As a result, the brokerage has kept its “add” rating for the stock with an unchanged target price of $1.70.
But it has lowered its FY20-22 earnings per share forecasts by 1.3%-12.1% on slimmer projected hospitality margins and update for the latest real estate investment trust contributions.
According to CGS-CIMB, Frasers’ retail property occupancy in Singapore and Australia was lower y-o-y, while the company’s Singapore commercial portfolio saw an uptick in take-up rate.
On the other hand, occupancy for its Australia logistics and industrial portfolio slipped marginally y-o-y, while its Europe portfolio occupancy was stable.
CGS-CIMB notes that Frasers’ hospitality operations were impacted by the Covid-19 outbreak, resulting in lower occupancy and average room rates in 3Q FY20.
As at 2.27 pm, Frasers was flat at $1.19 with 113,500 shares changed hands.
