SINGAPORE (July 18): RHB is maintaining its “buy” call for Frasers Centrepoint Trust (FCT), with a target price of $2.22 on the back of strong rental reversions in 3QFY16. The research house also likes FCT malls for its stable and resilient rental income as investors continue to hunt for yield instruments amidst increasing uncertainties.

According to the report dated July 18, the REIT posted a 0.1% increase in DPU on a y-o-y basis in 3QFY16. DPU remained stable despite a 5.1% decline in net property income (NPI) for the quarter, as FCT distributed $2.1 million additional cash retained in previous quarters.

In addition, the REIT also reported a 10.9% positive rental reversion for 9MFY16, offsetting the rising vacancies arising from asset enhancement initiative (AEI) works at its Northpoint shopping mall, says RHB analyst Vijay Natarajan.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook