CLSA has released a research report maintaining a "Outperform" rating on WHARF REIC (01997) with a target price of HK$40. This target represents a 38% discount to the 2026 forecast net asset value of HK$64.60, a discount narrower than the five-year average by one standard deviation.

CLSA noted that the company's first-half 2026 results exceeded expectations, with the dividend payout ratio significantly increased from 65% to 90%. The interim dividend per share rose 42% year-on-year to HK$0.94. This reflects management's efforts to enhance shareholder returns by converting previously non-distributable profits into distributable cash flow following the sale of Singapore's Wheelock Place.

CLSA highlighted that WHARF REIC has been designated as the firm's top pick in the Hong Kong property sector since March 2026. This is supported by significant exposure to the recovery cycle of Hong Kong luxury home sales, combined with recent favorable actions for minority shareholders. These factors are expected to help narrow the discount to net asset value and drive a revaluation.