Mapletree Logistics Trust holds firm

While management expects business sentiments to stay cautious, analysts remain confident.

OCBC Investment Research noted:

For FY13, we remain confident of MLT’s financial performance. While management expects business sentiments to stay cautious in light of the slowing growth in Asia and concerns over the Eurozone crisis, we expect MLT to continue to benefit from its recent acquisitions and enhanced operational metrics.

We also believe that positive rental reversions from its portfolio are still on the cards, albeit possibly lower than the average growth rate of 10% seen in 1QFY13.

In addition, only 12.7% of its leases by NLA are due for renewal in FY13, of which ~42% has been successfully renewed/replaced. Hence, we are positive of MLT’s results in the coming quarters.

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