Landlords will drift 5
Summary 5
Merely a temporary bounce 6
Aggressive rental outlook priced in 7
Physical rental shows no signs of bottoming out: lower
rental outlook from -20% to -30 to -35% in 2009 8
Stock implications: lower NAVe on lower rental assumptions 11
Sector outlook: Underweight; we prefer REITs 12
Summary of company highlights: 13
Hong Kong REITs 15
REITs more attractive than bonds 15
REITs underperform HSI 15
Quantifying DPU expectations 16
H-REIT valuations and sector outlook attractive 17
Company highlights 18
Hongkong Land 19
Hysan 22
Great Eagle 25
Link REIT 28
Champion REIT 30
Appendix 32
Recent Grade A office transactions 33
Disclosure appendix 34
Disclaimer 39
Contents