Thursday, April 14, 2011

Mapletree Logistics Trust rated 'buy' by OCBC

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

OCBC Investment Research in an Apr 12 research report says: "Mapletree Logistics Trust (MLT) recently announced that a local IT solutions company and CK Holdings have exercised their purchase options on April 8 for two MLT properties - 9 and 39 Tampines Street 92 at a purchase consideration of $12.8 million and $14.7 million, respectively.

"A total net disposal gain of $2.1 million is expected from the divestment. MLT expects the disposal gain to result in a one-time increase in FY11 DPU by 0.07-0.09 cents. MLT has a proven track record of executing a virtuous cycle of accretive acquisitions and competitive fund-raising.

"We take delight that it is also starting to recycle proceeds into better-yielding assets. However, we remain wary of Japan's woes and increased the country risk premium to 75 bp for its Japan assets in our valuation. RNAV-derived fair value of $1.01 (previous $1.03). MAINTAIN BUY."

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