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MAYBANK KIM ENG |
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Frasers Centrepoint Trust Growing steadily
■ 9MFY9/18 DPU of 9.153 Scts was within expectations, at 74% of FY18F forecast. ■ 3QFY18 boosted by better occupancy and positive rental reversions from larger malls. ■ We expect the larger malls to continue driving growth with higher footfall, occupancy rate and rental reversions. ■ Healthy balance sheet; well positioned for inorganic growth. ■ Maintain Add with unchanged TP of S$2.41.
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Mapletree Logistics Trust (MLT SP) Fine-tuning DPU & TP; still a HOLD
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| OCBC SECURITIES | UOB KAYHIAN |
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Ascott Residence Trust: Sorry, I’m checking out for now
ART remains the largest hospitality S-REIT by market capitalization, with a diversified base of quality assets in gateway cities. Operationally, we like ART for the strong brand recognition of its assets as well as the resilient nature of its portfolio. However, we remain cautious in light of the rising interest rate environment, given that investors may demand higher yield from bond-like assets. We also see muted DPU growth ahead – in the low single-digits for FY19. Our cost of equity increases from 7.3% to 8.0%, following which our fair value drops from S$1.14 to S$1.00. Against 24 Jul’s close, ART is trading at 6.0% FY18F yield, around 1 std deviation below its 5Y average. Against our fair value, ART would be trading at a FY18F DPU yield of 6.8% or close to its 5Y average. We downgrade ART from Hold to SELL as at 24 Jul’s close.
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REITs – Singapore 2Q18: MLT (In Line), ART (Below), FCT (In Line)
MLT’s 1QFY19 DPU grew 3.7% yoy on the back of improved performance from its portfolio and new acquisitions in Hong Kong. Maintain HOLD and target price of S$1.36. ART’s 2Q18 results came in below expectations, mainly due to the absence of one-off forex gains and an enlarged unit base. Maintain HOLD and target price of S$1.18. FCT’s 3QFY18 DPU was up 1.8% yoy due to higher contributions from its three larger malls. Maintain BUY and target price of S$2.32. Maintain OVERWEIGHT on the sector.
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RHB SECURITIES |
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Singapore Exchange
Respectable FY18 SADV Maintain BUY and TP of SGD9, 20% upside. SGX will be releasing its FY18 results on 27 Jul 2018. Bloomberg data indicated FY18 SADV of SGD1.24bn, which is in line with our expectation of SGD1.2bn. We are bullish on FY19’s SADV, forecasting SGD1.39bn as global uncertainties drive trading activities. Factoring in some negatives from the trading of Nifty 50 Index Futures, we are forecasting FY19 DADC of 0.82m, which is similar to 4QFY18’s DADC. SGX’s FY19F dividend yield of 4.6% is attractive vs Singapore’s sovereign 10-year bond yield of 2.42%.
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Check out our compilation of Target Prices
