| MAYBANK KIM ENG |
CGS CIMB |
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Mapletree Logistics Trust (MLT SP) Stable Qtr, Limited Visibility
Results in line, stay at HOLD MLT’s logistics assets stabilised further in 3Q20 as DPU rose 2.1% YoY on its larger AUM with the addition of seven high-specs assets and a China divestment as of end-2019. However, we see limited near-term demand growth visibility (except for M’sia, Vietnam) on macro uncertainties. We fine-tuned DPU estimates after its Dec-2019 SGD250m equity fundraising, which has bolstered its balance sheet for further deals, and our TP rises to SGD1.75 (COE: 6.7%, LTG: 2.0%). Our top industrial-sector pick remains the business-park-focused AREIT (AREIT SP, BUY, TP SGD3.35), which trades at higher 5.6% yields with stronger DPU growth prospects and the balance sheet for acquisitions. Stay at HOLD.
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Keppel DC REIT Acquisition growth continuing
■ 4Q/FY19 DPU of 1.83/7.61 Scts (-1.1%/+4.0% yoy) was in line at 23%/97% of our FY19 estimate due to the SGP4 and DC1 acquisitions in 2019. ■ KDCREIT acquired a data centre in Kelsterbach, Germany for €81.8m which would be leased on a triple-net basis until end-2025. ■ Maintain our Hold call with a higher DDM-based TP of S$2.03 as we include its latest acquisitions.
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| CGS CIMB | UOB KAYHIAN |
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Mapletree North Asia Commercial Trust Earlier-than-expected recovery
■ Weaker portfolio performance dragged 3QFY3/20 bottomline. ■ Lesser than our earlier projected drag from FW as at 3QFY3/20. ■ Maintain Add rating with a higher DDM-based TP of S$1.31.
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REITs – Singapore 3QFY20: MLT (In-line), 4Q19: CCT (In-line)
MLT reported healthy growth in DPU of 2.1% yoy. Portfolio occupancy improved 0.2ppt qoq to 97.7%. Rental reversion moderated from 1.8% in 1HFY19 to 1.2% in 3QFY19. CCT reported healthy growth in DPU of 2.7% yoy. It maintained stable portfolio occupancy at 98% while achieving positive rental reversions for Six Battery Road, CapitaGreen and Raffles City Tower. Maintain HOLD on MLT and maintain BUY on CCT (Target: S$2.30). Maintain OVERWEIGHT on the sector.
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