[ET Net News Agency, 29 July 2019] Daiwa Research lifted its target price for Fortune
REIT (00778) to HK$11.5 from HK$10.9 and maintained its "outperform" rating.
The research house said Fortune REIT's 1H NPI (net property income) and distributable
income rose by 0.7% and 0.1%, respectively, despite a 0.4% fall in revenue.
Daiwa thinks the results suggest that Fortune REIT has come out of the challenge related
to the disruption caused by the AEI (Asset Enhancement Initiatives) on Fortune Kingswood
(its largest asset) and this should bode well for the prospects of its distributable
income in the years ahead.
Daiwa did not change its forecasts of Fortune's distributable income from operation, but
lowered its 2019-20E DPU by 4% as it no longer assumed that it will pay a special
distribution to offset the disruption caused by the Fortune Kingswood AEI. (KL)