Fraser Centrepoint Trust

Fraser Centrepoint Trust: 1QFY15 DPU met the lower end of estimates, rising 10% y/y to 2.75¢, while distributable income increased 22.1% to $25.2m. Revenue climbed 18.3% to $47.2m, while NPI grew 16.2% to $32.9m, from the addition of Changi City Point, plus increased revenue from Causeway Point. In the quarter, renewable leases clocked in an average rental reversion of 7.7%> Occupancy dipped to 96.4% from 99.1% q/q, due to transitional vacancies at Northpoint, Changi City Point, and Bedok Point. WALE stood at 1.7 years. Aggregate leverage stood at 29.3%, implying some $270m debt headroom. All-in borrowing costs was 2.7%. CIMB cites 22% of leases are set to expire this year, with majority from larger malls like Causway Point and Central City Point. Given their attractive location, there is still room for positive rental reversions. Trading at 1.1x P/B and 5.5% annualized 1QFY15 yield. Latest broker ratings: CIMB maintains Add with TP of $2.18 JP Morgan maintains Underweight with TP of $1.85