[ET Net News Agency, 13 January 2020] UBS Global Research lowered its target price for
Wharf REIC (WREIC)(01997) to HK$39.6 from HK$42.1 and downgraded its rating to "sell" from
"neutral".
The research house said WREIC's share price has rebounded 12% since 4 September 2019,
making it the best performance among Hong Kong's landlords. UBS believes the market has
not priced in prolonged retail downcycle for the next three years.
UBS noted a persistently uncertain political environment, a lack of policy support from
the central government, and an ongoing rebound of luxury spending into China.
It believes Harbour City and Times Square could suffer from declining retail rent,
either from rental concession or a change in the tenant mix, from high-end luxury products
to more local mass-markets/F&B/entertainment offerings. (KL)