Lock Mun Yee, an analyst from CGS-CIMB, reiterated the Buy rating on Mapletree Industrial (MAPIF – Research Report). The associated price target is S$2.56.
Lock Mun Yee has given his Buy rating due to a combination of factors that highlight Mapletree Industrial’s robust performance and strategic initiatives. Despite a slight year-on-year decline in revenue and net property income, the company has managed to maintain a stable distribution per unit and has seen an overall increase in portfolio value. This growth is attributed to positive rental reversions in its Singapore properties and contributions from its assets in Osaka and Tokyo.
Moreover, Mapletree Industrial’s strategy to address vacancies in its US portfolio by re-leasing and repositioning, along with the proposed divestment of a property in Georgia at a premium, demonstrates proactive management. The company’s healthy interest coverage ratio and attractive projected dividend yield further support the Buy recommendation. Potential catalysts for a re-rating include better-than-expected rental reversions, while risks involve non-renewals and a global economic slowdown.
Mun Yee covers the Real Estate sector, focusing on stocks such as Ascott Residence, Keppel REIT, and CDL Hospitality Trusts. According to TipRanks, Mun Yee has an average return of -0.5% and a 40.21% success rate on recommended stocks.
In another report released on May 2, DBS also maintained a Buy rating on the stock with a S$2.60 price target.