MP REIT – Nomura

3Q08: in line with expectations

MMP’s 9M08 results were broadly in line with expectations, with reported DPU of S¢5.32/unit (up 18.0% y-y) representing 77.1% of our full-year forecast. Still, the deteriorating macro outlook (we have lowered our Singapore GDP forecast for 2009F to 1.3%, from 3.6% previously) amid higher retail supply likely calls for a review of our rental forecasts and yield assumptions with a negative bias. This will likely hurt our core net asset valuation of S$1.27/unit.