Lyon: Upgraded the target price of Wharf Real Estate Investment Company Limited (01997.HK) to HKD 42.2. Significant improvement in shareholder returns supports the reevaluation.

According to the Zhihui Finance APP, Credit Lyonnais has released a research report stating that Wharf Real Estate Investment Company (01997.HK) has raised its dividend payout ratio from 65% to 90%, which comes as a surprise. Additionally, the sale of Kowloon Plaza has driven per-share dividend growth, demonstrating the management's determination to enhance shareholder returns. The company currently offers shareholder return characteristics similar to those of real estate investment trusts. Importantly, management has stated that it has no intention of lowering the dividend payout ratio. The target price has been adjusted from HK$40 to HK$42.2, reiterating the "Outperform" rating and considering it a top pick.