Mapletree Industrial Trust

Mapletree Industrial Trust: 2QFY15 DPU increased 5.3% y/y to 2.6¢, while distributable income rose 10.4% to $45.4m. Revenue climbed 6.2% to $77.9m, while NPI increased 4.1% to $56.2m, mainly due to positive rental reversions and new contribution from completed development projects. Occupancy stood at 91.5% with WALE of 2.7 years. Aggregate leverage stood at 33.1%. Deutsche notes that a sustained take-up of the DRP (~$70-80m/year) gives MINT headroom for AEIs and acquisitions, which could drive the next leg of growth. The BTS Equinix data-centre is 100% committed and expected to be completed in 1QCY15. The lease for Equinix is for 20 years with renewal options for two additional 5-year terms, with embedded annual rental escalation. Meanwhile, the BTS development for Hewlett-Packard is to commence from 2HCY14. BVPS of $1.20 translates to 1.2x P/B. Annualized 2QFY15 yield is 7.3%. Latest broker ratings: Deutsche maintains Buy with TP of $1.48 CIMB maintains Add with TP of $1.64