2Q21 Results Wrap-Up And 2H21 Sector Outlook

Property stocks under our coverage reported impressive earnings recovery in 2Q21, and are still on track to meet our full-year estimates. Although near-term earnings are likely to weaken due to the impact of the new wave of COVID-19 infections, we believe there will be pent-up demand in 4Q21 as the pandemic situation improves. We reiterate our view that the worst for the sector has passed and recovery is on its way. Maintain OVERWEIGHT. Our top picks are AP and LH.