大行评级丨花旗：上调希慎兴业目标价至24.3港元，维持“买入”评级

Core Viewpoint - Citi's report indicates that Hysan Development's basic profit for the fiscal year 2025 is expected to decline by 2% due to rising financing costs, with a 9% drop when excluding perpetual capital securities (PCS) [1] Financial Performance - The refinancing rate for the $750 million PCS is 7.2%, contributing to the profit decline [1] - The debt-to-asset ratio stands at 32.4%, with some effectiveness in capital recycling offset by capital expenditures [1] Growth Potential - The anticipated completion of Lee Garden Phase 8 is expected to drive over 20% growth in foot traffic in 2026-2027, which may strengthen market share and boost sales for tenants [1] - This growth supports a forecasted 2% increase in rental income from renewals in 2026 [1] Rental Market Dynamics - The recovery in office building occupancy rates partially alleviates the decline in renewal rents and provides flexibility for new supply starting in the third quarter of 2026 [1] Investment Rating - Citi has raised its target price for Hysan Development from HKD 17.35 to HKD 24.3, maintaining a "Buy" rating [1]