Frasers Centrepoint Trust

Frasers Centrepoint Trust (FCT): 3QFY13 results in line, distributable income increased 9.8% y/y to $23.5m alongside with a DPU of 2.85¢ (+9.6%). NPI leaped 15.4% to $28.5m driven mainly by 9.4% rent reversion and higher contributions from Causeway Point-post AEI works and Northpoint. Overall portfolio Occupancy grew slightly to 98.4% (+0.2 ppts) with weighted lease to expiry of 1.7 years. Gearing maintained at 30.4% with average term of debt at 3.1 years and cost of debt at 2.72%. FCT's upcoming rent renewals would come substantially from Causeway Point and Northpoint. Mgmt expect further upside to rental reversions given that operations at both malls were strong. In addition, Stanchart estimates that supply growth is 0.5% pa in 2013-15E compared to 4.2% islandwide, which would benefit retail landlords such as FCT. NAV of $1.54 per unit and 9MFY13 annualized yield of 5.6%. Broker recommendations: OSK DMG upgrades to BUY rating with TP of $2.20; CS maintain NEUTRAL with TP of $2.20; SC upgrades to OUTPERFORM with TP of $2.04;