HK Land

HK Land: Macquarie maintains O/p, TP US$8.11. Note that SG will drive the step up in FY13 residential earnings and expect positive office rental reversions to continue. Capital commitments of >US$1.3bn. trading at 0.66x 31 Dec 2012 book value of US$11.11 vs a long-run average P/B of 0.73x. Share price is implying a >36.5% fall in investment property values or a trailing net property income yield of 4.8% for the investment property portfolio.