Citigroup: Wheelock Properties (01997.HK) reports strong interim results, with the payout ratio rising to 90%.

According to the Zhichun Finance App, Citigroup has released a research report stating that Wharf Real Estate Investment (01997.HK) has maintained a 65% payout ratio since its listing in 2017 to support deleveraging. With the reduction of debt and capital management, it is expected that net debt will decrease to approximately HKD 20 billion by the end of 2026, with a debt ratio of around 11%. The management has decided to increase the payout ratio by 25 percentage points to 90% starting in 2026, resulting in a year-on-year increase of 42% in the interim dividend per share to HKD 0.94, which is a significant positive surprise. Citigroup maintains a "Buy" rating on Wharf Real Estate Investment, with a target price of HKD 31.6, based on a 45% discount to the estimated net asset value per share of HKD 57.45 in 2026.