expiry stood at 2.6 years, with only 13% of leases due for renewal in FY14/15. Aggregate leverage ratio improved 0.8ppts to 33.6%, with average interest cost of 2.1% and debt tenor of 2.9 years. Over the next 12 months, management expects overall industrial market rents to remain stable or ease over the next six months, given the potential higher than historical average supply of factory space. Maybank-KE is cautious on industrial ware house space on impending new supply in both Singapore and Iskandar, which may affect rents and occupancy rates in the near term. At $1.45, MINT trades at 1.2x P/B and 6.9% 1Q15 annualized yield. Latest broker ratings: DB maintains Buy with $1.57 TP