Mapletree Industrial soars on debut; attractive yield: NRA

Mapletree Industrial Trust (ME8U.SG) opens +23.7% at $1.15, vs $0.93 IPO price; last at S$1.17; MIT second Singapore sovereign wealth fund-backed entity to come to market this week, after GLP (MC0.SG) listed Monday; MIT offer was 38x subscribed. NRA Capital says IPO price translates to “attractive” annualized yield of 7.6% for FY11, projected FY12 yield at 8.0%. “We also like MIT for its diversified portfolio (70 properties across various types) which offers a level of resilience. We believe that MIT is a strong dividend play stock and would appeal to investors who prefer a stable income-yielding stock.” Tips various rental growth opportunities as portfolio’s average rent generally below market rents, opportunities for rental reversion as rental caps expiring, MIT has well-positioned lease expiry profile. Also likes exposure to industrial market which less volatile vs office market. Order book quotes suggest $1.20 near-term hurdle.