Mapletree Logistics Trust

Mapletree Logistics Trust: 3Q13 results came in within expectations. Rev, +8% YoY driven by the contribution from acquisitions (Japan, Korea & M’sia) as well as firm organic growth with NPI +10% YoY on lower opex from savings in property maintenance expenses. On QoQ basis, rev dipped marginally due to the weaker JPY. Excluding the divestment gain in 3QFY12, DPU growth would have been slightly higher at 3%. Portfolio occupancy remains almost full at 99.2% with positive rent reversions of 17% on average mainly from SG & HK (vs. 8% in 2Q). Portfolio occupancy remained high at 99.2% with average positive rental reversions of 17% for the portfolio, despite the fragile global economy. Balance sheet remains healthy with gearing at 36%; in which estimate MLT has around $700 mn debt headroom for acquisitions assuming 45% gearing target. Overall, yield Yields look attractive at 5.9% and 6.0% for FY12/13e and FY13/14e respectively implying 473bps spread, and sponsor has a $400m development pipeline. Ratings as follow: CS maintains O/p with $1.31 TP Deutsche maintains Buy with $1.24 TP