FCT

FCT: 2QFY13 results inline with consensus; - NPI increased 9.7% due to positive rental reversion from Causeway Point (CWP). - Portfolio occupancy rate increased 1ppt to 98.2% after the AEI completion at Causeway Point. - Gearing increased by 0.4ppt to 30.1%; - DPU increased 8% y/y to 2.7¢, 1HFY13 DPU of 5.1¢; With only 9.6% of total gross rental income of space to be renewed in FY13, OSK DMG believe FCT’s earnings will continue to remain stable. However, house downgrades rating in view of a lack of clear near-term growth driver along with FCT’s high valuation (P/B 1.3x, FY13 forecast dividend yield of 4.9%). Management guided that there is further scope for AEIs within their portfolio although the scale would be much smaller. UOB Kay Hian maintains a BUY, TP of $2.51; CS maintains NEUTRAL, TP of $2.19; OSK DMG downgrades to NEUTRAL, TP of $2.27;