MapletreeInd - Mapletree Industrial Trust started at Neutral by Goldman Sachs

Stock Name: MapletreeInd
Company Name: MAPLETREE INDUSTRIAL TRUST
Research House: Golman Sachs

Goldman Sachs starts Mapletree Industrial Trust (ME8U.SG) at Neutral with $1.12 target price. Expects Singapore-focused REIT to deliver sector-leading organic DPU CAGR of 9.5% over FY10-12, but says this already reflected in current price. Says MIT will benefit from Singapore’s stable economic growth, with 44% of its income derived from multinational companies, listed firms, 56% from SMEs, which form backbone of economy “and have shown resilience in the past as a source of rental income.” Says portfolio under-rented, at average 21% below market average, which offers ample opportunities for organic growth over FY10-12. REIT flat at $1.10.