In a report released yesterday, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Mapletree Industrial, with a price target of S$2.54.
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Lock Mun Yee’s rating is based on several compelling factors that highlight the strengths of Mapletree Industrial. The company has demonstrated robust rental reversions in both Singapore and the US, which are indicative of its strong market position. The positive rental reversions, particularly in Singapore, where the portfolio saw a weighted average increase of 6.2%, suggest a healthy demand for its properties.
Furthermore, Mapletree Industrial’s strategic divestments have led to a reduction in gearing, providing it with additional debt headroom to explore potential acquisition opportunities. This improved financial flexibility, coupled with a stable occupancy rate and a focus on opportunistic divestments, positions the company well for future growth. The attractive projected dividend yield of 5.8% for FY26F also adds to the investment appeal, making it a favorable choice for investors seeking stable returns.
Mun Yee covers the Real Estate sector, focusing on stocks such as Keppel REIT, CapitaLand Ascendas REIT, and ESR-REIT. According to TipRanks, Mun Yee has an average return of 6.4% and a 56.49% success rate on recommended stocks.
In another report released today, DBS also assigned a Buy rating to the stock with a S$2.45 price target.