HPH Trust: Brexit implications and debt amortization
- Brexit would negatively impact topline should it result in depressed economic activity in the region or in a severely weakened euro.
- However due to the lack of clarity regarding the implications of Brexit, OCBC keep its FY16 growth assumptions.
- Further, OCBC expects management to adjust their pace of debt repayment given the slower than expected pace of rate normalization.
- OCBC's FY17's DPU forecast rises from HK28¢ to HK30¢ and TP increases from US$0.41 to US$0.43.
- HPHT is currently trading at a FY16 yield of 7.9% and FY17 yield of 8.5%.