Fortune REIT

Fortune REIT: Fortune REIT revealed details about the future growth opportunity in its acquisition target Kingswood Ginza mall. Management projects a 4.7% DPU accretion on a pro-forma basis. Management looks to subdivide the expiring spaces to accommodate smaller tenants as an immediate plan. It also targets to improve occupancy to 98-99% by end-2013. Stanchart attribute the recent share price weakness to the market’s misperception about the acquisition. Now that overhang should be removed, House reiterate its OUTPERFORM rating with TP of HK$8.20.