HK Land

HK Land: Credit Suisse reiterates its preference for Central office landlords, including Champion Reit, HK Land and Swire Properties. Expects higher rental upside to offset the impact of yield expansion. In the last three yield expansion cycles, CS notes property value for Central Grade A office has gone up by 33%, 4% and 102% respectively, as the impact of rental growth surpassed that of yield movement. JLL data shows effective rent for Central Grade A office has gone up by 1% qoq in 2Q13 - the first datapoint showing concrete recovery since 3Q11. Ytd, the expansion in Central has been underpinned by banking and finance tenants.