AIMS AMP Capital

AIMS AMP Capital: OSK DMG has a rpt update on the completion of Phase 2 of 20 Gul Way, expects mgmt to announce its plan for Phase 3 soon. Assuming a successful execution of Phase 3 in 13 months, OSK expect 2015 DPU to jump by 12.3%. AIMS recently announced that URA has approved in principle its application to re-zone the plot ratio at 20 Gul Way from the existing 1.4x to 2.0x. This allows the REIT to develop a further 497,000 sf of gfa at the property. Based on the speculated scenario of the successful execution of Phase 3 of 20 Gul Way, OSK project a DPU of 13.3¢ (+15.3% y/y) in 2015 (from 11.9¢ previously). In addition, with c.50% of its under-utilized plot ratio available for redevelopment, house expect the REIT to announce more upcoming projects in the future. OSK reiterates BUY with TP of $2.10, representing a forecast FY14 dividend yield of 5.3% and a potential upside of 20.7%.