MMP REIT - Dividend Payment of 1.50c for 2Qtr 2007

HIGHLIGHTS

• 2Q 2007 DPU of 1.50 cents exceeds 2Q 2006 DPU of 1.44 cents by 4.2%

• Significant NAV uplift of 9.8% from revaluation of Singapore properties

• Affirmed Moody’s corporate rating of Baa1 reflects high quality of assets and provides operational and acquisition funding flexibility.

The DPU of 1.50 cents for the period 1 April to 30 June 2007 is 4.2% higher
compared to the 1.44 cents achieved for the previous corresponding period. It also beats MMP REIT’s previous record of 1.47 cents achieved for the past two consecutive quarters of 4Q 2006 and 1Q 2007. On an annualised basis, the latest distribution represents a yield of 4.81%.

Compared to 2Q 2006, gross revenue rose 5.5% to S$23.6 million, due mainly to higher-than-expected rents achieved for retail space in the basement of Wisma Atria, as well as for office space. Contributions from six newly acquired properties in Tokyo, Japan, were also booked for the first time. Net property income was higher at S$17.9 million, despite higher year-on-year expenses mainly attributed to higher commission paid for new and renewal leases, increased tenancy costs arising from re-positioning of tenant mix, and continued depreciation charges on the escalators that were installed at Wisma Atria’s basement in end 2006.

NAV per unit was S$1.27 as at 30 June 2007, an increase of 9.5% from NAV per unit of S$1.16 as at 31 March 2007. The valuation of MMP REIT’s two prime Orchard Road properties increased by 7.3% from S$1.498 billion in December 2006 to S$1.608 billion as at 30 June 2007, resulting in a revaluation surplus of S$110 million.

Last done price: $1.25 SGD

Recent broker call: DBS Vickers - TP $1.48 SGD

Dated 24-07-2007

Price Target : 12-Month S$ 1.48 (Prev S$ 1.34)
Reason for Report : Potential catalyst
Potential Catalyst: Renewal of Toshin lease, positive office rental reversions

REPORTING ANALYST
Cheng Wee Tan +6563987962
chengwee@dbsvickers.com