The Board of Directors (the “Board”) of Link Asset Management Limited
(“Link Asset Management”), as manager of Link Real Estate Investment Trust
(“Link”; Hong Kong stock code: 823), today announced the unaudited interim
results of Link for the six months ended 30 September 2017. Total revenue grew
by 7.4% to HK$4,949 million and net property income rose 9.5% to HK$3,767 million.
The Board approved an interim distribution of HK 121.50 cents per unit, an
increase of 8.7% over the same period last year.
Nicholas Allen, Chairman of the Board of Link Asset Management, said,
“The resilience of our portfolio is exemplified by our consistent growth
despite the weak retail market in recent years. During the past six months, we continued
this trend. On the back of this, positive growth of Hong Kong’s overall retail
market for the first time since 2014 should be cause for cautious optimism for
Link’s business outlook. We are undertaking a strategic review to identify ways
to optimise the portfolio quality and maximise value for unitholders. Our
objective is to investigate how to better utilise our growth drivers and
position Link for growth over the next 10 years and beyond.”
Six asset enhancement projects were completed during the period,
including Lung Hang Commercial Centre, T
Town (formerly known as Chung Fu Plaza), Cheung Wah Shopping Centre, Kwong Fuk
Commercial Centre, Fu Tung Market and Tin Tsz Shopping Centre. In addition to improving
the overall shopping experience and ambience, the enhancement of T Town's north
wing have upgraded the mall’s trade mix by increasing the number of shops and
introducing new tenants.
Our holistic asset management model seeks to unlock additional value
from each property by increasing operational efficiency, enhancing resource
allocation and improving the customer experience. Given the positive results of
the 12-month pilot of this management model, demonstrated in the enhanced
interfacing with both internal and external stakeholders, the model has been
extended to the entire portfolio with effect from 1 October 2017.
Our three properties in Mainland China continued their strong
performance and contributed net property income of HK$310 million during the
period, representing a 33.6% year-on-year increase.
Scheduled to start operations by the end of 2017, the majority of the tower
at 700 Nathan Road has been leased, with committed tenants including clinics, a
general retailer, a co-work/business centre, a beauty centre and office users.
Offering a lifestyle destination for young connected shoppers, the property's
podium has also secured an anchor tenant. This is another example of Link’s
innovative approach which positions this property as a multi-faceted place that
truly belongs to shoppers and tenants, instead of a conventional shopping
centre.
Following the announcement of J.P. Morgan as an anchor tenant at The
Quayside, our commercial development in Kowloon East, we continue to identify
and target tenants in banking and finance, as well as from multinational
corporations and professional services firms.
Link recently became a signatory of the Principles of Responsible
Investment, which, together with our active contributions to various United
Nations working groups, ensures we maintain a long term value-creating strategy
to benefit our stakeholders.
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