Mapletree Commercial Trust
Steady as she goes
■ MCT’s 1HFY20 DPU of 4.63 Scts (2.9% yoy) came in within expectations.
■ Both VivoCity and office/business park portfolio delivered positive reversion.
■ Maintain Hold; we believe near-term catalysts have been priced in.
Property – Singapore
A Stellar September
URA data showed another month of strength as private home-buying sentiment remained strong in Sep 19; private new-home sales jumped 36% yoy and 13% mom. In our view, demand-side policy is even further from the government’s mind, given this data. Maintain MARKET WEIGHT as we believe the sector is reasonably valued.
Keppel Infrastructure Trust (KIT SP) : BUY
Distributable cash flow buffer provides confidence in DPU sustainability
• 3Q19 DPU of S$0.93 in line
• Newly acquired Ixom delivers seasonally strong quarter, drives distributable cash flows up 22% q-o-q
• Divestment of DC One strengthens coffers for future M&A ambitions
• Maintain BUY with TP of S$0.58; stock still offers around 15% total return including 7% yield
Keppel Pacific Oak US REIT (KORE SP): BUY
Riding the Technology boom
• 3Q19 results in line with expectations • Positive leasing momentum; reversions up 13.4% YTD
• Key cities of Seattle, Austin and Denver seeing strong absorption
• Awaiting positive contribution from proposed acquisition of One Twenty Five in Dallas
Check out our compilation of Target Prices