Tear Sheet: Sun Hung Kai Properties Ltd.

We expect Sun Hung Kai Properties Ltd.?s (SHKP) attributable contracted sales in Hong Kong to reach HK$23 billion–HK$25 billion in fiscal 2024 (year ending June 30, 2024), down from HK$33.4 billion in fiscal 2023. This is primarily due to delayed launch of its Shap Sze Heung project to fiscal 2025, as against our original expectation of a launch in fiscal 2024. As such, we expect SHKP to have limited room for debt reduction in fiscal 2024 from fiscal 2023 levels. We expect SHKP's rental income to grow moderately in fiscals 2024 and 2025 due to the contribution from new offices and malls in mainland China. Weakness in Hong Kong offices and headwinds for the city?s retail market could temper the

...Foreign currency issuer credit rating A+/Stable/-- Local currency issuer credit rating A+/Stable/-- Business risk Excellent Country risk Low Industry risk Intermediate Competitive position Excellent Financial risk Intermediate Cash flow/leverage Intermediate Anchor a Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Positive (no impact) Comparable rating analysis Positive (+1 notch) Stand-alone credit profile a+...

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