Monday, October 25, 2010

Fraser Commercial Trust

Fraser Commercial Trust: Grp reported a strong set of earnings with Q4 NPI rising 16% YoY while Distributable Income at $14.2m was up 78% YoY and 14.5% QoQ. For the full year, NPI was up 25% YoY at $93 million, while DPU is at 1.12c, up 29% YoY and translating to a yield of 7%....

Strong performance attributed to rising rental rates, occupancy rates and by contributions from Alexandra Technopark, which grp bought in Aug last year. Contributions from its 2 Australian properties also grew partly as the AUD strengthened....

Grp has a forecasted DPU of 1.30c for FY11, translating to a yield of 8.13%. At current price grp trades at a huge discount to NAV at 0.42xP/B vs other office REITs. (K-Reit trades at 0.92x P/B with yield of 5% and CCT at 1.04xP/B and yield of 5.43%).

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