MINT

MINT: 1QFYMar13 results ahead. DPU was 2.26cts, +14% yoy, +1.8% qoq, on lower than expected operating costs. Revenue and NPI rose 21% yoy and 26% yoy respectively, supported by stable occupancy (94.9%), positive rental revisions and the contribution from Tranche 2 of JTC’s portfolio. Rent revisions continue to be strong, rising 9.3% to 31.7% for business park space, flatted factories, warehouses, and stack up/ ramp up buildings. Overall, avg portfolio passing rents were flat at $1.56psf. Mgt believes rents for industrial will remain resilient near term and will continue to focus on organic growth. AEI’s remain on track with 50% of new space at Woodlands Central Cluster pre-committed, and completion slated for 2Q13. Meanwhile, its Toa Payoh North 1 Cluster is slated for completion in 4Q13, and its first BTS project for Kulicke & Soffa is scheduled to complete in 2H13. Gearing remained flat at 37.7%, while avg funding cost increased from 2.3% to 2.5%. Deutsche notes valuations look attractive with FY13e yields of 6.9% implying a generous 557bps spread over the 10yr bond. Reiterates Buy with TP $1.26. CIMB downgrades to Neutral from Outperform but raises TP to $1.31 from $1.24.