Frasers Commercial Trust | Neutral April 24 close: S$1.49 Target price: S$1.50 RHB Research Institute, April 24

We remain neutral pending more visibility on Alexandra Technopark (ATP) leases, where occupancy has been sub-optimal, and redeployment of divestment proceeds.

Distribution per unit (DPU) is expected to maintain stable. We expect higher capital distributions to offset the loss of income from divestments and lower portfolio occupancies for the next few quarters. Management said that it still has about S$159 million of divestment gains from the disposal of hotel development rights and sale of 55 Market Street.