Fortune Reit

Fortune Reit: StanChart reiterates Outperform, lifts TP to HK$6.90. Notes despite deteriorating macros, Fortune’s tenants are well positioned. The Reit achieved high occupancy of 96.1% and robust rental reversion of 20.1% in ytd 9M12. Fortune’s operational performance remained strong in 3Q12, underpinned by contributions from two new properties (Provident Square and Belvedere Square) and healthy reversion at the existing portfolio. Fortune’s trading liquidity has improved significantly of late, attracting interest in the stock. StanChart expects the Reit to be a compelling candidate for investors seeking high yield in the prolonged low interest rate environment.