[ET Net News Agency, 16 January 2018] Morgan Stanley lifted its target price for
Fortune REIT (00778) by 6% to HK$10, and maintained its "equal-weight" rating.
The research house is constructive on Fortune REIT's long-term growth prospects as a
decentralized mass retail mall operator. Mass retail has a better and more resilient
outlook than luxury retail, it noted.
However, Morgan expects DPU CAGR to slow to 5% during 2016-19, versus 12% YoY in 2015.
This is because of a lack of new mall contribution; renovation at Fortune Kingswood, which
begins in 2018; and mild increase in financing cost. (KL)