Mapletree Industrial Trust (MIT) reported 4QFY16 revenue of S$84.0m, representing an increase of 5.8% on a YoY basis. DPU grew 6.0% to 2.81 S cents and came in within our expectations. For FY16, MIT’s gross revenue rose 5.6% to S$331.6m, and this constituted 100.3% of our full-year forecast. DPU was higher by 6.9% to 11.15 S cents and this was 1.4% above our projection.

Overall portfolio occupancy was stable at 94.6% (-0.1 ppt QoQ), as at 31 Mar 2016, while its portfolio valuation increased 3.9% to S$3.56b, with a slight 25 bps compression in cap rates for its Business Park Buildings. In terms of rental reversions for renewal leases, MIT achieved positive rental uplifts in 4QFY16 for all its segments ranging from 2.1% to 2.8%, with the exception of HiTech Buildings (-4.9%).

We will provide more details after the analyst briefing. We maintain our HOLD rating on MIT but will review our S$1.48 fair value estimate.

Source: OCBC Research - 26 Apr 2016