Highlights (for the financial year ended 31 March 2011):
- Revenue HK$5,353 million ↑ 7.3%
- Net property income HK$3,644 million ↑ 9.5%
- Full year distribution per unit HK110.45 cents ↑ 13.4%
- Net asset value per unit HK$24.63 ↑ 31.9%

Retailers Providing Strong Support
- Strong composite reversion rate 21.4%
- Overall occupancy rate ↑ to 91.5%
- Contribution from asset enhancement initiatives ↑ to 37.4%
- Net property income margin improved ↑ to 68.1%

Capital Management Significantly Strengthened
- Gearing ratio ↓ to 15.1%
- Effective interest rate ↓ to 3.72%
- Strong credit ratings A(S&P) /A2 (Moody’s)
- No major refinancing until 2014 Available liquidity HK$2.41 billion

Note : Comparisons are based on 31 March 2010 figures. Where appropriate, certain figures have been restated as a result of the early adoption of the amendments to the Hong Kong Accounting Standard 12 “Deferred Tax: Recovery of Underlying Assets”.

The board of directors (“the Board”) of The Link Management Limited (“The Link Management”), as the manager of The Link Real Estate Investment Trust (“The Link REIT”; Hong Kong stock code: 823) today announced the audited consolidated final results of The Link REIT for the financial year ended 31 March 2011, and reported a Total Distributable Income (“TDI”) of HK$2,458 million for the year (2010: HK$2,134 million). The Link Management’s current policy is to distribute to Unitholders 100% of The Link REIT’s TDI. With an interim Distribution Per Unit ("DPU") of HK52.86 cents and a final DPU of HK57.59 cents, total DPU for the year amounted to HK110.45 cents, an increase of 13.4% over previous year (2010: HK97.37 cents).

Positive rental reversions, higher occupancy rates, increasing contributions from completed asset enhancement initiatives (“AEIs”) and improving trade mix were the key revenue growth drivers for the retail properties in the year under review. Overall average monthly unit rent rose 7.2% to HK$32.8 per square foot (2010: HK$30.6) while overall occupancy rate reached 91.5%, indicating an increase of 0.9% (2010: 90.6%). Car park revenue rose 3.9% year-on-year to HK$1,044 million (2010: HK$1,005 million), with utilisation rate improved to 75.0% (2010: 71.8%). Gearing ratio was reduced to 15.1% as at 31 March 2011 (2010: 19.7%, as restated). During the year, Moody’s Investors Service upgraded The Link REIT’s credit rating from A3 to A2 with stable outlook, while Standard and Poor’s affirmed The Link REIT’s corporate rating at A with stable outlook.

The year under review marks The Link REIT’s fifth anniversary as a publicly listed entity. From its initial public offering in November 2005 to the end of March 2011, The Link REIT has delivered to investors a compound average annualised total return of 21.3%, being a combination of capital appreciation and distributions paid out.

Mr Nicholas Sallnow-Smith, Chairman of the Board of The Link Management, said, “We have achieved another year of strong operating results. In the first five years since our listing in November 2005, we have delivered an outstanding return for our Unitholders. Our Vision, Mission and Values will form the base on which we can build a sustainable business, as we continue to grow our business to deliver satisfactory results to all stakeholders, and to benefit the community our business serves.”

Mr George Hongchoy, Chief Executive Officer of The Link Management, said, “The Link REIT has benefited from the strong local economy in 2010. Growth in total revenue was mainly supported by the performance of the retail shops, which contributed HK$3,095 million, an increase of 8.9% from last year. This rental growth was mainly driven by the strong composite reversion rate, higher occupancy and contributions from the completed asset enhancement initiatives. As part of our overall effort to improve our service quality, we have invested more on staff and repair and maintenance. Savings in utilities expenses were made possible by, among other initiatives, adopting more energy efficient lighting systems and air-conditioning chiller systems at various properties.”

“Asset enhancement initiatives (“AEIs”) have been one of our main growth drivers. We have completed 21 AEIs so far with aggregate capex of over HK$1,600 million, and are committed to investing more capital in the coming years to improve a larger number of our retail facilities as we believe these asset enhancement projects are welcomed by all our stakeholders, including retailers, shoppers, employees, investors and the community,” added Mr Hongchoy.

In the year under review, five AEI projects with an aggregate capital investment of HK$776 million were completed. These include flagship property Lok Fu Plaza, Siu Sai Wan Plaza, Chung Fu Plaza, Tak Tin Plaza and Chuk Yuen Plaza. Lok Fu Plaza features a 110,000 square feet UNY department store and over 200 general retail shops, including about 40 eateries providing local delicacies and regional cuisines.

The Link Management has earlier announced plans to invest HK$200 million to upgrade all our barrier free access facilities. This programme is progressing in three phases with anticipated completion of the last phase in 2016.

The Link REIT’s portfolio has not only provided the platform for major retailers to serve the community but also enabled quality independent operators to grow as evidenced by the number of small retailers who started business in the portfolio and have since expanded amongst the portfolio and beyond.

Through such community engagement programmes as “Eco-terrace”, “Lok Fu History Gallery”, “Bring Art to the Community”, we have helped promote green living among members of the public and cultivate greater interest in the art and community’s cultural and historical treasures, in addition to strengthening community cohesion.

The annual results presentation file and photographs of our properties can be downloaded at this address:
http://www.thelinkreit.com/EN/news/Pages/ar_2011_photolist.aspx