Hongkong Land Likely Has Ample Financial Flexibility to Pursue More Buys

Dow Jones07-31 15:49

0749 GMT - Hongkong Land likely has ample financial flexibility to pursue further acquisitions, even as it invests around US$250 million of equity into its private fund, say DBS Group Research analysts in a note. The Singapore-listed property company's private fund agreed to acquire Wheelock Place for S$1.1 billion, which is to be funded through equity and debt, the analysts note. The company investing further equity into the fund to maintain its majority stake should result in its gearing rising by to 11.6%, which the analysts describes as comfortable. Hongkong Land's strong balance sheet should also enable it to continue its share buybacks, which would in turn support its shares. DBS retains a buy rating and US$9.89 target price. Singapore-listed shares decline 2.6% to US$8.12.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment