Fortune REIT’s revenue up 8.4% in Q4

Its DPU climbed 8%.

SGX Mainboard-listed Fortune REIT’s revenue climbed 8.4% year-on-year to $73.2m (HKD425.7m) in Q4, while its DPU jumped 8% to 10.5 HK cents.

According to OCBC, contribution from its recently acquired Laguna Plaza to further boost its growth.

“This results in our fair value estimate increasing from HK$7.29 to HK$8.05. While we like Fortune REIT for its resilient portfolio as 57% of its gross rental income is derived from the non-discretionary retail sector, we believe the stock appears fairly priced, having appreciated 7.4% YTD. Our forecasted FY15F distribution yield of 5.4% is more than one standard deviation below its 5-year average forward yield of 6.4%,” stated OCBC.