Hong Kong Property Faces a Trust Deficit
With this year’s unrest weighing on developer shares, more should consider packaging their prize assets into REITs.
The choicest properties don’t tend to find their way into Hong Kong REITs.
Photographer: Jerome Favre/Bloomberg
Hong Kong property companies, whose shares have been beaten down amid this year’s protests, are missing an opportunity to unlock value for shareholders. More should consider packaging their trophy assets into real estate investment trusts to release capital and improve the market’s view of their prospects.
The Hang Seng Properties Index has slumped more than 17% from an April high as the unrest disrupted business, deterred home buyers and caused tourists and shoppers to stay away. The broader Hang Seng Index has lost 11%. Many real estate companies are trading at a steep discount to the value of their underlying assets.