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UOB KAYHIAN |
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Mapletree Industrial Trust (MINT SP) Higher On High-Tech
A strong quarter, with growth momentum MINT’s 1Q20 DPU of SGD3.10cts, up 3.3% YoY, was in line at 25% of our full-year, and likely ahead of the street; backed by stronger Singapore portfolio occupancies and rising hi-tech contributions. We continue to favour MINT for its positive growth fundamentals, as DPUs are supported by recovering leasing demand and growth visibility from a more resilient portfolio following its hi-tech asset investments and US diversification. Our forecasts and DDM-based TP remain unchanged, at SGD2.40 (COE: 6.7%, LTG: 1.5%). Catalysts from acquisition-growth given a low 33.4% gearing and SGD0.7-1.2b of debt headroom. BUY.
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REITs – Singapore Industrial REITs: Unearthing Key Trends In MLT And MINT Post-Results Briefings
Both MLT and MINT appear to have turned more cautious on their outlooks. MLT saw weakness in occupancies for trade-sensitive Singapore and Hong Kong portfolios. MINT has improved occupancies at the expense of suffering negative rental reversions. We stay cautious on industrial REITs as the stalemate in trade negotiations could extend over a prolonged period of time. Maintain HOLD for MLT (Target: S$1.39) and MINT (Target: S$1.94). Maintain OVERWEIGHT on the sector.
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PHILLIP SECURITIES |
OCBC |
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CapitaLand Mall Trust Reaping the harvest SINGAPORE | REAL ESTATE (REIT) | 2Q19 RESULTS
2Q19 NPI and DPU were in line with our forecast. The 2Q19 and 1H19 DPU form 25% and 50% of our DPU forecast respectively. Operating statistics were mixed. There were positive rental reversions amidst weaker occupancy. The softer retail sector outlook is still weighing down tenant sales. Maintain NEUTRAL with higher TP of $2.68 (prev. $2.36). Higher target price due to our lower risk-free rate assumption.
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Data Centre Primer: Seeking secular growth in an uncertain environment A data centre is a facility specially designed to house hardware equipment and software systems that support the mission-critical IT system of businesses. The data centre industry is becoming increasingly important with the exponentially growing demand for data and server support, as businesses are moving towards cloud computing solutions and countries across the world are pouring investments into smart city technologies. Geographically, nine of the world’s top 15 fastest growing data centre markets were located within APAC. We view Singapore as the region’s crown jewel in the data centre industry. For Singapore proxies, we view Keppel DC REIT (KDCREIT SP) [BUY; FV: S$1.93] as a key beneficiary of the growing popularity of co-location data centres. To a much smaller extent, Mapletree Industrial Trust (MINT SP) [HOLD; FV: S$2.29] also has exposure to the data centre industry, which contributed 17.7% of its AUM (as at 30 Jun 2019). We would, however, await a better entry point of <S$2.20 for MINT. |
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