Maybank Kim Eng issues ‘Buy’ rating on AIMS AMP REIT

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Maybank Kim Eng Research has initiated coverage on AIMS AMP Capital Industrial REIT with a ‘Buy’ rating.

The rating was issued against the backdrop of news that Singapore’s industrial production expanded 10% year-on-year in March 2017, propelled by 38% and 13% year-on-year increases in the electronics and precision engineering clusters respectively.

Singapore’s manufacturing purchasing managers’ index (PMI) also saw its eighth consecutive month of expansion in April 2017, further underlining general expectations of a stimulation in the demand for industrial space in the quarters ahead.

This is despite near term pressures and further possibilities of negative rental reversions in the more immediate quarters ahead.

AIMS AMP Capital Industrial REIT currently has a portfolio of 26 industrial properties across Singapore, and one business park property in the state of New South Wales, Australia. It is currently Singapore’s fourth largest industrial REIT by assets under management.

Amid optimism on the demand for industrial spaces, Maybank Kim Eng pointed to a couple of other reasons as to why it has issued a ‘Buy’ rating on the REIT.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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