First half results were in line with expectations, with completed developments the main driver of growth. Management has reiterated its ambition to grow funds under management to $5bn without needing additional equity.
Credit Suisse suspects the market’s reaction was not a reflection of disappointment with the result, rather it was swept up in a broader sell-off across fund manager A-REITs. Neutral maintained. Target is raised to $3.90 from $3.87.
Sector: Real Estate.
Target price is $3.90.Current Price is $3.73. Difference: $0.17 – (brackets indicate current price is over target). If HMC meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).