Singapore Stock Market News

Frasers Centrepoint Trust - Healthy and stable

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Publish date: Thu, 23 Jul 2015, 10:30 AM
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FCT's 3Q/9MFY15 DPUs were in line, at 26% and 74% of our full-year forecasts. We are encouraged by the improvement in its tenant sales (+2.2% yoy) and shopper traffic (+3.6% yoy). While occupancy dipped slightly due to Bedok Point, rental reversion for 9MFY15 remained healthy at 6.2%. With only 7.1% of its portfolio leases set to expire in the remainder of the year, we expect FCT to remain stable operationally. We maintain our Add rating, with marginally lower DDM-based target price and DPU forecasts as we fine-tune our rental estimates. Potential catalysts are better-than-expected improvement in operating figures or updates on the Northpoint AEI.
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