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 Good rental income interest coverage Consistently strong liquidity Prudent financial management with disciplined land acquisitions Potential pressure on leverage from volatility of property markets The stable outlook on Sun Hung Kai Properties Ltd. (SHKP) reflects S&P Global Ratings' 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
