Mapletree Industrial Trust

Mapletree Industrial Trust: StanChart reiterates Outperform, upgrades TP by 20% to $1.40. Says FY10 results outperformed, and MINT now provides the highest 2011E DPU yield of 8% among the large-cap SReits.
Sees short term catalysts in, i) removal of rental caps, and ii) conversion to e-commerce use…

Expects the imminent expiry of JTC rental caps in July to provide DPU growth of 10% in 2011 as an est 70% of its portfolio is ~15% under-rented. Notes the market has been sceptical that rents could be marked to market, but points out that recent results exceeded Street expectations on both rents and occupancy rates achieved.
Also notes the conversion to e-commerce could double rentals as its newly converted 30k sf of NLA at Redhill commands rents of $3.30psfpm, vs $1.60 previously…

Believes MINT’s valuation is conservative at $181 psf NLA, and should be valued closer to $222 psf NLA based on current raw land prices. This would raise MIT’s RNAV to $1.42/sh, and lower current P/NAV from 1.1x to just 0.8x.