[ET Net News Agency, 29 July 2019] Citi Research raised its target price for Fortune
REIT (00778) to HK$11.78 from HK$10.9 and maintained its "buy" rating.
The research house believes a falling 10-year UST yield driven by likely Fed rate cut of
25-50bps in the upcoming FOMC meeting has added further upside to Fortune REIT.
Citi expects DPU growth to resume in 2H (+1%/5.8% HoH/YoY) mainly on the expected
completion of Phase one AEI at Kingswood in September 2019, and at a 3% CAGR to 2021
backed by estimated 8-9% rental reversions and resilient non-discretionary retail spending
against macro uncertainty & recent social unrest. (KL)