Frasers Centrepoint Trust - OCBC Investment 2016-04-22: In-line set of 2QFY16 results

Frasers Centrepoint Trust - OCBC Investment 2016-04-22: In-line set of 2QFY16 results FRASERS CENTREPOINT TRUST J69U.SI 

Frasers Centrepoint Trust: In-line set of 2QFY16 results 

  • Frasers Centrepoint Trust (FCT) reported its 2QFY16 results this morning which came in within our expectations. 
  • Gross revenue was down marginally by 0.8% YoY to S$47.1m but NPI rose 0.4% to S$33.7m due to lower utility tariff rates and write-back of provision for property tax as a result of resolved property tax appeals and objections. 
  • DPU increased 2.6% to 3.039 S cents although management had retained S$1.1m of taxable income available for distribution (or 0.116 S cents per unit) in 2QFY16 (2QFY15: nil). 
  • For 1HFY16, FCT’s gross revenue slipped slightly by 0.5% to S$94.2m and this made up 48.6% of our FY16 forecast. 
  • DPU of 5.909 S cents represented growth of 3.4% and formed 50.1% of our full-year forecast. 
  • During the quarter, FCT delivered average positive rental reversions of 5.6%, with strong growth led by Changi City Point (+17.4%) and Causeway Point (+8.7%), but partially offset by Bedok Point (-26.9%). 
  • Portfolio occupancy declined from 94.5% as at end Dec 2015 to 92.0% due largely to the commencement of AEI at Northpoint in March. 
  • We note that this AEI had previously been well communicated by FCT to the market. We will provide more details after the analyst briefing. 
  • Reiterate our BUY rating and S$2.25 fair value on FCT. 



Wong Teck Ching Andy CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-04-22
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 2.25 Same 2.25


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