by winston » Mon Jan 21, 2013 10:04 am
Mapletree Logistics Trust- 3QFY13: Stable and defensive logistics pick.
(MLT SP/BUY/S$1.16/Target: S$1.38)
FY13F DPU Yld (%): 6.0
FY14F DPU Yld (%): 6.3
Results marginally below expectations. Mapletree Logistics Trust (MLT) reported 3QFY13 distributable income of S$41.8m (+1.1% yoy, +0.9% qoq) and DPU of 1.72 S cents (+1.2% yoy, +0.6% qoq).
9MFY13 DPU is marginally below expectations, accounting for 72.3% of our full-year estimate of 7.10 S cents.
Acquisition of Wuxi Logistics Park from sponsor. The acquisition of Wuxi Logistics Park in China for Rmb116m (S$22.8m), announced in Nov 12, was completed in Jan 13.
The average independent valuation of the property, which has a GFA of 45,000sqm, was Rmb119m. At an initial property yield of 8%, the acquisition is accretive to MLT’s China logistics portfolio which has an implied property yield of 6.0%.
The acquisition is fully funded by debt and is leased to reputable companies, including Wuxi Hi-tech, Kerry Logistics, Fiege International Freight Forwarder and Konoike Logistics. This is the third property MLT acquired from its sponsor’s development pipeline.
Maintain BUY and target price of S$1.38, based on the dividend discount model (required rate of return: 6.9%, terminal growth: 2.0%).
Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"