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G Sachs Upgrades WHARF REIC to Neutral on Higher Payout Ratio Driving Re-rating
2026-08-13 12:06:08
WHARF REIC (01997.HK)'s interim results reflected a visible shift in management's capital allocation strategy, with the payout ratio raised from 65% to 90%, Goldman Sachs said in a research report. The broker forecast FY2026 DPS to rise 43% YoY to HKD1.89, implying a dividend yield of about 5.8%, comparable to LINK REIT (00823.HK)'s 6.4% and higher than most peers.

The broker upgraded WHARF REIC from Sell to Neutral and raised its TP from HKD28 to HKD36, representing about a 40% discount to its FY2026 forecast NAV per share. Although Times Square faces competitive pressure and structural challenges in rental income remain unresolved, the increase in dividend yield to 5.8% could drive a valuation re-rating, the broker opined, raising raised its FY2026-28 core EPS forecasts for WHARF REIC by 0-15%.
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AASTOCKS Financial News
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