JPMorgan Chase released a research report noting that the management of WHARF REIC (01997), often viewed by the market as "perennially cautious," has shifted its outlook on the operating environment to "optimistic," surprising the market. This marks the first time in years that the company has shown such high confidence, suggesting the most difficult period has passed.

Meanwhile, the company unexpectedly revised its dividend policy, raising the payout ratio from 65% to 90%. The bank has upgraded its rating on WHARF REIC from "Neutral" to "Overweight," significantly increasing the target price from HK$23 to HK$35.7.

JPMorgan pointed out that despite a higher base in the second half of this year, it expects tenant sales at Harbour City to maintain year-on-year positive growth and outperform the broader market. The bank also anticipates that the renewal rent adjustment ratio could turn positive by the 2027 fiscal year. With the diminishing drag from Times Square on performance, the company is projected to achieve a compound annual growth rate of 4% in earnings from fiscal 2025 to 2028.