Citi has released a research report stating that Wharf REIC (01997) management announced an increase in its dividend payout ratio from 65% to 90%, with the interim dividend surging 42% to HK$0.94 per share, delivering a significant positive surprise to the market. The bank maintains its 'Buy' rating for WHARF REIC, raising the target price from HK$31.6 to HK$36. It has also initiated a 90-day positive catalyst watch, reflecting increased confidence in a retail lease renewal rental inflection point and expectations of a potential sale of Singapore's Scotts Square in the second half of the year. The bank further believes that management's inclination to redevelop the Marco Polo Hong Kong Hotel could enhance long-term value and bring additional floor area.
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