Brokers' take

Frasers Centrepoint Trust | Outperform July 25 close: S$2.14 Target price: S$2.28 OCBC Investment Research, July 25

FRASERS Centrepoint Trust (FCT) reported an in-line set of Q3 FY17 results. Gross revenue fell 3.3 per cent year on year to S$43.6 million due to the ongoing AEI at Northpoint. Distribution per unit (DPU) declined by 1.3 per cent year on year to three Singapore cents. FCT's portfolio occupancy held firm at 87.1 per cent (-0.1 percentage point quarter on quarter), as at June 30, 2017, and we expect improvement in the occupancy of Northpoint and Changi City Point ahead. There was still some softness in overall portfolio shopper traffic and tenant sales, but the year-on-year dip was moderate when compared to the preceding quarter. Excluding Northpoint, FCT's shopper traffic grew 3.7 per cent year on year while tenants' sales …