Zhi Tong Cai Jing·2025-08-15 06:29Core Viewpoint - UBS reports that Swire Properties (01972) could explore the establishment of a private Real Estate Investment Trust (REIT), which would open new channels for asset recycling and potentially change investor perceptions of the company, leading to a higher valuation for the new private REITs channel [1] Group 1: Financial Metrics - UBS has narrowed the discount to net asset value (NAV) from 50% to 45%, raising the target price from HKD 23 to HKD 26.1 while maintaining a "Buy" rating [1] - The earnings forecast for 2025 to 2027 has been increased by 1% to 2% to reflect the appreciation of the Renminbi [1] Group 2: Asset Management - Since 2018, Swire Properties has disposed of assets totaling HKD 58 billion, which is approximately 4.8% of the company's current market capitalization of about HKD 121 billion, demonstrating strong capital recycling capabilities [1] - The company has already invested about 67% of its previously committed HKD 100 billion investment plan, indicating further growth potential for new projects in Shenzhen Futian and Hong Kong Admiralty [1] Group 3: Strategic Initiatives - The potential separation of assets to establish REITs could help Swire A (00019) reduce leverage and create a source of recurring fee income for the company [1]