UOBKayhian on 26 Jan 2015
FY15F PE (x): 18.3
FY16F PE (x): 18.3
Frasers Centrepoint Trust (FCT) reported 1QFY15 DPU of 2.75 S cents, (+10.0% yoy, -
1.3% qoq) its strongest first-quarter showing yet. The results are in line with our
expectations with 1QFY15 DPU accounting for 23.9% of our full-year forecast. FCT’s
latest operating asset, Changi City Point, registered the highest reversion rate within
the portfolio, at 10.7% in 1QFY15. Over 50% of leases expiring in FY15 at Causeway
Point and Northpoint were renewed in 1QFY15 at healthy reversion rates of 9.1% and
6.1% respectively.
Downgrade to HOLD post the strong 13% yoy increase in the share price. Our target
price of S$2.23 is based on DDM (required rate of return: 6.8%, terminal growth: 1.8%).
Entry price is S$1.90.
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