Limited upside for Frasers Commercial Trust after record distribution

SINGAPORE (Oct 21): Frasers Commercial Trust (FCOT) posted a record distribution per stapled security of 9.8 cents for FY 16 to Sept, the highest payout since its listing in 2006.

(See also: Frasers Commercial Trust records highest-ever full year distributable income of $77.6 mil)

However, a recent rally in the trust’s share price and concerns about the poor market outlook, has limited further upside for its shares. As such, CIMB downgraded the trust to a “hold” rating, with a lower target price of $1.40 from $1.42. Likewise, RHB Research downgraded the trust to a “neutral” rating with an unchanged target price of $1.40.

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