Tuesday, October 22, 2013

Mapletree Logistics Trust : Developments to take front seat (DBSV)

Mapletree Logistics Trust
BUY S$1.085
STI : 3,192.90
Price Target : 12-Month S$ 1.16
Developments to take front seat

• Weak JPY impacting performance; DPU of 1.82 Scts in line
• Tapering acquisition assumptions; more development projects unveiled to extract value
• Maintain BUY with S$1.16 TP based on DCF; attractive yields of 6.5%-6.7%

Weak JPY affecting performance. The depreciation of the JPY against the SGD resulted in Mapletree Logistics Trust (MLT) reporting a 0.6% and 1.3% decline in gross revenue and net property income to S$77.1m and S$66.6m respectively.
Excluding the forex impact, topline would have increased by 3.6% instead. The stronger performance was largely attributable to contribution from the acquisition of Big Box in South Korea, supported by positive rental reversions of c.24%, coming mainly from its properties in Singapore/Hong Kong. Portfolio occupancy levels also improved sequentially to 98.7% (vs 98.2%). Distributable income came in 7.5% higher at S$44.5m (DPU of 1.82 Scts, 0.02 Scts from divestment gains), supported by lower interest rates of 1.9% achieved upon refinancing activities , while its JPY exposures are substantially hedged out for this financial year.

Our Views
More development projects to extract value. MLT continues to execute strongly through its development arm – the completion of its new 1m sqft ramp-up warehouse at Benoi Sector is on track to complete by 3QFY14 and will start contributing soon. In addition, the Manager has unveiled a new development project at 5B Toh Guan Road East, involving maximizing of the site’s plot ratio to 2.5x (from 0.93x), thereby creating an enlarged c600 sqft warehouse (the Manager expects to spend cS$100m on this development which we have factored in). In addition, the manager alludes to more of such value-enhancing redevelopment opportunities that can be executed upon in the medium term.

Tapering acquisition expectations. Acquisitions (3rd party and sponsor-related) are likely to remain more selective but the manager is understood to be working closely with the sponsor to tap its pipeline. Given a moderate acquisition outlook, we have tapered our acquisition assumptions to S$100m (from S$250m) over 2 years.

BUY; TP S$1.16. Despite a moderated growth outlook, we like the strategy of extracting value within its portfolio for growth which enables the portfolio to remain contemporary. Acquisitions from sponsor are likely to be re-rating catalysts for MLT. Maintain BUY, with a TP of S$1.16 based on DCF.

Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 21/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock