CITIC Lyon: Raising the target price of Lingzhan Real Estate Fund (00823) to HK$51.5, reaffirming the “outperforming the market” rating

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that CITIC Lyon released a research report stating that it raised the target price of the Lingzhan Real Estate Fund (00823) by 6.2%, from HK$48.5 to HK$51.5, reaffirming the “outperforming the market” rating.

Lingzhan Real Estate Investment Trust completed another disposition of non-core assets, ahead of schedule. Just over three months after Thomson Plaza, the 100 Market Street deal highlights its accelerated recovery of capital from non-core assets and a greater focus on its core Asia Pacific retail platform while providing new funding for unit buybacks. The bank estimates that the combined capital of this transaction and the Thomson Plaza transaction can support the repurchase for about 5.3 months. At the current rate, this will provide significant support for the unit price.

Management said that the sale of China's logistics asset portfolio and The Cabot is still ongoing, which indicates that there will be greater momentum for capital recovery in the future and may bring more returns to shareholders.