Frasers Commercial Trust

Frasers Commercial Trust: OCBC maintains Buy with $1.23 TP. Note that Frasers Commercial Trust (FCOT) announced that it has not exercised its right to redeem the Series A Convertible Perpetual Preferred Units (CPPUs). However, CPPU holders had successfully exercised their right to convert 1.0m CPPUs at a conversion price of $1.1845 per unit. House note that 878,697 new ordinary units will be issued on 1 Oct through the conversion process and $341.5m CPPUs will be left in issue post conversion. House currently maintaining view that FCOT will likely redeem half of its CPPUs as the distribution rate is relatively high at 5.5% of its offer price. In view of the CPPU conversion, we now factor in the new ordinary units into our model.