[ET Net News Agency, 31 July 2020] Goldman Sachs lowered its target price for Wharf
REIC (01997) to HK$37.6 from HK$38 and maintained its "buy" rating.
The research house said Wharf REIC has reportedly made offers to certain tenants in
Harbour City that in order to enjoy some tenant relief measures for the month of May (40%
rental concession), tenants would need to clear their outstanding payables up to June, and
also to extend the lease term to at least end-2021.
Goldman thinks it makes sense for retail landlords to be more proactive in lease
restructuring to (1) protect occupancy and lock in key tenants, and also (2) reduce cash
collection uncertainties amid the process; however, this may bring more near-term downside
to rental revenues as this would frontload the lease negotiation which may otherwise
happen at a later point in time.
Goldman revised its FY2020-22 EPS forecasts down by 2-3% for marking-to-market the
operating run rates. (KL)
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01997 WHARF REIC
Nominal 
23.050 +0.050 (+0.217%) Research Report
31/07/2020 17:37
{I-bank focus}Goldman cuts Wharf REIC (01997) to HK$37.6
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