Morgan Stanley published a research report raising its basic earnings per share forecasts for SWIREPROPERTIES (01972) for fiscal years 2025 to 2027 by 11%, 1%, and 2% respectively, reflecting the latest first-half results, recent progress in capital recycling, updated forecasts for commercial property leasing and occupancy rates, and revised expectations for development property contract sales and bookings. The firm also increased its full-year dividend forecasts for fiscal years 2025 to 2027 by 0.2%, implying year-on-year dividend growth of 4.7%, 4.5%, and 4.5% respectively during the period. The firm noted that due to the company's gradually improving operating environment, it raised the target price by 11% from HK$18 to HK$20, while maintaining an "In-line" rating. Morgan Stanley stated that due to oversupply in office space and declining demand, the continued negative impact keeps the firm cautious about Hong Kong's office market. However, SWIREPROPERTIES' growing recurring income base from new commercial properties in mainland China, capital recycling measures, and strong balance sheet should help withstand downward pressure.