MINT

MINT: Has a sizeable portfolio which is focused towards flatted factories and multi-tenanted buildings. Deutsche notes that its sizeable tenant base over 2,000 is dominated by SMEs. Recent anchor tenant rules, which effectively reduce the amount of available space for non-anchor tenants, could potentially drive rentals for SMEs higher, which would be positive for MINT, Deutsche views. DPU is forecasted to be flat for FY16-17 as Telok Blangah undergoes the AEI exercise for HP. While the domestic acquisition environment remains challenging, offshore acquisitions in countries where the sponsor has presence could help spur the next leg of growth. Net gearing remains comfortable at ~36%, and a firm take-up for its DRP gives MINT ample headroom for AEIs and acquisitions. Deutsche maintains Buy with TP of $1.48.