“We are cautious on Hong Kong office and expect rents to drop 5% in 2024, even though Hongkong Land has higher occupancy than peers,” say the analysts in their Jan 4 report on the Hong Kong property sector.
Morgan Stanley Research analysts Praveen Choudhary and Jeffrey Mak have downgraded their call on Hongkong Land to “equal-weight” from “overweight” previously amid a weak Hong Kong office outlook.
Despite buyback support from management, the analysts have also lowered their target price to US$3.80 ($5.05) from US$5.90 before. Hongkong Land extended its buyback programme till the end of 2023. It has a total capital return of around 10%.
