Viva Industrial Trust

Viva Industrial Trust (VIT): OCBC initiates with BUY
- OCBC projects VIT’s distributable income to increase by 27%/6.2% in FY16/FY17, with DPU expected to decrease 1.2% to 6.916¢ in FY16, before increasing 6.9% to 7.392¢ in FY17.
- OCBC values VIT using the DDM and derive a TP of $0.75.
- Based on $0.705, VIT is trading at a forward FY16F DPU yield of 9.8% and a FY17F yield of 10.5%.