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Nicholas Sallnow-Smith (middle), Chairman of The Link Management, George Hongchoy (right), Executive Director and Chief Executive Officer of The Link Management , and Andy Cheung (left), Executive Director and Chief Financial Officer of The Link Management, announced the unaudited interim results of The Link REIT for the six months ended 30 September 2014.
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Highlights for the six months ended 30 September 2014 Robust Financial Results Total revenue HK$3,830 million ↑ 9.6% Strong Operating Performance Solid Financial Position Notes: The board of directors (the “Board”) of The Link Management Limited (“The Link Management”), as manager of The Link Real Estate Investment Trust (“The Link REIT”; Hong Kong stock code: 823), today announced the unaudited interim results of The Link REIT for the six months ended 30 September 2014. Total revenue grew by 9.6% to HK$3,830 million and net property income rose 10.6% to HK$2,783 million. The Board approved an interim distribution (including a discretionary distribution) of HK89.56 cents per unit, an increase of 11.6% over the same period last year. Nicholas Sallnow-Smith, Chairman of the Board of The Link Management, said, "While remaining focused on realising the growth potential of our portfolio in Hong Kong, recent changes to our investment mandate and the Hong Kong REIT Code allow us to take further the diversification of our asset base, and improve the prospects for income growth. Our effort to be a market leader in all aspects of our work has been recognised in the form of international awards, and our inclusion in numerous global and local indices whether it relates to corporate governance, environmental performance or our performance as an employer.” George Hongchoy, Chief Executive Officer of The Link Management, said, "Though some economic indicators may suggest a slowing economy, the resilient nature of our business of providing non-discretionary products and services has enabled us to maintain a steady growth in revenue.” “During the period under review, the asset enhancements of Hoi Fu Shopping Centre and Mei Lam Commercial Centre were completed. Asset enhancement of Yau Oi Commercial Centre and its integration with On Ting Commercial Complex, our largest project since listing, will be completed later this year. We have already planned for a continuous asset enhancement pipeline running to 2020. Asset enhancement is an ongoing process to improve and create value. Lung Cheung Plaza, which had completed a minor refurbishment in 2008, is currently undergoing repositioning works to meet the growing demand of shoppers in the district.” Our innovative fresh market strategy has transformed outdated and dilapidated wet markets into modernised fresh markets which offer new tenant mix and enhanced synergy with adjoining shopping centres, while preserving an iconic element of Hong Kong culture. The Link REIT’s portfolio underwent several notable changes during the six months under review. The newly acquired Lions Rise Mall, coupled with The Link REIT’s two nearby properties - Wong Tai Sin Plaza and Lung Cheung Plaza, creates a retail cluster with synergistic effect to serve a wider range of shoppers. We completed the disposal of four properties, and accepted tenders to sell another five properties, to be completed in December 2014. Sale price exceeds the asset’s appraised value in each of these nine disposals. Following the change to its investment mandate, The Link REIT is identifying and assessing new property investment opportunities in Mainland China. Each opportunity will be approached with due diligence to ensure accretive growth. The Link REIT will become a constituent stock of the Hang Seng Index, with effect from 8 December 2014. It is ranked first among REITs in the East Asia region, according to the latest 2014 Global Real Estate Sustainability Benchmark (GRESB) survey. The interim results presentation file can be downloaded here. |