FRASERS CENTREPOINT TRUST
J69U.SI
Frasers Centrepoint Trust - A stellar first quarter
- Frasers Centrepoint Trust (FCT SP, BUY TP: SGD2.22) had a stellar first quarter; registering a 4.4% YoY growth in its DPU, while achieving double digit (13.7%) positive rental reversion for its overall portfolio.
- Occupancy declined slightly to 94.5% (4Q15: 96.0%), as there were transitional vacancy due to fitting out.
- Considering that an AEI would be taking place in Northpoint in Mar 15, we would expect occupancy levels to be disrupted temporary.
- Management has cited that the refurbishment would be done in phases, so as not to impact its distributable income and rentals drastically.
- Since a third of the total lease renewals for the year has already been renewed in its first quarter, we think that the risk of not filling up spaces has been largely minimized.
- Additionally, we expect FCT to finish the year with a high single digit (7-9%) positive rental reversion, in spite of the challenging market.
- We maintain FCT as our TOP BUY, with an unchanged TP of SGD2.22.
Ivan Looi
RHB Invest
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http://www.rhbinvest.com.sg/
2016-01-22
RHB Invest
SGX Stock
Analyst Report
2.22
Same
2.22
