[ET Net News Agency, 29 July 2019] UOB Kay Hian raised its target price for Fortune
REIT (00778) to HK$10.5 from HK$9.5 and maintained its "hold" rating.
The research house said Fortune REIT's 1H DPU (Distribution Per Unit) of 26.13 HK cents
(down 0.8%) is in line with UOBKH' s expectation. The mild decline was mainly due to the
disposal of Provident Square in February 2018 and the ongoing AEI (Asset Enhancement
Initiatives) at Fortune Kingswood.
On a like-for-like basis, revenue and NPI (Net Property Income) was up 0.7% and 1.1%
respectively. The impact from a 4.3ppt improvement in occupancy rate will be fully
reflected in 2H, it added.
UOBKH raised its 2020-21 DPU forecasts by 1-2%, to factor in the improvement in
occupancies and potential impact from completed AEI at Fortune Kingswood. (KL)