Singapore Stock Market News

Mapletree Industrial Trust - Fairly valued

StockFanatic
Publish date: Wed, 22 Apr 2015, 10:49 AM
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Mapletree Industrial Trust's (MIT) 4QFY15 results were in line with our expectations, as both FY15 revenue and DPU accounted for 26% of our full-year forecasts. Distributable income rose 8.9% yoy in FY15, driven by both organic and inorganic growth. Given that passing rent is close to market spot rent at this juncture and the next phase of growth (BTS project for HP) is only expected to materialise in 2H16, we downgrade MIT from Add to Hold. However, our DDM-based target price of S$1.66 (discount rate: 8.7%) is unchanged. Any sizeable acquisitions/redevelopment projects could be re-rating catalysts.
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