Frasers Centrepoint Trust (FCT) reported 4QFY14 revenue of S$46.7m, up 16.1% YoY, attributed largely to the acquisition of Changi City Point on 16 Jun 2014. DPU dipped 6.5% to 2.785 S cents, as 4QFY13 DPU included 0.35 S cents of retained cash from previous quarters. Excluding this one-off item, DPU for 4QFY14 would have increased by 5.9%.

For FY14, FCT’s revenue rose 6.8% to S$168.8m, or 97.3% of our estimate. Full year DPU of 11.187 S cents (+2.4%) matched our 11.2 S cents forecast. Overall portfolio occupancy stood at a healthy 98.9% (+0.4 ppt QoQ). FCT also recorded positive average rental reversions of 10.9% and 6.5% for 4QFY14 and FY14, respectively. We will provide more details after the analyst briefing. Maintain BUY and S$2.08 fair value on FCT for now.

Source: OCBC Research - 24 Oct 2014