HK Land

HK Land: Macquarie maintains Outperform rating post FY10 results, raises TP to US$7.80 from US$7.60. Says current share price implies >20% fall in invmt property portfolio values despite HKL maintaining conservative asset values using cap rates of 4.5% for selected properties, higher than peers...

Notes also that HKL could see substantial positive rental reversions from next yr - its HK Central office portfolio expiry profile is declining (FY11 HK$107/sf/mth, FY12 HK$82, FY13 HK$7 , vs Jones Lange Lasalle forecasts of over 50% growth over the next 3 yrs (FY11 HK$116, FY12 HK$129, FY13 HK$142).