Strong market position in residential development and commercial leasing in Hong Kong. Strong and growing recurring income. Reduced margins because of rising construction costs. Pressure from a weakening Hong Kong property market and large investments in mainland China. Increasing rental income interest coverage. Consistently strong liquidity with disciplined financial management. Disciplined land acquisitions. Continuing high debt for the rating. The stable outlook on Sun Hung Kai Properties Ltd. (SHKP) reflects our expectation that the company will continue its strong execution and achieve steady contracted sales over the next 12-24 months. We expect SHKP's expanding recurring income base to continue to grow, particularly from its increasingly established portfolio in China, and provide stability to the company's credit profile. We expect SHKP's
