Property: DBSV has property report. Expect economic factors and improving property fundamentals to underpin retail performance. Suburban rents to trend upward and Orchard Road rents stabilizing. Prefer suburban plays. House Top picks are Fraser Commercial Trust (TP $1.73, 5.5-5.8% FY11 Yield) and CapitaMall Trust (TP $2.06, 5.4% FY11 yield)….
House prefer retail sector that are exposed to the suburban sector, as it is more resilient to
external shocks while rising local wages and increasing purchasing power would enable consumers to boost retail spending. Continue to like FCT for its defensive earnings quality given exposure to the domestic suburban retail sector, completion of AEI at Causeway Point and impending acquisition of Bedok…
Like CMT as it is the mkt leader in SG retail property space. Completion of AEI works at Raffles City will boost earnings this year, while redevelopment of JCube and The Atrium AEI, scheduled to reopen over the next two yrs should provide a continual source of earnings growth.
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