by winston » Wed Jun 12, 2019 7:49 pm
not vested
FORTUNE REIT(778)
Analysis:
Fortune REIT is the first cross-border real estate investment trust in Asia and the first real estate investment trust holding Hong Kong property assets.
Fortune REIT holds a portfolio of 16 retail properties in Hong Kong, comprising approximately 3.0 million square feet of retail space and 2,713 car parking lots.
In 2018, the company delivers satisfactory results, realized revenue of HKD1,940.1mn, YoY +0.2%; net property income reached a record of HKD1,471.8mn which grows by 1% YoY;
The high records of revenue and NPI demonstrate healthy organic growth; income available for distribution for FY2018 was HKD986.2mn, increasing by 1.6% YoY; rental reversion on renewals of the company remained healthy at 12.7%.
In addition, the HKD150mn AEIs at the West Block of Fortune Kingswood is underway smoothly. Meanwhile, revitalization engineering for East Block is currently under planning and expected to start in 2020.
CK Asset (1113.HK) plans to reconstruct Harbor Plaza Hotel for residential, Fortune Kingswood will be benefitted from the resulting increase in local passenger flow and revenue growth.
At the end of 2018, the gearing ratio of the company has declined, the financial situation becomes more stable. We are optimistic about the future of the company.
Strategy:
Buy-in Price: $10.50, Target Price: $11.16, Cut Loss Price: $10.00
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"