Friday, February 18, 2011

CIMB starts Mapletree Industrial at outperform

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

CIMB Research has initiated coverage of Singapore’s Mapletree Industrial Trust (MAPI.SI), which owns factories and other industrial properties, at outperform with a target price of $1.24.

CIMB said it expects Mapletree Industrial’s distribution per unit to grow at 5.3% on average a year for the next two years, as the trust’s portfolio serves as a good proxy for growth in Singapore’s small and medium enterprises.

“With a under-rented portfolio, pure Singapore exposure, and large tenant base point, rental downside is limited whilst upside is conversely strong,” the brokerage said in a report.
It also expects catalysts from announcements of accretive acquisitions or development projects.
Shares of Mapletree Industrial fell 0.9% to $1.08 at around 10:15 a.m. and have dropped 0.9% since the start of the year.

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