Hongkong Land Holdings Limited: Solid Q1 operating statement; FY26 earnings target raised

研报英文原文证据摘录

Hongkong Land Holdings Limited: Solid Q1 operating statement; FY26 earnings target raised

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Hongkong Land Holdings Limited

Solid Q1 operating statement; FY26

earnings target raised

Maintain Rating: BUY | PO: 10.10 USD | Price: 7.96 USD

FY26 earnings outlook lifted to mild growth 19 May 2026

HKL’s 1Q26 interim management statement indicates steady operational momentum, Equity

with underlying profit up c.5% YoY, supported by lower financing costs and improving

Karl Choi, CFA >>

leasing sentiment in HK. Management raised its FY26 rental earnings outlook to mild Research Analyst

growth (vs. prior “broadly unchanged”), driven by faster‑than‑expected Central office Merrill Lynch (Hong Kong) +852 3508 3108

spot rent recovery, as well as lower financing and operating costs—broadly in line with karl.choi@bofa.com

our +4% forecast. We maintain Buy, supported by a gradual recovery in HK office rents, Fan Tso, CFA >>

upside from HK retail asset revitalization, and HKL’s track record in value creation. ResearchMerrill LynchAnalyst(Hong Kong)

Valuation remains attractive at a 37% discount to NAV, in our view. +852 3508 2875

fan.tso@bofa.com

HK office negative reversion narrowed significantly

Central office rental income declined slightly YoY in Q1 due to negative rental reversions

on renewals, though trends improved through the quarter. Leasing demand for Grade‑A Stock Data

space strengthened—led by asset management, financials and tech—narrowing rental

Price 7.96 USD

reversions significantly YTD (BofAe: mid‑ to high‑single‑digit negative). Committed

Price Objective 10.10 USD

vacancy improved to 5.5% (vs. 6.0% at end‑2025), while physical vacancy held steady at

Date Established 1-Apr-2026

7.0%.

Investment Opinion B-1-7