FCT

FCT: Reported 1Q13 earnings, in-line; DPU of $0.024 (+9.1% YoY) was slightly below Street expectations due to weaker reversions at Bedok Point and lower (physical) occupancies at Causeway Point (CWP) as some of the tenants were still in fit-out stages; Gearing stays at 30%; Dividend yield of 5.2%; Portfolio occupancy rose to 97.2%, from 87.7% in 4Q12; Portfolio reversions averaged 5.2% in 1Q13, led by Anchorpoint (ACP) and CWP. CS noted that this has been the weakest rent reversion since listing, mainly due to Bedok Point’s 14.5% negative rent reversion for the 14 leases signed. On the outlook, mgmt is on track to beat its 13% ROI target for CWP AEIs (>S$12.20psf/month passing rents) based on the $72 mn capex. CS notes that next catalyst for FCT could take place as early as 1HCY13, with the potential acquisition of the 207,500 sq ft Changi City Point, which is estimated to be valued at around the $330-360m levels. CS maintains NEUTRAL with 2013E P/B of 1.3x with a TP of $2.05