Frasers Centrepoint Trust

Frasers Centrepoint Trust: AmFraser initiated coverage on FCT with a BUY rating and TP of $2.24. House expects FCT to continue to deliver steady DPUs from its portfolio of six suburban retail assets, while capturing potential upside from the newly-acquired Changi City Point. Thus, unitholders can look forward to stable DPU yields of ~6% p.a. Despite an increasing supply of retail floorspace, Causeway Point and Changi City Point are unlikely to face competition in their respective primary trade areas. Meanwhile, Northpoint is firmly entrenched in Yishun as it is located right next to Yishun MRT. These three properties, which are the largest in the portfolio and accounted for 83% of NPI in 4Q FY9/14, may continue to register growth.