Elevator Pitch
I maintain my Neutral rating on Hong Kong-listed commercial property landlord Wharf Real Estate Investment Company Limited (OTCPK:WRFRF) [1997:HK] or Wharf REIC.
Headwinds persist for Wharf REIC in the first half of the year. Wharf REIT's underlying net profit fell by -26% YoY to HK$3,844 million in 1H 2020, due to rising vacancy rates, rent relief, lower turnover rent, and weak rental reversions. Wharf REIT's 2H 2020 outlook remains bleak, unless social distancing measures in Hong Kong are eased and international travel restrictions are lifted. Also, the company's tough negotiation tactics