I'm tempted now it's fallen this much...anyone else monitoring it?
I'm tempted now it's fallen this much...anyone else monitoring it?
It is all a set of falling knives in my opinion.
Also, better quality (than Wharf) available in HK & globally if you're looking at property stocks / REITs - in my opinion.
While many (if not most) of the HK property companies/REITs are trading at recession level discounts to NAV, IMHO buying in right now requires a degree of optimism that the violence and general civil unrest affecting Hong Kong will be resolved in the not too distant future.
Then there's "The Hong Kong Human Rights and Democracy Act" which will unquestionably do major damage to Hong Kong's economy if/when enacted - and even the threat of it being enacted will be enough to tilt business activities away from Hong Kong.
Then again, historically Hong Kong has been a very resilient city - recovering from many threats and challenges from the Communist Riots of the 1960s through to the Asian Financial Crisis and SARS (the GFC being a comparatively minor event in HK).
Link to the SCMP article ** mentioned is here: https://www.scmp.com/business/compan...hen-hong-kongs
It saddens me Wharf Holdings 004.HK keeps cutting their dividends.
Until 2017 they had an interesting average dividend growth rate.
Now I see payout ratio going up and dividends falling.. not good in my book
honestly on a macro perspective, the key thing to look at is how hk and china relationship has changed..
HK, even resilient, were always a middle man over the years..
middle man for trade, middle man for money flow, now most of the financial services provided here cater to the actual business and economy (not the parasitic service economy) elsewhere of asia..
if the trust and relationship between china and hk has changed, then it will lead to fundamental rebalancing of the value of assets in hk.. which one can try to bet on but if i am not a gambler i would rather wait and see...
Small in the context of a REIT this size, but possibly indicative of what is to come (either for landlords or co-working space operators):
PRC Co-working Startup KR Space Breaks Time Square's Lease, Folds HK BizAASTOCKS Financial News - Top News
KR has been breaking a lot of leases around town. What I see happening is these REITs dedicating a subsidiary of theirs to run a co-work space. Not sure if Swire was doing this ages ago in Taikoo in the guise of a startup incubator.
Wharf up from $17 to $22 now - will the recovery last?
In terms of other developers, Kowloon Development (34) yielding almost 8% atm.
Something to do with the Takeovers Code. Could be interesting.
WHARF HOLDINGS, WHARF REIC, WHEELOCK Halt Trading AM, Pending M&A Ann