Mapletree Industrial Trust

Mapletree Industrial Trust (MINT): 2QFYMar12 results in-line.
DPU at 2.05cts, +3.5%qoq.
Revenue and NPI rose 8.0% and 8.6%qoq rptvly, driven by contributions from the newly acquired JTC portfolio and also positive rental reversions.

For the 4th consecutive quarter since listing, MINT’s portfolio has achieved higher avg occupancy and higher avg passing rents although retention ratio was lower at
79.4% vs. 88.7% last quarter.
At end-Sep ‘11, portfolio occupancy was 94.5% (1QFY12: 94.3%, 4QFY11: 93.2%, 3QFY11: 92.3%) while avg passing rents was $1.54 psf pm (1QFY12: $1.52psf, 4QFY11: $1.49psf,
3QFY11: $1.45psf).

NPI from the flatted factories grew 15%qoq, helped by the maiden contribution from the newly acquired JTC flatted factories portfolio. New leases were signed at $1.82psf compared to the passing rental of $1.26psf prior to renewal. MINT’s portfolio recorded strong positive rental revision across all segments, with business park space average gross rental rising 19% while its flatted factories, stack-up/ramp up and warehouses saw rental growth of 30-36%.

Citi keeps at Buy, raises TP to $1.34 (from $1.30).
StanChart keeps at Outperform with TP $1.30. Notes the Reit has a DPU yield of 7.5% for FY12E, the highest amongst S-Reits with free float >$1b.