Fortune Reit

Fortune Reit: StanChart reiterates Outperform with TP HK$8.20. Expects Fortune to post a healthy set of 1H13 results on Monday, 15 Jul; forecasts DPU of HK$0.175 (+10.6% yoy), driven by reversions/growth from AEI as well as contributions from two new properties. Believes 2Q13 rental reversions remained healthy (in the mid teens), after the robust 19.5% in 1Q13. Tips Fortune as its top pick in the HK Reit space given its earnings resiliency. It is trading at 5.3% FY13e yield vs the 10yr HK Exchange Fund Note yield of 2.45% and Link Reit’s 4.1%.