Mapletree Industrial Trust (MINT SP)
3QFY22: Exploring Acquisitions And Development Projects Overseas
3QFY22 DPU grew 6.4% yoy due to the acquisition of 29 US data centres and 8011 Villa Park Drive in Richmond, Virginia. MINT plans to diversify geographically to Europe and the Asia Pacific region. It will explore the acquisition and development of data centres, hi-tech buildings and R&D facilities in overseas markets. It has resumed the DRP for 3QFY22 distribution. MINT provides FY22F attractive distribution yield of 5.2%
(KDCREIT: 4.2%). Maintain BUY. Target price: S$3.72. |
Frasers Centrepoint Trust (FCT SP)
A strong start
Resilient suburban mall metrics, Buy
FCT’s portfolio occupancy was stable at 97.2% in 1Q22 (versus 97.3% in 4Q21), while rental reversion, which improved from FY21, looks set to strengthen further as tenant sales gain traction into the coming quarters.
Strong leasing momentum has helped to de-risk near-term expiries while tenant remixing efforts against high mall occupancies, should support
rental upside. We continue to see suburban malls leading the retail sector recovery in Singapore’s long reopening phase, with stable operating metrics for FCT’s more sizeable suburban malls portfolio underpinning its DPU visibility. Our forecasts and DDM-based TP of SGD2.90 (COE: 6.2%,
LTG: 2.0%) are unchanged. BUY.
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Suntec REIT (SUN SP)
Easing reversions
FY21 in line: Prefer CICT
SUN’s 2H21 DPU rose 9.8% YoY/8.6% HoH, helped by contributions from its
new UK properties and higher income from Suntec City mall. While occupancies were stronger for its Singapore office properties, rental reversions are set to moderate. SUN’s overseas diversification has helped
improved its DPU visibility, but gearing remains high versus peers and history, and is likely to cap accretion from further deals. The results were in line with our estimates and the street; we fine-tuned assumptions, and rolled forward valuation to FY22E, to our new DDM-based TP of SGD1.45 (COE: 7.8%, LTG: 1.5%). Stay at HOLD. We prefer CICT (CICT SP, SGD2.00, BUY, TP SGD2.55) given catalysts from DPU recovery in 2021, and
redevelopment upside.
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Mapletree Commercial Trust (MCT SP)
Seasonal strength
Stronger 3Q22
MCT’s revenue/ NPI jumped 8.9% QoQ/ 9.1% QoQ in 3Q22, from a stronger performance at VivoCity, with its recovery expected to gain traction in
coming quarters. Occupancies were lower across its assets but are expected to improve on the back of stronger leasing momentum in FY23.
The results were operationally in line with our estimates and the street, and we maintain our forecasts and SGD2.35 DDM-based TP (COE: 5.9%, 2.0%). Valuations have pulled back following the announcement of its proposed merger with MNACT on 31 Dec 2021 due to investor concerns on its diluted pure-play AUM. Beyond the strong financial accretion, we continue to see clear strategic merits of the deal. BUY.
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