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Mapletree Commercial Trust - Growth engine sputters

StockFanatic
Publish date: Fri, 29 Nov 2013, 02:09 PM
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MCT's portfolio growth continues to be underpinned by positive rental reversions in VivoCity. However, as the current market sentiment is not conducive for major AEIs and M&A, we expect MCT's mid-term growth to be limited to organic growth only.

With the recent c.4% correction in share price, coupled with i) a resilient portfolio, ii) only 1.6% of retail leases up for renewal in FY14 and 16% in FY15, and iii) a high portfolio occupancy rate of 98.9%, we have upgraded Mapletree Commercial Trust (MCT) to a Neutral rating. We maintain our DDM-based (discount rate: 7.9%) target price of S$1.28.
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