Mapletree Commercial Trust - DBS Research 2020-05-29: The Flower That Blooms In Adversity

MAPLETREE COMMERCIAL TRUST (SGX:N2IU) | SGinvestors.io MAPLETREE COMMERCIAL TRUST (SGX:N2IU)

Mapletree Commercial Trust - The Flower That Blooms In Adversity

  • Remain bullish on Mapletree Commercial Trust and believe its best-in-class portfolio (VivoCity, MBC I and MBC II) will enable the REIT to weather the storm.
  • VivoCity, a dominant mall in the Greater Southern Waterfront, will remain a desired mall for retailers post COVID-19.
  • Less impacted by new bill with generous upfront support of 2.5 months (1.5 months out-of-pocket).



Maintain BUY on Mapletree Commercial Trust; lower Target Price to S$1.90.

  • We maintain our BUY call on Mapletree Commercial Trust (SGX:N2IU) and raised our Target Price to S$2.25 from S$1.90. Even though the COVID-19 outbreak will continue to impact VivoCity, we believe Mapletree Commercial Trust’s earnings will be supported by its prized assets, MBC I and MBC II, with their stable earnings and strong tenant profile.
  • Mapletree Commercial Trust is currently trading at attractive valuations post earnings revision at FY21F dividend yield of 4.6% and P/NAV of 1.1x, close to -1SD.


Where we differ: Best-in-class portfolio to weather the storm.

  • Despite the direct impact on VivoCity from the COVID-19 outbreak and restrictions on movement, we remain bullish on Mapletree Commercial Trust and believe that its best-in-class portfolio will enable the REIT to weather the storm. In addition, FY21 will be boosted by full-year contribution from MBC II.
  • Mapletree Commercial Trust also enjoys a scarcity premium as one of only two 100%-Singapore-focused large-cap REITs which is highly valued by investors.


VivoCity a dominant mall heading towards recovery.







Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbsvickers.com/ 2020-05-29
SGX Stock Analyst Report BUY MAINTAIN BUY 2.25 UP 1.900



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......