[ET Net News Agency, 20 January 2020] DBS Group Research lowered its target price for
Hysan Development (00004) to HK$32.35 from HK$34.1 and maintained its "hold" rating.
The research house said tenants' sales of Hysan's retail portfolio fell broadly in line
with the overall market in 3Q 2019, which recorded an 18% drop in total retail sales
value. This led to an occupancy cost ratio rising to 23-24% from 1H 2019's 18%.
Given dwindling tenants' sales, turnover rents for 2H 2019 should be substantially
lower. Coupled with rental concessions offered to those tenants impacted by the prolonged
protests, DBS projected retail income to be slightly lower in FY2019. (KL)