Morgan Stanley has released a report lowering its 2025-26 earnings forecasts for SWIREPROPERTIES (01972.HK)  +0.160 (+0.947%)    Short selling $1.41M; Ratio 19.077%   by 16-27% to reflect the latest assumptions on retail sales, rents, and occupancy rates after the company's 2024 results. Meanwhile, it raised its per-share dividend forecast by 6-10%, reflecting a mid-single-digit progressive dividend growth supported by cash flow from its core investment property portfolio, non-core asset disposals, and sales proceeds from development projects in China.

Morgan Stanley lifted its target price for SWIREPROPERTIES from HKD16 to HKD18, representing a 55% discount to 2025 net asset value and one standard deviation below the long-term historical average, as the broker believed that the office market was still facing supply-demand imbalances.

As for LINK REIT (00823.HK)  -0.050 (-0.122%)    Short selling $19.22M; Ratio 7.758%   , Morgan Stanley kept its FY25-27 earnings forecasts largely unchanged but expected distributions per unit to grow by 0.3-0.9%, reflecting the latest assumptions on retail sales, rents, and occupancy rates. The broker's target price for LINK REIT was elevated from HKD41 to HKD48 based on FY25 distribution per unit and a dividend yield spread that was 1.5% below the long-term average, assuming a 4% yield on 10-year US Treasuries.

Morgan Stanley reiterated an Overweight rating on LINK REIT, viewing it as a major beneficiary of a US interest rate downcycle and potential inclusion in Southbound Stock Connect.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-21 12:25.)