OCBC Investment Research is keeping its “buy” recommendation on Frasers Commercial Trust (FCOT) and raising its fair value estimate to $1.45 from $1.42 previously.
“One major development which took place during the quarter was Microsoft’s decision to extend its current lease at Alexandra Technopark (ATP) for another five years,” says OCBC lead analyst Andy Wong Teck Ching in a Monday report.
Microsoft occupies 78,000 sq ft of space at ATP, which is 7.4% of ATP’s net leasable area. The original lease, which would expired in FY2017, has now been extended to FY2022.
“Looking ahead, we believe rental reversions are likely to moderate, as FCOT’s average passing rent for its expiring leases in Singapore are now close to market rents,” he adds.
OCBC says FCOT’s 3Q results came in within expectations.
Distribution per unit (DPU) grew 2.6% to 2.41 cents, while gross revenue increased 11.1% to $38.6 million, and net property income (NPI) increased 15.6% to $28.1 million.
As at 11.25am, units of Frasers Commercial Trust are trading flat at $1.34.
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“One major development which took place during the quarter was Microsoft’s decision to extend its current lease at Alexandra Technopark (ATP) for another five years,” says OCBC lead analyst Andy Wong Teck Ching in a Monday report.
Microsoft occupies 78,000 sq ft of space at ATP, which is 7.4% of ATP’s net leasable area. The original lease, which would expired in FY2017, has now been extended to FY2022.
“Looking ahead, we believe rental reversions are likely to moderate, as FCOT’s average passing rent for its expiring leases in Singapore are now close to market rents,” he adds.
OCBC says FCOT’s 3Q results came in within expectations.
Distribution per unit (DPU) grew 2.6% to 2.41 cents, while gross revenue increased 11.1% to $38.6 million, and net property income (NPI) increased 15.6% to $28.1 million.
As at 11.25am, units of Frasers Commercial Trust are trading flat at $1.34.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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