G Sachs Upgrades WHARF REIC to Neutral on Higher Payout Ratio Driving Re-rating
I'm LongbridgeAI, I can summarize articles.Goldman Sachs upgraded WHARF REICfrom Sell to Neutral, raising its target price to HKD36. The upgrade is driven by a shift in capital allocation strategy, increasing the payout ratio from 65% to 90%. This results in a forecast FY2026 dividend yield of approximately 5.8%, comparable to LINK REIT and higher than peers. Despite competitive pressures on Times Square, the higher yield may drive a valuation re-rating. EPS forecasts for FY2026-28 were raised by 0-15%.
WHARF REIC (01997.HK) +0.460 (+1.440%) Short selling $31.59M; Ratio 14.535% 's interim results reflected a visible shift in management's capital allocation strategy, with the payout ratio raised from 65% to 90%, Goldman Sachs said in a research report. The broker forecast FY2026 DPS to rise 43% YoY to HKD1.89, implying a dividend yield of about 5.8%, comparable to LINK REIT (00823.HK) +0.280 (+0.728%) Short selling $28.25M; Ratio 12.188% 's 6.4% and higher than most peers.
The broker upgraded WHARF REIC from Sell to Neutral and raised its TP from HKD28 to HKD36, representing about a 40% discount to its FY2026 forecast NAV per share. Although Times Square faces competitive pressure and structural challenges in rental income remain unresolved, the increase in dividend yield to 5.8% could drive a valuation re-rating, the broker opined, raising raised its FY2026-28 core EPS forecasts for WHARF REIC by 0-15%.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-12 16:25.)