Frasers Commercial Trust sees stable DPU ahead with renewed Alexandra Technopark

SINGAPORE (Jan 24): It is very likely Hewlett Packard (HP) Enterprise will be leaving Alexandra Technopark – but this could prove a “blessing in disguise” for Frasers Commercial Trust (FCOT), says DBS Vickers Securities.

In a Tuesday report, lead analyst Mervin Song says he sees the potential loss of HP as a tenant as an opportunity for the trust to undertake an asset enhancement initiative (AEI) to increase rents along with the value of the property in the medium term.

To recap, FCOT on Monday posted a 1Q17 DPU of 2.51 cents, unchanged from a year ago. At the same time, its manager also announced Alexandra Technopark will be undergoing an AEI costing $45 million.

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