SINGAPORE (Jan 5): RHB is maintaining its “buy” call on Frasers Centrepoint Trust (FCT) with a target price of $2.22 despite foreseeing a challenging retail outlook for 2017, as the research house is confident in the REIT’s management as well as suburban mall portfolio.

In a Tuesday report, analyst Vijay Natarajan says he expects FCT to make more acquisitions this year in Singapore and in Australia, given its low gearing of 28.3% and hence “healthy headroom for debt”. Potential Singapore targets include Waterway Point, which is one-third owned by its sponsor Frasers Centrepoint Limited.

Following Northpoint shopping centre’s asset enhancement initiatives (AEIs), the analyst highlights how it will have better connectivity to the upcoming Northpoint City mall, and that the management expects double-digit rental reversions once AEI works are fully completed.

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