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Mapletree Logistics Trust Management Ltd. (“MLTM”), as Manager of Mapletree Logistics Trust (“MapletreeLog”), announced the acquisition of N S Tang Building (the “Property”) located at 36 Loyang Drive, Loyang Industrial Estate, Singapore from N.S. Tang (Pte) Ltd (“N S Tang”) at a purchase price of S$13.8 million.
/sgxmasnet/
Mapletree Logistics Trust (MLT): Riding on Asia’s Acquisition Wave; Maintain Buy
Summary: Mapletree Logistis Trust (MLT) is our top most prolific acquirer among the Industrial S-REITs this year. Given the pick-up in industrial space demand and the strengthening of industrial rents, we think MLT looks set to capitalize on the recovery cycle in Asia . The full effect of the recently-announced acquisitions should improve its top-line and DPU contributions by 2011. MLT is trading at a 4% premium-to-book compared to the broader Industrial-REITs which are trading at 8% premium-to-book. We take the view that this premium is understated, considering MLT’s track record in undertaking accretive acquisitions that boost distributable income. Sponsor, Mapletree Investments, and Itochu also plan to develop logistics built-to-suit (BTS) projects of approximately US$300-500m over the next 3-5 years, which will be offered to MLT on a right-of-first refusal basis. This further provides MLT with a pipeline of potential assets for future acquisitions. Maintain BUY and we up our RNAV-derived fair value from S$0.97 to S$1.00 (19.5% estimated total return). (Ong Kian Lin)
OCBC Investment Research
i came i read i posted for your info ONLY
it is looking better but foreign investment outlook still need to monitoring
OCBC View on Industrial Reits
Positive Outlook.
Economic conditions remain favourable. Non-oil domestic exports (NODX) grew 23% YoY in Sep 10. Manufacturing output also increased 26.2% YoY. Going forward, the government remains committed to keep manufacturing as a key economic-driver in Singapore with new stimuli to raise the productivity and image of the different industries. These include a new branding campaign called the "We Can Movement" to attract talent to the logistics/SCM industry and the commitment to inject $16.1b over the next five years to support research, innovation and enterprise in the biomedicalsciences, electronics, info-communications, as well as other "white spaces".
Industrial rents strengthening.
Valuations.
From KimEng Research.
Mapletree Logistics Trust (MLT SP, $0.89, NOT RATED)
MLT’s 3Q10 results gave an indication of the strong underlying demand for logistics properties in Asia. Organic growth and acquisitions will continue to underpin its DPU growth. At FY11 consensus yield of 7.0% and P/B of 1.0x, the stock looks underpriced against its peers AREIT and Mapletree Industrial Trust.DPU increased to 1.54 cts..
Acquisition engine still roaring !!!
Another purchase today !!!
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_A7BEA97390981B6E482577C700449D85/$file/MLT_CompletionofAcq_25Oct2010.pdf?openelement
Amount of distributable did increase, but however, with the increased number of properties, the DPU in cents does not seem to be that attractive as compared to the past. In the past, the number of owned properties are less but the DPU in cents(annually) are more even through the amount distributable is less. The shares price are also higher in the past but not so for now.
I wonder how are they going to address in these aspects!!!!
RISES BY 8% YEAR ON YEAR
Highlights:
• Amount distributable increased by 8% year-on-year to S$30.9 million for the three months ended 30
June 2010 (“2Q 2010”) compared to the same period last year (“2Q 2009”).
• Available distribution per unit (“DPU”) of 1.50 cents for 2Q 2010 is 1.4% higher than 2Q 2009’s DPU
of 1.48 cents.
• Improvement driven largely by reduction in borrowing costs notwithstanding larger portfolio size.
• MapletreeLog converted three single-user assets into multi-tenanted buildings in 2Q 2010 for better
organic growth opportunities.
• MapletreeLog acquired a property each in Japan and Vietnam from the Sponsor in 2Q 2010.
Hopefully, you are right. With small things like delay in announcement, they can also "screwed up". Just don't understand why.
Anyway, hopefully, they are good at driving the DPU ( in cents ) and stock up.........
Just my personal opinion..........
Nah... I am optimistic !!!
They already kickstarted acquisition funded by debts and planing to raise gearing to 40%..
DPU should see a 7% upside this time...
No one seems to be interested in this stock now. Before the crisis, this stock is like heaven. But now, this stock seems to be unable to propel itself forward.
DPU in cents for this quarter going up, going down or remains unchanged. Announcement to be made during sat seems to spell bad news for investor!!!!!!
Just my personal thoughts
The outlook recommendation is $0.93 for Mapletree as compared to Cache Logistic that is $1.30. Can't remember where I saw these recommendatio.
Anyway, hopefully this stock will cheong and not just because of the fact that people buy for dividends and sell it after getting the dividends.
For the management side, hopefully they are able to steer this stock price up all the way and increase the dividends, i.e target to 10cents of dividend for year 2010.
Cheong already.
Supernormal growth for Singapore Economy..........but not even a better than normal growth for this stock. With the change in the recent leadership, hopefully the management side is able to turn this stock into one of the top 30 components of STI.
As of now, this stock performs poorly when compared to SMRT and Cache Logistic stock. What a disgusting REIT!!!!!!!!!!!!!
Any advice on this stock. It seems to be a stock with no potential.
SMRT shares have tripled or more when compared to the launched price..............
BTS = Build to Suit...
Mapletree Log is currently collaborating BTS projects with potential tenants..
If I am not wrong, the building will be built by Mapletree according to the needs of the tenant and then rented out to the tenant at long lease...
BTS helps to lower the cost of buying a ready-made building and also enhances the yield from the building it builts..