09 Nov 2016
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 2016. Total revenue grew by 10.1% to HK$4,608 million and net property income rose 11.1% to HK$3,440 million. The Board approved an interim distribution of HK 111.75 cents per unit, an increase of 12.9% over the same period last year.
Nicholas Allen, Chairman of the Board of Link Asset Management, said, “Link has in place a sound and well-executed strategy that enables us to be agile to navigate through challenging periods. We have established a resilient portfolio strengthened by consistent upgrades and careful diversification both by asset type and geographic region. During the past six months, we made excellent progress to reinforce Link’s ability to maintain sustainable growth, and added over 284,000 square feet of well connected, mass market commercial space to our portfolio by acquiring 700 Nathan Road in Mong Kok.”
George Hongchoy, Chief Executive Officer of Link Asset Management, said, “By continuing to execute a proven business strategy that focuses on building a productive and resilient portfolio, Link has delivered another strong performance for the period while strengthening our position for future growth. Our expertise is in investing and upgrading shopping centres to become vibrant and welcoming properties that are integrated with communities. It is driving an increase in the number of shoppers we see daily.”
Four asset enhancement projects were completed during the period, including Tin Chak Shopping Centre, Lei Tung Commercial Centre, Butterfly Plaza and Sau Mau Ping Shopping Centre. The enhancement of Butterfly Plaza in Tuen Mun has overhauled the interior and façade of the fresh market to turn it into a new anchor for the shopping centre.
Almost fully occupied, EC Mall in Beijing and Corporate Avenue 1 & 2 in Shanghai have delivered strong performance, and contributed net property income of HK$232 million, representing a 144% year-on-year increase as Corporate Avenue 1 & 2 made full-period contribution.
Progress is underway at 700 Nathan Road in Mong Kok to transform the asset into a modern, state-of-the-art commercial space. Renovation has commenced and it is targeted to start operations around the end of 2017. Together with our LEED Platinum pre-certified commercial development in Kowloon East, these assets are integral to our long-term strategy of building a more productive and quality portfolio.
In July, Link became the first property company in Asia to issue a green bond, raising US$500 million at 2.875% fixed rate due in 2026, which establishes a direct connection between our globally-recognised ESG efforts and capital markets.
A key part of our strategy to help our tenants and communities grow while delighting shoppers, Link’s Park & Dine app recently added new services, such as cooking recipe and home delivery of fresh produce from Link’s fresh markets, in addition to teaming up with several major brands to improve the overall user experience.
Link has been an active proponent of community inclusion and accessibility for all. Our ongoing barrier-free access upgrades across the entire property portfolio are progressing well and will complete in the first half of 2017, bringing more shoppers into our properties and providing more business opportunities for our tenants.