GO
| HSI1 | 24,557.04 | +108.09 | 178.17B |
| HSCEI1 | 8,265.81 | +5.66 | 57.75B |
| Back Zoom + Zoom - Block Traded | |
|
2026-11-10 13:15:28 UBS published a research report stating that under the new Mainland land-use rights renewal policy, WHARF HOLDINGS (00004.HK), KERRY PPT (00683.HK), HENDERSON LAND (00012.HK) and HANG LUNG PPT (00101.HK) could face the largest potential impact. The bank estimates that if developers renew all Mainland investment properties for 20 years today and amortize the related premium over the remaining land-use rights term, the annualized renewal premium would be equivalent to 10% to 29% of their annual dividends. The bank noted that after considering the maturity structure of investment property portfolios, KERRY PPT, HANG LUNG PPT and Henderson Land Development face the most urgent pressure, as most of their core portfolios have less than 20 years of remaining land-use rights. If extended by another 20 years today, the annualized land premium would be equivalent to 6% to 8% of forecast 2027 dividends. The bank believes the market has yet to fully reflect the potential cash outflows brought by the new policy. More Hong Kong developers may also consider monetizing assets through China real estate investment trusts (C-REITs), especially non-luxury projects with more than 20 years of remaining land-use rights, to reduce the risk of future cash expenditure related to land-use rights extensions. Based on the bank's methodology, if all Mainland investment properties were renewed today, the attributable renewal premium for most Hong Kong developers would amount to about RMB4 billion to RMB17 billion. Among them, KERRY PPT and HANG LUNG PPT would see the greatest relative impact on equity value, with renewal premiums estimated at about 19% and 10% of NAV respectively. Extending only projects with less than 20 years of remaining term by 20 years, the land premiums for HANG LUNG PPT, KERRY PPT, HYSAN DEV (00014.HK) and HENDERSON LAND would be about RMB2.6 billion, RMB2.4 billion, RMB1 billion and RMB5.8 billion respectively, equivalent to about 4%, 4%, 3% and 3% of their respective NAVs. The bank believes developers with larger exposure to Mainland investment properties, particularly HANG LUNG PPT and KERRY PPT, could face valuation downgrades. HENDERSON LAND also faces more urgent renewal pressure as 42% of its Mainland leasing portfolio has less than 10 years of remaining land-use rights. (ad/)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |