Frasers Centrepoint Trust > Neutral (maintained) RHB Research, Aug 30 Aug 30 close: S$2.75 Target price: S$2.55 (new, from S$2.25)

FRASERS Centrepoint Trust's (FCT) share price has surged 26 per cent year to date on investors' continued appetite for defensive yield plays, optimism over its latest acquisitions, and its potential inclusion in the FTSE NAREIT index.

While we remain positive on its latest moves and expect its well-located suburban malls to weather the challenging retail climate, it is not cheaply valued (1.3 times price/book value, almost at +2 standard deviations). We recommend that investors wait for a pullback.