UOB ups target on Mapletree Logistics

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.05

UOB Kay Hian raised its target price on Singapore’s Mapletree Logistics Trust to $1.05 from $1.0 and maintained its buy rating.

Mapletree Logistics shares were up 1.7% at $0.925.

On Monday, the company announced the acquisition of seven warehouse facilities in Japan from Goodman Japan for a total of 17.5 billion yen ($268 million).

UOB Kay Hian said revenue contribution to Mapletree Logistics from Japan will rise to 29.4% from 24.1% following the acquisitions.

It said the acquisitions offer a stabilised yield of 6.2%, higher than the current net property income yield of 5.6% for the company’s existing Japan portfolio.