Tuesday, January 21, 2014

Mapletree Logistics Trust - First acquisition of the year (CIMB)

Mapletree Logistics Trust
Current S$1.05
Target S$1.11
First acquisition of the year

▊ Amid a tight acquisition market, MLT recently announced its proposed acquisition of an industrial warehouse in Iskandar Malaysia – its fourth property in this area upon completion. Although we are positive on the deal, the impact on earnings is expected to be limited. We maintain our Hold rating and DDM-based (discount rate: 8.1%) target price.

 
What Happened
MLT recently announced its proposed acquisition of an industrial warehouse in Iskandar Malaysia from Mapletree Industrial Fund for RM88.5m (S$34.3m). This property comprises seven blocks of single- and double-storey industrial warehouses and one office block with a total GFA of 63,750 sq m. At the moment, the property is leased to a subsidiary of LCTH Corporation Bhd on a 12-year triple net lease, expiring in May 2020. At RM88.5m, this acquisition is expected to generate an initial NPI yield of 8.4% and shall be MLT’s fourth asset in Iskandar. Management highlighted that this acquisition will be funded by debt and is expected to be completed by 3QFY14/15.  
 
What We Think
In view of the tight acquisition market in Singapore, we view this deal positively as MLT continues to receive support from its sponsor. The acquisition price is lower than the valued price of RM91m-95.4m, while the initial yield of 8.4% is higher than the implied property yield of 7.1% for MLT’s existing Malaysian portfolio. Based on our estimates, debt-funding for this acquisition is expected to bring about growth in dividend of 0.085 Sct/share (+1.2% from FY13 DPU) on a pro-forma basis. Upon completion, MLT’s leverage is expected to rise to a manageable 34.9%.  
 
What You Should Do
This acquisition forms part of our estimated debt-funded acquisition target of S$150m for FY14. Given the size of the deal, we expect limited impact on FY14/15 earnings. We continue to recommend a Hold as we await for more meaningful catalysts.  


Source/Extract/Excerpts/来源/转贴/摘录: CIMB-Research,
Publish date: 13/01/14

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)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
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,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock