[ET Net News Agency, 19 February 2021] UOB Kay Hian lifted its target price for
Champion REIT (02778) to HK$4.66 from HK$4.55 and maintained its "hold" rating.
The research house said Champion REIT's 2020 DPU (distribution per unit) of 25 HK cents
(down 6.1%) is in line with UOBKH's expectations. Weak retail sales and the absence of
tourists were the key reasons dragging the overall performance with LP Mall's contribution
declining by 17.3%.
A structural change in office demand and intense competition in the Central area will
lead to another round of rent cuts by landlords to maintain occupancy rates. UOBKH lowered
its 2021 DPU forecast by 5.5% as it factored in later-than-expected rental income recovery
for the retail and office segments. (KL)