Yielding like a REIT
Growing developer with high dividend yields.
We maintain our BUY rating on Frasers Centrepoint Ltd (FCL) for its attractive valuations at 0.7x P/NAV and FY17F PE of 11x, and offering one of the highest dividend yields among developers at c.5.7%.
We continue to expect re-rating catalysts coming from potential asset monetisation from ongoing strategies to crystallise value across its portfolio.
Valuation:
We maintain our BUY rating on FCL, increase our target price to S$2.00 from S$1.90 (30% discount to RNAV) from rolling forward our earnings estimates.
Key Risks to Our View:
Dependent on the outlook of the Australian real estate market and currency. The group derives an estimated 30% of PBIT from Australia, and returns could be impacted by the weakening AUD/SGD exchange rate.
Source: DBS
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