Singapore Stock Market News

Frasers Commercial Trust - Boosted by ATP

StockFanatic
Publish date: Fri, 23 Jan 2015, 04:47 PM
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FCOT reported a strong quarter, with DPU up 20% yoy, boosted by the first full quarter contribution from underlying leases at ATP following the expiry of its master lease. This was in line with our expectation, with 1QFY9/15 DPU at 25% of our full-year forecast.

We continue to like FCOT for its
1) higher contributions from ATP,

2) built-in rental step-ups at more than 34% of its leases and

3) highest dividend yield of 6.6% in 2015 compared to 5.9% for office S-REITs.

We maintain our Add rating with an unchanged DDM-based target price. FCOT remains our top pick within the office sector.
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