Loading news...
Wharf Real Estate Investment Company Limited (OTCMKTS:WRFRF - Get Free Report) shares were up 2.9% on Monday. The stock traded as high as $3.2350 and last traded at $3.2350. Approximately 100 shares were traded during trading, a decline of 96% from the average daily volume of 2,491 shares. The stock had previously closed at
My rating for Wharf Real Estate Investment stays as a Hold after my assessment of its credit metrics and financial prospects. I'm worried about WRFRF's unfavorable floating-rate debt mix, even though its net gearing has improved substantially. My projections point to flattish net income growth for the company, considering retail statistics, tourism data, and trade developments.
Wharf REIC is expected to achieve solid top line expansion this year, thanks to resilient luxury retail demand and an increase in Mainland Chinese visitors for Hong Kong. The company's FY 2024 earnings are likely to be boosted by a decrease in interest costs, driven by lower benchmark interest rates and deleveraging. I revise my rating for Wharf REIC from a Hold to a Buy, as I think that the company's favorable 2024 prospects aren't fully priced into the stock's valuations yet.