[ET Net News Agency, 13 March 2020] Morgan Stanley lowered its target price for Swire
Properties (01972) to HK$27 from HK$30 and maintained its "overweight" rating.
The research house sees flattish ex-disposal underlying EPS and DPS in 2020. Despite
lower retail rental and hotel profits, office rental is resilient. Singapore residential
project, EDEN, is ready to launch and could support earnings.
Morgan expects the company to maintain a stable DPS even if earnings decline in 2020,
given a strong balance sheet. It expects Swire Properties to see neutral or mildly
positive rental reversion despite declining market rent. This is because spot rents are
still 10-15% higher than rents for leases signed three to four years ago. (KL)