Monday, August 24, 2015

Mapletree Industrial Trust

Mapletree Industrial Trust (MINT): In a recent non-deal roadshow hosted by Deutsche, management cited that recent industrial government land sales tenders have been unattractive given short land tenures and stated that it would consider acquiring assets outside of Singapore.

The trust has started to explore regional markets such as Hong Kong, China, Vietnam, Australia and Malaysia. Assets of interest include data centers given long leases and sticky tenant profiles, and those within the sponsor’s portfolio.

MINT also stated that Australia business park and industrial assets appear interesting given freehold land tenure and stronger growth.

However, cite increasingly competitive bids for assets as a challenge. On the topic of M&A, management noted that while other industrial REITs have some attractive assets, M&A is unlikely given strategic shareholders, and limited synergies.

Deutsche maintains its Hold with TP of $1.53.

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