MLT

MLT: (S$1.055) 4QFY16 DPU in line even as leasing risk escalates
- FY16 DPU of 7.38 cents (-1.6% y/y) within expectations
- 4QFY16 revenue and NPI grew on contributions from acquisitions and higher contributions from its Chinese portfolio, partially offset by multi-tenanted building conversions, absence of contributions from 3 SG properties as well as weaker MYR
- Portfolio occupancy dipped to 96.2% with FY16 rental reversion of 4%.
- Only managed to renew 91% of expiries with 61,000 sqm leases lapsing
- Significant headwinds due to rising supply of warehouse space and lacklustre economic growth
- Trading at 7% yield and 1.03x P/B after recent price gains. Notable downgrades from OCBC and CIMB.