OCBC sees ‘Buy’ opportunity as price of Mapletree industrial REIT softens

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Amid a significant fall in unit prices, OCBC Investment Research has singled out and reiterated Mapletree Industrial Trust as a ‘Buy’ opportunity, while maintaining its previous target price on the REIT.

Units of the Singapore-listed industrial REIT has fallen by about 3.5% since its year-to-date peak of SGD1.865 on 2 June 2017.

This is in contrast to the benchmark FTSE ST REIT Index, which gained 0.6% during the same period, said OCBC.

Mapletree Industrial Trust currently has a portfolio of 86 properties across Singapore, which are collectively valued at SGD3.7 billion (USD2.6 billion) as of 31 March 2017.

These properties are categorised into five property segments, and these are namely flatted factories, hi-tech buildings, business park buildings, stack-up & ramp-up buildings, and light industrial buildings.

The REIT also announced on 8 June that it will be divesting 65 Tech Park Crescent for SGD17.688 million to a pre-fabricated concrete parts manufacturer.

Read: Mapletree industrial REIT to divest 65 Tech Park

Despite these developments, OCBC remains unperturbed on its previous recommendation, and targets 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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