Link Real Estate Investment Trust (0823)

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08 Nov 2023

Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT, stock code: 823), has announced its interim results for the six months ended 30 September 2023.

Nicholas Allen, Chairman, said:

“We are pleased to present a set of solid performance for the six months ended September 2023. Despite the slower-than-expected recovery of retail consumption in Hong Kong and Mainland China, our portfolio continues to recover and has demonstrated resilience with stable rental income and high occupancy. The expansion of our portfolio has lifted our net property income by a double-digit percentage increase, making us one of the few REITs in the region that can report both increase in income and total distribution. We remain steadfast in our commitment to bringing investors stability and sustainable growth with their investments.”

mehr https://www.linkreit.com/en/media/news-releases/resilient-pe…

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Evtl. wird das Gap noch geschlossen.

Net Asset Value HK$73.98
https://www.linkreit.com/en/investor-relations/

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Präsentation vom 5.10.
https://www.linkreit.com/-/media/linkreit/investor-relations…

Zur Bonität S.18
S&P: A (Stable)
Credit Rating
Moody’s: A2 (Stable) Fitch: A (Stable)



SL ca. 35

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Euromoney Global Real Estate Awards 2023

Hong Kong's best investment manager - Link Real Estate Investment Trust

https://www.euromoney.com/article/2c8jxiwfl5wxy7jin2whs/awar…

Heute Zukauf, Währungsrisiko abgesichert
Neuer SL 35,5

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M.E. unterbewertet

TP of HK$57.30

Auszug DBS Group Research - Equities21 Jun 2023

"Investment Overview
A leading and geographically diversified APAC REIT. As the largest listed REIT in Hong Kong, Link REIT’s portfolio comprises mainly of neigbourhood malls in Hong Kong, representing >50% of its total portfolio valuation. The REIT is thus well-positioned to capture the post-COVID retail market recovery in Hong Kong. Since 2015, Link REIT has been exploring acquisition opportunities outside Hong Kong to diversify its earnings base and augment distribution growth. Following the latest acquisition in Singapore, its total portfolio valuation has reached >HK$240bn, spanning 5 regions. Recent equity funding should further strengthen its war chest to pursue value-accretive acquisitions when opportunity knocks. But prolonged interest rate hikes remain a challenge for executing its acquisition growth strategy.

Moving towards post-COVID recovery. Thanks to robust tenant sales recovery, reversionary growth of Link REIT’s Hong Kong retail portfolio remained solid at 7.1% in FY23. Overall occupancy cost ratio further improved to 12.5% in FY23, below pre-COVID levels. This, coupled with the post-COVID retail market recovery, should underpin continued retail reversionary growth in Hong Kong in FY24. Moreover, its China counterpart is seeing tenant sales growth gradually recovering towards pre-COVID levels, with positive rental reversions expected to resume in FY24.

Sustained retail market recovery to drive share price higher. As the largest suburban mall landlord in Hong Kong, Link REIT is well poised to capture the improving domestic consumption led by the economic recovery, which should support its earnings growth and share price performance.

BUY with DDM-based TP of HK$57.30. Link REIT is trading at 5.9-6.2% distribution yields for FY24-25, the highest since May-09. Corresponding yield spreads stand at 2.4-2.7%, against its 10-year average of 2.4%. Valuation is inexpensive, even allowing for prolonged interest rate pressure. Our target price is based on Discounted Dividend Model (DDM) using a discount rate of 7.1%.


Key risks:
Any derailment in Hong Kong retail market recovery should be a drag on its rental income. Any prolonged interest rate upcycle would adversely affect its distribution and valuation.

https://www.dbs.com.sg/treasures/aics/archive/templatedata/a…

NET ASSET VALUE
HK$73.98

Auszug Präsentation vom 31.5
S.8


.
https://www.linkreit.com/-/media/linkreit/investor-relations…

SL 36

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Company Overview

Link Real Estate Investment Trust is a Hong Kong-based real estate investment trust (REIT). It is also a constituent of the Hang Seng Index. The investment objectives of the Fund are to deliver sustainable growth and to create long-term value for its unitholders. It invests in a portfolio of properties, including retail facilities, markets, car parks and offices in Hong Kong, Beijing and Shanghai. Its investment properties include Destination Shopping Centers in Hong Kong, Community Shopping Centers in Hong Kong, EC Mall in Beijing and Corporate Avenue in Shanghai, among others. The Fund is managed by Link Asset Management Limited.