Mapletree Industrial Trust’s target raised to $1.50 by UBS on strong growth

SINGAPORE (July 1): UBS Global Research is maintaining its “sell” recommendation for Mapletree Industrial Trust (MINT) but raising its target price to $1.50 from $1.45 previously, as valuations remain high.

Based on UBS’ estimates, MINT is currently trading at 16.4 times FY2017 forecast earnings and 15.7 times FY2018 forecast earnings.

UBS analysts Michael Lim and Kok Wai Fai noted that industrial rents have been under pressure with falling leasing demand and increasing supply. The REIT is also seeing low single-digit rent reversions which indicate limited room for organic growth, and fewer opportunities to increase occupancies.

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