CIMB Research raised its target price for Mapletree
Industrial Trust, which owns factories and other
industrial assets, to S$1.51 from S$1.31 and kept its 'neutral'
rating, citing higher margins.
By 0253 GMT, units of Mapletree Industrial were flat at
S$1.395, and have surged 30 percent since the start of the year,
compared with the FTSE ST Real Estate Investment Trust's
34 percent rise.
Mapletree Industrial said its distribution per unit for the
second quarter was 2.29 Singapore cents, 11.7 percent higher
than the year-ago period, due to contributions from
acquisitions, higher rents and improving margins.
CIMB said the trust has stronger capital management, as it
issued a S$45 million 10-year fixed rate note that lengthened
average debt tenure to 3.2 years from 2.7 years, yet borrowing
cost fell to 2.3 percent from 2.5 percent.
However, CIMB noted that its current price to book value of
1.4 times is among the highest in the sector, and has likely
priced in growth potential.
1102 (0302 GMT)
(Reporting by Charmian Kok in Singapore;
email@example.com); Editing by Jijo Jacob