In a report released yesterday, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Mapletree Industrial, with a price target of S$2.49.
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Lock Mun Yee has given his Buy rating due to a combination of factors that highlight Mapletree Industrial’s strong performance and strategic positioning. Despite a slight dip in occupancy rates, the company has demonstrated robust rental reversions of 8.2%, which indicates strong demand and effective lease management. This positive rental reversion is a key factor supporting the company’s revenue growth and overall financial health.
Additionally, Mapletree Industrial’s strategic initiatives, such as the sale of certain assets, are expected to reduce gearing levels, thereby strengthening its balance sheet. The company’s focus on tenant retention and opportunistic divestments further underscores its proactive management approach. The attractive projected dividend yield of 6.3% for FY26F also adds to the investment appeal, making it a compelling buy despite some potential risks such as non-renewals and global economic uncertainties.
According to TipRanks, Mun Yee is a 3-star analyst with an average return of 3.0% and a 53.98% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Mapletree Industrial, CapitaLand Ascendas REIT, and CDL Hospitality Trusts.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$2.60 price target.