Hongkong Land: Pivoting from recycling to growth

Research evidence excerpt

Hongkong Land: Pivoting from recycling to growth

J P M O R G A N Asia Pacific Equity Research

30 July 2026

Hongkong Land Overweight

HKLD.SI, HKL SP

Pivoting from recycling to growth Price (29 Jul 26):$8.29

Price Target (Jun-27):$10.70

Since the strategic review in 2024, the investment theme in HKL has Mainland China/Hong Kong Property

predominantly been about “capital recycling”, but we believe this year is a & Conglomerates

thematic pivot where HKL is finally back to a “growth” narrative. To achieve the Karl Chan AC

2035 target of doubling underlying EBIT, we believe the growth will come from (852) 2800-8513

both organic and inorganic drivers. Organically, most core businesses are on track karl.chan@jpmorgan.com

for recovery/growth: (1) HK office - bottoming out with rental reversion turning Venus Choi

neutral in 2027 & positive in 2028 (Figure 7HKL’sCentraloficeportfolioaveragenetrentvs.overalCentralGrade-Aofice); (2) HK retail - positive rental uplift (852) 2800-8599

from Tomorrow’s Central with the peak of rental disruption to be over in 2027 venus.choi@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

(Figure 9HKL-LANDMARKretailportfolioaveragerent); (3) Singapore office - continual positive rental reversion (Figure 10HKL-Singaporeoficeaveragegrosrent(S$psf/month)); Morgan Broking (Hong Kong) Limited

(4) Mainland China - positive reversion with outperforming tenant sales growth

(1H26: +9% vs. China +1% - Figure 11HKL-MainlandChinamalportfolio1H26tenantsalesY/Ygrowthvs.Chinaretailsales), with increasing contribution from

Key Changes (FYE Dec)Westbund Central and other new malls. Inorganically, with US$3.7bn of capital

recycled and the formation of SCPREF in February 2026, this provides more Prev Cur Δ

DPS - 26E ($) 0.26 0.27 2.9%