HK - Commercial Properties & REITs

HK - Commercial Properties & REITs

Postby winston » Thu Nov 25, 2010 9:58 am

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DJ MARKET TALK: UOB Continues To Favor HK Landlords Vs Developers

0922 [Dow Jones] UOB KayHian continues to favor HK landlords over HK developers, not only due to policy risk faced by latter, but also landlords' relative fundamental strength.

Says HK's role as major offshore CNY center will bring new business opportunities; sector offering shelter against policy risk "is only icing on the cake".

Continues to favor landlords exposed to Central CBD; tips Swire Pacific (0019.HK), trading only 3% above last upcycle's peak, vs Hongkong Land's 33%, as top Buy; also Champion REIT (2778.HK), offering 5.0% dividend yield, is defensive play for conservative investors.

Both stocks rated Buy, target prices HK$139.68, HK$5.45, respectively. Swire ends +0.1% at HK$118.10, Champion REIT down 0.2% at HK$4.37.


Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Tue Dec 07, 2010 12:09 pm

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DJ MARKET TALK: HK Commercial Ppty Market Appears More Active-JPM

1139 [Dow Jones] JPMorgan says while HK residential transactions volume has slowed down, commercial property market appears to have turned more active as non-residential transactions are not subject to special stamp duty.

Notes HK residential primary transaction remained low recently with about 18 units sold in HK primary market in week ended Dec. 5, vs 19 units sold week before, but HK retail sales, rents continue to benefit from influx of mainland tourists.

Shares of some HK landlords faring better vs developers with Hysan (0014.HK) +1.3% at HK$35.65, Wharf (0004.HK) +5.8% at HK$57.95; while Cheung Kong (0001.HK) down 0.3% at HK$114.70, Sino Land (0083.HK) down 1.5% at HK$15.84, Hang Lung Properties (0101.HK) down 1.1% at HK$35.55.

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Fri Dec 10, 2010 3:45 pm

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DJ MARKET TALK: HK Office Rents To Rise 40% By End-2012 -UBS

1502 [Dow Jones] UBS maintains a positive outlook for the HK office sector, due to strong demand from both foreign and domestic firms, especially from those newly established hedge funds and "commercial banks which have expanded their headcounts in the Treasury operations in view of the rapidly expanding offshore China yuan business in HK."

The house keeps its bullish office rent forecast, it expects central office rents to rise by 40% by end-2012.

Its top picks are Hongkong Land (H78.SG) and Hysan (0014.HK). HK Land shares are down 0.7% at US$7.09, Hysan down 1.6% at HK$34.30.


Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Thu Dec 16, 2010 12:29 pm

Not vested. Shouldn't you be selling when things never had it better ?

DJ MARKET TALK: HK Landlords Outperform;"Never Had It Better"-UOB

1158 [Dow Jones] HK property stocks are down but the landlords and REITs are generally outperforming: Wharf (0004.HK) is up 0.4% at HK$55.75 and Champion REIT (2778.HK) is flat at HK$4.58 vs the property sub-index is down 0.6%.

UOB KayHian says HK landlords "have never had it better," enjoying the double benefits of asset inflation and a secular uptrend in the office market that could last for years; the house has a bias towards office exposure in Central CBD, hence it advises Buy Hongkong Land and Champion REIT.

On the other hand, the house says, with the HK government's unprecedented determination to curb home prices, "it is only apt to assign a higher risk premium" to the property developers sector, capping upside to stocks.


Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Jan 05, 2011 3:50 pm

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DJ MARKET TALK: HK 2011 Office Rentals Tipped 15%-20% Higher-Citi

1519 [Dow Jones] Citigroup estimates HK office rentals can grow a further 15%-20% in 2011 and its uptrend should be maintain in 2012 and beyond on very low new supply together with a continued recovery in the HK economy.

Still, "we believe share prices of landlords have already priced in our estimated 2011 growth so further upside needs to be justified by a more bullish view on commercial properties post-2011."

Citi adds, given HK office rentals lag when compared to salary increases of highly-paid individuals and the rise in luxury residential property prices, it believes office rental/price should see "a continuous re-rating" which would drive more upside after our expected 15%-20% increase in 2011.

Citi's top buys among HK landlords are Hysan Development (0014.HK), HK Land and Hang Lung Properties (0101.HK).

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Mon Jan 10, 2011 3:36 pm

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DJ MARKET TALK:HK Grade A Office Rent Rise Accelerates In Dec-UBS

1416 [Dow Jones] UBS notes Hong Kong's Grade A office rent rises accelerated in December, with rents in premium Central reaching HK$159 psf/month, driven by the strong corporate expansion demand and the lack of new supply; it adds that rents in premium Central/traditional Central/Causeway Bay / Tsim Sha Tsui / QuarryBay/ Kowloon East were up as well.

UBS says while the outperformance in November-December of landlord stocks may enter a consolidation phase (and the house prefers developers with high office/retail sensitivity such as SHK Properties (0016.HK) and Sino Land (0083.HK)), it remains bullish on landlords, with top picks being HK Land and Hysan Development (0014.HK).

Hysan rated Buy by UBS with a HK$59.70 target. The stock is down 1.7% at HK$38.00 midday.

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Mon Jan 17, 2011 9:45 am

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DJ MARKET TALK: HK Landlords' Good Time Unmatched In History -UOB

0906 [Dow Jones] The HK landlord sector is enjoying the double benefits of asset inflation (which in turn is due to a combination of the undervalued HKD and low interest rates) and a secular uptrend in the office market that "could last for years," says UOB KayHian; "this favourable backdrop for the sector is unmatched any time in history."

The house adds that HK landlords continue to be its preferred sector in the Greater China property universe, over HK developers and China developers, despite the sector already outperforming.

UOB rates Champion REIT (2778.HK) and Swire Pacific (0019.HK) at Buy, with target prices of HK$5.45 and HK$139.68 respectively.

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Tue Jan 25, 2011 9:55 am

DJ MARKET TALK: HK Landlords' Outperformance Could Reverse - DBS

0924 [Dow Jones] Despite trading at above mean valuations, HK landlord stocks "still offer upside" driven by NAV growth, led by higher commercial property prices, says DBS Vickers.

But the house says the sector's relative outperformance over HK developers, which are trading at average valuations, "could reverse" once major residential project launches resume.

Cheung Kong (0001.HK) remains one of DBS' preferred developers as the stock is "a cheap proxy" for Hutchison Whampoa (0013.HK) and the potential CNY-denominated REIT listing of China rental properties should help improve sentiment towards the stock.

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Feb 09, 2011 10:18 am

DJ MARKET TALK: Strong Performance In HK REITs To Continue 1Q-UOB

0946 [Dow Jones] UOB KayHian notes HK REITs have outperformed the overall stock market and other property stocks in the past couple of months, due to a combination of reasons; these include displacement from the residential sector which has been hampered by tightening measures both in HK and China.

It adds landlord stocks have become expensive after the strong rally and the REITs offering cheaper inroads into the HK retail and office rental markets. It expects the strong performance in HK REITs to continue at least in 1Q11.

"Retail sales are booming and new demand for office space remains strong. Rental growth is very visible in the next two years."

At the pre-open, Champion REIT (2778.HK) is down 0.4% at HK$4.75 and GZI REIT (0405.HK) is flat at HK$4.39.

Source: Dow Jones Newswire
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Re: HK - Commercial Properties & REITs

Postby winston » Thu Mar 10, 2011 3:59 pm

DJ MARKET TALK: Rate Hike Biggest Threat To HK Landlords - UOB

1525 [Dow Jones] Hysan Development's (0014.HK) post-results fall, with the stock down 5.5% at HK$33.75, perhaps should be taken within the context that the ultra low interest rate environment may be coming to an end.

UOB KayHian says the biggest threat now to the HK landlords sector is interest rate hike, which will directly push up cap rate; it adds, although U.S. bond yield has eased somewhat from its recent high in early-February, the rate trend has clearly reversed and the question is how fast rates will rise.

The house says when cap rate starts to rise, this normally signifies the peaking of office property value.

"When that happens, investors will demand a lower target valuation to compensate for the unfavourable market outlook."

Swire Pacific (0019.HK) is down 2.3% at HK$112.60, Wharf (0004.HK) falls 2.0% to HK$51.90.

Source: Dow Jones Newswire
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