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大行评级|花旗:下调越秀房产信托基金目标价至1港元 维持“中性”评级

Major bank rating: Citigroup lowers the target price of Yuexiu Real Estate Investment Trust to HK$1 and maintains a neutral rating.

Gelonghui Finance ·  Aug 15 22:11

Citigroup stated in a research report that although the weak performance of the office business under the Yuexiu real estate investment trust fund was offset by the resilience of hotel, retail business and financial costs, it is expected that it will take some time for the distribution per fund unit to recover. The bank said that the office business of Yuexiu REITs continued to face pressure, and the company is expanding its tenant base to manage its investment portfolio. However, due to the declining rental rates of Guangzhou Yuexiu Financial Building (82.9%) and Shanghai Yuexiu Building (84.6%) and a 10% drop in rent for Wuhan Yuexiu Financial Center, the bank expects rental pressure on office buildings other than Guangzhou International Financial Center to remain at a high level. The office market and macroeconomic prospects are expected to take some time to recover. The bank also expects the financing cost of Yuexiu REITs to have peaked and to fall back.

Citigroup lowered the target price of Yuexiu REITs from HK$1.1 to HK$1, maintained a "neutral" rating, and believes that its inclusion in the Shanghai-Hong Kong Stock Connect may benefit Yuexiu REITs.

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