Mapletree Logistics Trust

UOBKayhian on 21 Jan 2015

FY15F PE (x): 16.6
FY16F PE (x): 17.0
Results in line with expectations. Mapletree Logistics Trust (MLT) reported 3QFY15
DPU of 1.87 S cents (+3.3% yoy, -1.1% qoq). 9MFY15 DPU is in line with our
expectations, accounting for 74.3% of our full-year DPU estimate of 7.60 S cents. Rent
reversions remained at a positive 9% in 3QFY15.
Rental uplift from MTBs set to remain muted in the near term. While management
expects increased rental uplift post conversion, low occupancy rates during transition
will impact earnings. Management has highlighted that occupancy during MTB
conversion hovers at around 50%.
Maintain HOLD with an unchanged target of S$1.32, based on DDM (required rate of
return: 6.9%, terminal growth: 1.5%). Entry price is at S$1.15.