REIT - DBS Research 2016-02-01: Singapore Traders Spectrum

FRASERS HOSPITALITY TRUST ACV.SI MAPLETREE GREATER CHINACOMM TR RW0U.SI

Singapore Traders Spectrum Wired Daily - 2016-02-01

1Q16 DPU for Frasers Hospitality Trust up 7.5% to 1.72 Scts, which was above expectations.
Results were boosted by better performance from Australia and Japan.
We expect FHT to benefit from the refurbished InterContinental Singapore, which will come on stream from March onwards.

Maintain BUY, TP of S$0.83.
With 1Q16 results ahead of expectations, we see potential upside to our numbers if the strong performance from Australia and Japan is sustained for the remainder of the year.
For now, we maintain our BUY call and TP at S$0.83.
At current levels, FHT trades at a c.15% discount to its NAV per share of S$0.86 and offers a prospective 8% FY16F yield.

Mapletree Greater China Commercial Trust (MAGIC) reported 3Q16 DPU of 1.854 Sct (+11.6% y-o-y) in line.
The Trust benefits from the recent acquisition of Sandhill Plaza, FX tailwinds and uplift in rents at its existing properties.
Maintain BUY, TP of S$1.11.
After the recent share price correction, MAGIC trades at 0.72x P/Bk (NAV per share of S$1.167) and offers a prospective 8.6% FY16F.

Yeo Kee Yan DBS Vickers | Ling Lee Keng DBS Vickers | http://www.dbsvickers.com/ 2016-02-01

DBS Vickers SGX Stock Analyst Report BUY Maintain BUY 0.83 Same 0.83

BUY Maintain BUY 1.11 Same 1.11