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Frasers Commercial Trust - Steady Singapore

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Publish date: Tue, 21 Jul 2015, 09:26 AM
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FCOT's 3Q/9MFY15 DPUs were in line, at 24%/74% of our full-year forecasts. We continue to expect healthy growth from its Singapore properties as they remain under-rented. While we are less sanguine about its Australia exposure, we take comfort that only three leases are set to expire in FY9/16 (1.9% of total portfolio income) and FCOT has hedged its A$ exposure on a 6-9 months rolling basis. We maintain our Add rating, with a slightly higher DDM-based target price as we roll-forward our estimates and make minor tweaks to our FY16-17 DPUs. Catalysts could come from healthy rental reversions at its Singapore properties.
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