by winston » Wed Oct 24, 2012 3:33 pm
not vested
SINGAPORE-Frasers Centrepoint at record high; Brokers up target price
Frasers Centrepoint Trust rose as much as 1.8 percent to a record high after brokerages raised their target prices for the shopping mall owner, citing better-than-expected fourth-quarter results.
By 0425 GMT, units of Frasers Centrepoint were at S$1.945, with a volume of 1.2 million, compared with its full day average trading volume of 1.4 million over the last five sessions.
Frasers Centrepoint said its fourth-quarter distribution per unit (DPU) was 2.71 Singapore cents, 15.3 percent higher than a year ago, helped by higher gross revenue and net property income.
Citigroup raised its target price for the trust to S$2.08 from S$2.00, to factor in stronger contribution from its shopping mall Causeway Point, where full occupancy is expected at the end of the year.
Citi increased its 2013 and 2014 DPU estimates by 2-3 percent, and noted that Frasers Centrepoint's gearing fell to 30.1 percent, giving it comfortable room to raise debt to support any potential acquisitions.
OCBC Investment Research also raised its target price on Frasers Centrepoint to S$2.13 from S$1.97 and maintained a 'buy' rating, on expectations of better operating performance.
The brokerage expects Frasers Centrepoint to acquire a property, Changi City Point, in 2013, which it said should provide further growth.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"