Frasers Commercial Trust

Frasers Commercial Trust: Announced strong 3Q12 results which was above estimates. DPU at 1.70c, +23.2% YOY, while NPI at $26.6m, +7% yoy. Key drivers for this robust performance were the acquisition of the other 50% interest in Caroline Chisholm Centre, and full qtr rev contribution from China Square Central after expiry of the master lease. Additionally, FCOT saw a reduction in interest expense following the refinancing and partial prepayment of the A$105.0m loan facility. Operationally, average occupancy rates for the portfolio remain robust at 96.7%, underpinned by healthy occupancy rates for both SG and Aus portfolios. Looking ahead, FCOT will embark on an AEI’s to upgrade the main tower block office lobby and common areas at China Square Central to complement the proposed covered link way that connects directly to the future Telok Ayer MRT station. At current price, grp trades at 0.73x P/B, with a yield of 6.2%, and leverage ratio at 38%. Ratings as follow. CIMB maintains OutPerform with $1.21 TP