[ET Net News Agency, 20 January 2020] DBS Group Research lowered its target price for
Prosperity REIT (00808) to HK$3.53 from HK$3.79 and maintained its "buy" rating.
Despite weaker leasing demand from SMEs led by the US-China trade war, Prosperity REIT's
portfolio occupancy remained steady at 97%, the research house said.
Rental reversion, however, should moderate to 2-3% in 2H 2019 from 1H's 8.8%. This
should result in a 5% rental reversion for the full year of 2019. In 2020, leases covering
about 38.7% of floor area are scheduled for a rollover with reversionary growth expected
to turn largely neutral.
Prosperity Millennia Plaza in North Point should continue to outperform the portfolio
given steady office demand in Island East led by continued office decentralisation, DBS
noted. (KL)