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Mapletree Logistics Trust What’s not to like
■ We like MLT’s proposed acquisition of Maplestree Logistics Hub Tsing Yi on all fronts. Entry NPI yield is 5.7% and we expect the acquisition to be accretive. ■ We view the acquisition price as attractive. We like HK's market fundamentals and the asset's quality, and we commend management's balance sheet recalibration. ■ HK will become MLT’s largest market by value; this would have implications on our blended cost of equity. ■ Perhaps, the only one thing which we are lukewarm on is valuations. Maintain Hold as we continue to project total returns of less than 10%.
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Singapore REITs: Continued strong Singapore’s industrial production which was
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| UOB KAYHIAN | |
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Aviation – Regional Not Quite Blue Skies
The impending entry of Norwegian Air into the Singapore market in September could impact SIA’s 3QFY18 pax yields and we believe the street has not factored in this risk. Recent and repeated terror attacks in Europe also impact leisure travel to the region and this will impact both SIA and CX. The latter’s ytd pax throughput has declined by 0.2% while HKIA’s has risen by 1.8%. This underscores the substantial competitive pressure it faces. Maintain HOLD on SIA and SELL CX.
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Check out our compilation of Target Prices
