Broker Name: DBS Bank (Hong Kong) Limited
Date of Report: 28 July 2026
Excerpt from DBS report.

Report Summary

Key Actionable Ideas:

• Link REIT (823 HK): BUY rating. Target Price: HKD43.65. Link REIT is recommended as a “safe bet” amid interest rate volatility, supported by ongoing unit buybacks and attractive distribution yields (6.5–6.4% for FY27–28F). Its earnings are less sensitive to HIBOR movements due to lower gearing and higher hedging ratio. Investors are advised to focus on Link REIT for buyback support and resilient performance.
• Swire Properties (1972 HK): BUY rating. Target Price: HKD30.38. Swire Properties is highlighted as a long-term value play, trading at a 55% discount to appraised NAV and offering estimated dividend yields of 5.4–5.6% for FY26–27. The company’s pipeline of new retail-led mixed-use developments across Beijing, Shanghai, Sanya, and Xi’an is expected to drive earnings and dividend growth. Investors are encouraged to consider Swire Properties for its attractive entry point and medium- to long-term growth potential.

Highlights:

• Hong Kong commercial property sector fundamentals are improving, with a gradual recovery in rental income expected for both retail and office segments.
• Interest rate volatility (HIBOR) introduces uncertainty, but Link REIT and Swire Properties have relatively lower earnings sensitivity to rate movements compared to peers.
• Among landlords and REITs, Link REIT and Swire Properties are preferred due to their defensive qualities, attractive valuations, and potential for dividend and earnings growth.
• Other noteworthy recommendations: Hang Lung Properties, Hongkong Land, Hysan Development, and Wharf REIC are also rated BUY, but Link REIT and Swire Properties stand out for immediate actionable insights.

Implications & Analysis:

• Investors seeking stability in a volatile rate environment should prioritize Link REIT, given its ongoing buybacks and defensive positioning.
• Swire Properties offers compelling long-term value, especially after its recent share price correction, making it suitable for investors looking for growth and income.

Above is an excerpt from a report by DBS Bank (Hong Kong) Limited. Clients of DBS Bank (Hong Kong) Limited can access the full research report from the broker’s website.
DBS Bank (Hong Kong) Limited research website