Frasers Centrepoint Trust’s (FCT) 4QFY15 gross revenue grew 1.7% YoY to S$47.5m, while DPU rose 2.7% to 2.859 S cents. This was within our expectations. For FY15, FCT’s gross revenue and DPU increased 12.1% and 3.8% to S$189.2m and 11.6 S cents, respectively, and constituted 98.6% and 98.9% of our full-year forecasts. Positive rental reversions of 7.1% were recorded in 4QFY15, bringing the average portfolio rental reversion to 6.3% for FY15.

Occupancy was down marginally by 0.5 ppt QoQ to 96%. However, shopper traffic was up 8.2% YoY in 4QFY15, while tenants’ sales grew 2.1% YoY for the 3-month period ended Aug 2015. Looking ahead, FCT has earmarked an AEI at Northpoint Shopping Centre. This would commence in Mar 2016 and we will provide more details after the analyst briefing later. Maintain our BUY rating but we will review our S$2.24 fair value.

Source: OCBC Research - 22 Oct 2015