Mapletree Logistics Trust

Mapletree Logistics Trust: Annouced 2Q12 results which were in-line. Rev and NPI rose 13% and 15% respectively, driven by the contribution from acquisitions in Japan, Korea and M’sia as well as firm organic growth, which underpinned the 1.2% DPU increase (3% ex divestment gain in 3QFY12). Underlying trends were stable, with portfolio occupancy improving from 99% to 99.2% and positive rent reversions of 8% (vs. 10% last quarter). Gearing is unchanged at 37% with avg debt duration at 4.3 years. Mgt has introduced a dividend reinvestment plan which will apply to the 2Q distribution. Mgmt is currently pursuing a BTS development in Japan with a major third party logistics player. For the balance of FY12/13,4.2% of leases are due for renewal. While tenants remain generally cautious on expansion, overall leasing demand has been stable, underpinned by domestic consumption and the limited new supply of quality facilities. Ratings as follow: Deutsche maintains Buy with $1.24 TP