MapletreeInd - Mapletree Industrial Trust started at Buy by Citi

Stock Name: MapletreeInd
Company Name: MAPLETREE INDUSTRIAL TRUST
Research House: Citigroup

Citigroup starts Mapletree Industrial Trust (ME8U.SG) at Buy with $1.21 target price.



Expects strong growth potential for Singapore-focused REIT’s properties given favorable lease expiry profile, cessation of annual 5.5% rental cap in June next year.

Tips 3-year organic earnings CAGR of 13% vs 0%-6% for other industrial REITs; “rental rates across business parks, flatted factories, and warehouses already appear to have bottomed and are beginning to show signs of improvement. With relatively low supply compared to expected demand across industrial properties, we expect occupancies and rentals for flatted factories to move towards their 2008 peak.”



Cites highly diversified tenant base of more than 1,500 multinational corporations, local companies, plus over 2,200 leases as key strengths. REIT flat at $1.10.



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