Wharf REIC's Singapore Asset Sale Could Enhance 2027 Earnings

Dow Jones
07/31

0714 GMT - Wharf Real Estate Investment's sale of a Singapore mixed-use commercial building for around 6.7 billion Hong Kong dollars is likely to enhance its earnings, say DBS Group Research analysts in a note. The deal's net proceeds are likely to be used for debt repayment, trimming financing costs and boosting Wharf REIC's balance sheet, the analysts say. They estimate the deal to boost Wharf REIC's 2027 earnings by around 0.5%. The disposal is also likely to help narrow its discount to its net-asset value, they say, noting the stock is trading around 56% discount to its current assessed NAV. Its valuation remains attractive amid an improving Hong Kong retail scene, they add. DBS maintains its buy rating and HK$29.20 target price. Shares rise 0.3% to HK$26.44.

 

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