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UOB KAYHIAN |
UOB KAYHIAN |
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Frasers Centrepoint Trust (FCT SP) 2HFY26: Positive Reversion And AEIs Underpin Sustainable Growth
Highlights • FCT clocked positive rental reversion of 6.6% in FY26 and maintained stable portfolio occupancy at 99.7% as of Sep 26. Tenant retention was healthy at 81%. Occupancy cost of 16.3% was supported by tenant sales growth. • Causeway Point, believed to be most susceptible to retail sales leakage to Johor Bahru, achieved growth in NPI of 6% yoy in 2HFY26. Northpoint City saw NPI growth of 23% yoy, boosted by full six-month contribution from Northpoint City South Wing (acquisition completed on 26 May 25). • FCT creates value through AEIs. Maintain BUY. Target price: S$2.92.
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Hartalega (HART MK) Tides Turning But Headwinds Persist
Highlights • 2QFY27 earnings to come in weaker qoq, mainly due to cost pressures and temporary decline in volume sales resulting from the ongoing Iran war. • We forecast 4-15% FY27-29 earnings growth, but various challenges such as higher input costs and lingering China competition remain. • Risk-reward appears balanced. Maintain HOLD and target price of RM1.06.
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Singapore Banks 3Q26: What to expect
Slower growth, underlying strength intact. POSITIVE UOB reports 3Q26 on 04 Nov, DBS 05 Nov and OCBC 06 Nov. We expect marginally weaker earnings sequentially, driven by lower trading income. Fees should provide some offset, especially from wealth management. NII is likely to be balanced between positives (from strong loans, higher asset yields) and negatives (from increased deposit costs). Amidst rising rates, we think NIMs have bottomed. Costs, asset quality and provisions are unlikely to negatively surprise. Management guidance may see marginal upgrades for loan growth and margins – especially for UOB and OCBC.
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OUE REIT (OUEREIT SP) Resilient earnings underpinned by hospitality strength
3Q26 results in line DPU was not disclosed for 3Q26 and NPI was in line with our full year estimate. Finance costs declined 12.4% YoY, while Salesforce Tower contributed SGD1.6m in distribution income. Gearing increased 0.6ppt QoQ to 42.1%, while cost of debt remained stable at 3.6%. As operating performance remained broadly in line with our expectation, we maintain our FY26–27E forecasts, DDM-based TP of SGD0.45 and BUY call.
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| DBS GROUP RESEARCH | |
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Suntec Real Estate Investment Trust
What has happened? Suntec REIT delivered another quarter of healthy earnings growth, supported by stronger Singapore office and retail contributions and lower financing costs. 3Q26 DPU rose 13.4% y/y and 0.9% q/q to 2.017 Scts, bringing 9M26 DPU to 5.953 Scts (c.74% of our FY26 projections), in line with our estimates and consensus. Excluding the SGD2.0mn reversal of Australian withholding tax provisions in 3Q25, underlying DPU grew a stronger 18.0% y/y. Gross revenue increased 5.2% y/y and 0.2% q/q to SGD123.6mn, while NPI rose 6.2% y/y and 2.1% q/q to SGD83.4mn, reflecting higher Singapore rents and occupancies, the commencement of backfilled leases at 177 Pacific Highway and improved occupancy at 477 Collins Street. Singapore office occupancy remained high at 99.6%, with positive rental reversions of +7.3% in 3Q26, while Suntec City Mall reversions accelerated to +11.2% from +8.5% in 2Q26, driving an 11.6% y/y increase in retail NPI. JV income also grew 5.3% y/y, supported by a stronger contribution from MBFC. Financing costs declined by SGD1.8mn y/y, although gearing remained elevated at 43.0%, up from 41.5% at end-FY25. The 9M26 average financing cost declined to 3.57% from 3.71% in FY25, while ICR improved to 2.3x from 2.1x.
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