Frasers Centrepoint Trust is up 1.3% at $1.91, outperforming the FTSE ST REIT index’s 0.2% gain after reporting its fiscal-FY12 DPU rose 20.3% on-year to 10.01 cents on Causeway Point’s post-asset-enhancement-initiative performance and Bedok Point’s full-year contribution. FY12 net property income rose 26.4% on-year to $104.4 million, offset by property expenses’ 21.3% rise. According to FCT’s filings, FY12 DPU beat its forecast for 8.58 cents.
“We expect FCT to continue to register stronger numbers,” DMG & Partners says in a note, citing Causeway Point’s increased contributions as average occupancy and rental rates continue picking up from the AEI’s initial-stage lows. DMG also expects positive reversions in FCT’s suburban malls. “Given FCT’s defensive portfolio, potential to acquire Changi CityPoint in FY13, coupled with the continual interest in high dividend plays amid a strong Singapore dollar and a prolonged low-interest rate environment, we maintain our positive views.” It puts its rating and target under review.
Last week’s $1.92 peak, its all-time high, may offer a near-term cap.