Company Name: MAPLETREE LOGISTICS TRUST
| Research House: RBS | Price Call: BUY | Target Price: 0.91 |
RBS has downgraded Singapore’s Mapletree Logistics Trust (MAPL.SI), which owns warehouses and other logistics properties, to hold from buy and cut its target price to $0.91 from $1.14.
Capital values for logistics properties in Singapore are at their highest levels since 1997, which will make it hard for Mapletree Logistics to make accretive acquisitions in Singapore, RBS said.
“In the current acquisition climate, we expect Mapletree Logistics to find it tough to achieve significant income growth. We believe its high gearing of 41 percent has cast an overhang on the stock with the market appearing to be factoring in an upcoming equity fund-raising exercise,” RBS said in a report.
The brokerage has also lowered its rental growth forecasts for industrial properties in 2011-2013 to 1-5% from 5-10%.
At 11:05 a.m., shares of Mapletree Logistics were flat at $0.835, and have fallen 12.6% since the start of the year.
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