Source: Zhitong Finance Author: Xu Wenqiang
Damo expects property prices and office rents in Hong Kong to drop by 10% and 5% respectively this year; retail rents are expected to rise by 3%.
Morgan Stanley released a research report saying that high interest rates and weak macroeconomic conditions in the real estate sector will continue this year. The bank expects property prices and office rents in Hong Kong to drop by 10% and 5% respectively this year; retail rents are expected to rise by 3%. In order to reflect the downward cycle of the market, Damo generally expanded the net net output net value discount forecast for Hong Kong real estate shares and adjusted the target price from a 9% increase to a 36% reduction. Among them, the reduction$WHARF REIC (01997.HK)$Target price is 28% to HK$29.
Big motorcycle was raised$SINO LAND (00083.HK)$As well as the rating of Jiulongcang Real Estate, they were all upgraded from “synchronizing the market” to “increasing holdings”. Damo pointed out that Sino Real Estate is well positioned in the downturn cycle of the housing market, with strong net cash flow to support higher interest income; increase in dividend payments; and absorb land savings when land prices are low; therefore, credit investment ratings were raised. Due to the preference for retail sales over other sectors, the investment rating of Jiulong Cang Real Estate was raised. Sino Real Estate's target price was raised 11%.
Regarding real estate stock dividends, Damo expects$CK ASSET (01113.HK)$and$HANG LUNG PPT (00101.HK)$Dividends will remain flat; at the same time, Jiulong Cang Real Estate will be lowered,$Fortune Real Estate Investment Trust (00778.HK)$,$Champion Real Estate Investment Trust (02778.HK)$,$SHK PPT (00016.HK)$Dividends are forecast and are expected to decline as higher interest expenses and their payout ratio policies remain unchanged.
