Hongkong Land (HKLD.SI): Pre-Blackout Call Takeaways: 7-10% Profit Recovery in ‘26E; Office Reversion Inflection from ‘27E; Interim DPS Rebalancing

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Hongkong Land (HKLD.SI): Pre-Blackout Call Takeaways: 7-10% Profit Recovery in ‘26E; Office Reversion Inflection from ‘27E; Interim DPS Rebalancing

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26 Jun 2026 03:35:15 ET │ 12 pages

Hongkong Land (HKLD.SI)

Pre-Blackout Call Takeaways: 7-10% Profit Recovery in ‘26E; Office

Reversion Inflection from ‘27E; Interim DPS Rebalancing

CITI'S TAKE

Hongkong Land hosted a pre-blackout call on 26-Jun-2026. Key takeaways: [1] HK Buy

Central office spot rent had rebounded 10% from bottom of Oct last year, driving -

5%/flat reversion in ’26/27E; [2] HK retail rental underpinned by tenant sales surge Short-Term View: Upside

and +ve reversion from new flagship stores; [3] exploring Singapore investment Price (25 Jun 26 17:06) US$7.28

opportunities to grow SCPREF platform, with no imminent deals expected; [4] Target price US$9.88Suntec REIT stake was opportunistic, with potential recycling in future; [5] 1H26

profit at est.7-10%yoy increase (restated 1H25: US$233mn excluding build-for- Expected share price return 35.7%

sell); [6] one-off interim DPS rebalancing (from US$0.06 to est.US$0.08-0.09) is Expected dividend yield 3.6%

planned to align with its previous practice of paying out 1/3 during 1H, while FY DPS Expected total return 39.4%guidance remains at mid-single-digit growth (we est.US$0.26). Beyond DPS and

buyback, shareholder return is also supported by an earnings upcycle that stems Market Cap US$15,584M

from HK office recovery, HK retail reinvestment, SH Westbund, cost savings on

portfolio-centric reorganization, and potential inorganic drivers. Maintain Buy.

HK: office spot rent +10% & flat reversion in ‘27E; retail shows strong momentum Price Performance

— We expect stable 1H26 contributions from HK Central portfolio, as higher retail (RIC: HKLD.SI, BB: HKL SP)