Core Viewpoint - Morgan Stanley's report indicates that Kowloon Development (01997) has shown improvement in rental income for the first half of the year, but management remains cautious about the outlook for the second half, anticipating a low single-digit decline in retail renewal rents, which aligns with market expectations [1] Group 1: Financial Performance - Rental income for Kowloon Development improved on a half-year basis [1] - Management expects a slight improvement in rental income for the second half, benefiting from a decrease in HIBOR, which reduces financing costs [1] - Morgan Stanley forecasts a 1% and 2% growth in earnings per share and dividends for the fiscal year 2025, respectively [1] Group 2: Management Insights - Management reported an improvement in retail sales since May, with Harbour City merchants outperforming the market average [1] - However, management believes it is necessary to observe for a few more months to confirm if the market has fully bottomed out [1] Group 3: Future Plans - The company is evaluating an asset enhancement plan for its Marco Polo hotels, with a total capital expenditure of approximately HKD 2 billion [1] - The full renovation is expected to start as early as the end of 2026, with a temporary impact of 5% to 6% on rental income during the enhancement period [1]

Core Insights - Citigroup's report indicates that Kowloon Development's half-year profit demonstrates resilience, with core net profit remaining flat at HKD 31.19 billion [1] - Core earnings from investment properties and hotels increased by 3% year-on-year to HKD 31 billion, accounting for 55% of Citigroup's full-year forecast [1] - The company recorded a book loss of HKD 24 billion in the first half, primarily due to a fair value loss of HKD 51 billion on investment properties, with valuations of Harbour City and Times Square declining [1] - Kowloon Development declared an interim dividend of HKD 0.66 per share, representing a 3% year-on-year increase, with a payout ratio maintained at 65% [1] - Citigroup maintains a "Buy" rating on the company, with a target price of HKD 25 [1]

Core Viewpoint - Citigroup reports that the earnings of Wharf Real Estate Investment Company show resilience, with a flat underlying net profit of HKD 31.19 billion in the first half of the year [1] Financial Performance - Core earnings from investment properties and hotels increased by 3% year-on-year to HKD 31 billion, accounting for 55% of the bank's full-year forecast (52% for the first half of 2024) [1] - The company reported a book loss of HKD 24 billion, primarily due to a fair value loss of HKD 51 billion on investment properties (with a projected fair value loss of HKD 44 billion for the first half of 2024) [1] - The valuation of Harbour City decreased by 1.8%, while Times Square saw a decline of 3.9% [1] Dividend Declaration - The company declared an interim dividend of HKD 0.66 per share, representing a 3% year-on-year increase, with a maintained payout ratio of 65% based on core profits from Hong Kong investment properties and hotels [1] Investment Rating - Citigroup maintains a "Buy" rating on the company, with a target price set at HKD 25 [1]