Stock Name: Frasers Comm
Company Name: FRASERS COMMERCIAL TRUST
Company Name: FRASERS COMMERCIAL TRUST
| Research House: OCBC | Price Call: BUY | Target Price: 0.97 |
FRASERS COMMERCIAL TRUST 20 Apr 2012 |
| POSITIVE SURPRISE ON DPU - Better results from lower interest costs - Stable operational performance - Expecting positive income growth Frasers Commercial Trust's (FCOT) 1HFY12 DPU was up 13.2% YoY to 3.2423 S cents, forming 48.5% of our DPU forecast. This is slightly ahead of our expectations, considering that FCOT may likely benefit from future earnings uplift following its recent acquisition of the remaining 50% stake in Caroline Chisholm Centre (CTL). While average portfolio occupancy eased marginally to 96.1% due partially to a 1.3ppt QoQ decline in CSC's occupancy, management revealed that it is mainly due to timing of the tenancy leases, and that fundamentals are still healthy. In the coming quarters, FCOT expects positive income growth to its portfolio, supported by the acquisition and positive rental reversions/ escalations. We maintain our BUY rating on FCOT with a revised fair value of S$0.97, as we incorporate the results into our forecasts. |
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