Mapletree Industrial Trust (MIT) reported a decent set of 4QFY15 results which was in-line with our expectations. Gross revenue and DPU both grew 5.6% YoY to S$79.4m and 2.65 S cents, respectively. For FY15, MIT’s gross revenue rose 4.9% to S$313.9m and in line with our projection.

DPU of 10.43 S cents represented growth of 5.1% and was 1.9% ahead of our projection. This translated into a distribution yield of 6.5%, based on its last closing price of S$1.61.

Management secured positive rental reversions for its renewal leases in FY15, although portfolio occupancy inched down from 90.8% (as at 31 Dec 2014) to 90.2% as at end FY15. MIT’s balance sheet remains healthy, with an aggregate leverage ratio of 30.6%, while its interest rate hedge ratio now stands at 87%. We will provide more details after the analyst briefing.

Maintain HOLD on MIT, but we will be reviewing our fair value estimate of S$1.43.

Source: OCBC Research - 22 Apr 2015