Monday, January 24, 2011

MapletreeLog - Citigroup cuts Mapletree Logistics Trust to Hold

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST
Research House: Citigroup


Citigroup downgrades Mapletree Logistics Trust (M44U.SG) to Hold from Buy; the house says MLT has been one of the best performing S-REITs in the past year, up over 30% and has outperformed the STI by close to 20%.



“While we remain positive on its outlook, we are downgrading the stock to Hold on valuation grounds.” Citi raises it target to $1.00 from $0.92 to reflect both the improved rental outlook as well as potential acquisitions. 



It says 4Q results were in line, with DPU flat on-quarter at 1.55 cents; it also says FY10 DPU amounted to 6.09 cents, in line with the house's and consensus DPU estimate of 6.1 cents. 

It also adds, high occupancy was sustained with improving tenancy in Malaysia up four percentage points to 99%. MLT is off 1.0% at $0.985.

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