Fortune REIT

Fortune REIT: Results in line with street estimates; DPU increased 16.1% y/y to HK9.72¢, while distributable income rose 27.8% to HK$182.1m. NPI gained 33% to HK$275.2m, while revenue surged 34.6% to $392.6m driven by improved occupancy rates of 98.7% (+1ppts y/y), strong rental growth of 20.4% and additional income from Fortune Kingswood acquired in Oct '13. Portfolio occupancy rose to 98.7% (Dec FY12: 97.7%). Aggregate leverage was 32.7% (Dec FY12: 23.4%). NAV at end Dec was HK$10.26. Latest broker recommendations: StanChart reiterates Outperform and lowers TP to HK$7.50 (from HK$8.08)