|MAYBANK KIM ENG||
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.
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.
|CGS CIMB||UOB KAYHIAN|
Mapletree North Asia Commercial Trust
■ 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.
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.
Check out our compilation of Target Prices