[ET Net News Agency, 29 December 2020] Citi Research lowered its target price for
Champion REIT (02778) to HK$3.66 from HK$4.18 on lower rental growth assumptions. It also
downgraded its rating to "sell" from "neutral".
Being a proxy for Central office-focused companies, Champion REIT is expected to see a
prolonged DPU (distribution per unit) decline in 2020-22 (-8% CAGR), given the research
house's expectations of a continuous decline in Central office rents on rising office
supply, coupled with a long-term negative impact on office demand as the work-from-home
trend gathers pace.
With 55% of its GAV (gross asset value) in Central office and 13% in Mongkok office,
Citi expects its 3 Garden Road/Langham Place office spot rents to still be subject to a
10%/5% decline per annum in 2021 and 2022. Its FY2021 dividend yield at 4.9% also seems
unattractive on Citi's structural negative outlook on the office segment. (KL)
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02778 CHAMPION REIT
Nominal 
1.740 -0.030 (-1.695%) Others
29/12/2020 17:17
{I-bank focus}Citi downgrades Champion REIT to HK$3.66
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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