Mapletree Logistics

Mapletree Logistics: OCBC maintains Buy with $1.25 TP. Note that REIT has one of the most diversified portfolios in the industrial REIT space and allows MLT to capitalise on the robust demand for warehouse space, as well as to maintain a sturdy financial performance. For 3Q13, expect the positive trend to continue, driven by healthy rental and take-up rates and contributions from MLT’s past acquisitions. While the recent weakness in the JPY against SGD may have an impact on its distributable income, given that ~27% of its revenue was contributed by Japan historically, note that around 90% of amount distributable in FY13 is hedged/ derived in SGD. House believe that any impact from a depreciating yen is likely to be limited and also like MLT’s growth potential, which comes mainly from its strong pipeline of assets from sponsor and initiatives to recycle capital and enhance/ redevelop its existing assets.