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Link Asset Management Limited has today announced annual results for Link REIT for the year ended 31 March 2026. The photo shows T Town, a Link's mall.
Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT, stock code: 823), has today announced annual results for Link REIT for the year ended 31 March 2026.
Duncan Owen, Chair, said:
“We have been listening carefully and reflecting on the views of our Unitholders and other stakeholders. Our response has been to go back to basics with a focus on our key competitive advantages as owners and operators of retail malls and car parks in APAC. Our immediate focus is now reinvigorating the existing core portfolio, divesting of non-core assets and buying back units where pricing is attractive to drive unitholder returns."
Ng Kok Siong, Executive Director and Chief Financial Officer, said:
“We responded to headwinds by focusing on disciplined cost control and proactive capital management. By optimising our costs in anticipation of rebased rental levels, we have been able to provide some protection to Unitholder returns. We maintained a robust balance sheet, conservative gearing and strong liquidity, underpinned by diversified funding sources and effective interest rate management. These fundamentals are critical as we continue to position the business for both resilience and future success.”
John Saunders, Executive Director and Chief Investment Officer, said:
“Since taking up the leadership of Link on 1 January, Ng Kok Siong and I have refocused the strategy on going back to basics. This means ensuring that our malls continue to meet the needs of the communities that they serve, and we have a number of initiatives aimed at enhancing the competitiveness of our core retail and car park assets and responding to structural changes including e-commerce. In terms of capital allocation, it is also about back to basics and focusing on our cost of capital. Around 5-10% of our overall portfolio is considered non-core and we are undertaking a thoughtful process to divest such assets at an appropriate time. If capital is deemed surplus to near-term requirements and our unit price is at an attractive valuation, we will buy back units to drive Unitholder returns. We will also be allocating some of the capital from sales towards investment in our core mall portfolio.”
Financial Highlights
Hong Kong portfolio
Hong Kong’s retail sector has begun to show early signs of recovery due to gradually improving tourist arrivals, coupled with more favourable labour market conditions. However, the rebound has been uneven, with recovery steepest in discretionary segments and tourism-driven categories while non‑discretionary sales have grown at a more measured pace. Competitive pressure from Chinese Mainland e-commerce platforms, particularly through promotional activities, continued to weigh on non-discretionary categories throughout the year, though this pressure showed some moderation toward year-end, as reflected in a narrower decline in tenant sales within the general retail category.
Revenue and NPI of the Hong Kong portfolio registered declines of 3.0% and 4.6% year-on-year, respectively, primarily driven by negative rental reversions and elevated operating costs.
As at 31 March 2026, retail occupancy remained high at 97.8%, supported by a defensive tenant mix and stable demand from daily-needs retailers. Average monthly unit rent moderated to $60.1 per square foot (psf) from $63.3 psf last year. Portfolio rental reversion was negative 8.2% for the full year.
Tenant sales decline narrowed to 1.0% year‑on‑year, an improvement from last year, while the rent‑to‑sales ratio eased slightly to 12.7%. By segment, food & beverage(F&B) delivered 1.2% year‑on‑year sales growth, while supermarket and foodstuff recorded a modest decline of 0.5%. General retail sales declined by 3.6%, though the rate of contraction narrowed compared with last year.
During the year, Link signed over 587 new leases across the portfolio. Leasing momentum was led by learning and interest classes, specialty restaurants, as well as game and family entertainment operators, reflecting evolving consumer preferences. Tenant retention rate remained strong, with around 80% staying.
As e‑commerce continues to reshape retail dynamics, the portfolio is being evolved to place greater emphasis on in-person experiences such as F&B outlets, fitness centres and education/elderly centres, alongside the expansion of lockers and pick up options, including Link Collect, Link’s proprietary pickup and fulfilment service which launched its first store in April 2026, which aims to meet community needs, sustain footfall, encourage ancillary spend, and gain insights into e-commerce trends.
Link undertook asset enhancement projects at Lei Yue Mun Plaza, TKO Spot and Yat Tung Shopping Centre during the year, investing $59 million, $21 million, and $67 million respectively, with estimated returns on investment (ROI) of 14.5%, 29.1% and 10.6%, respectively.
Capital expenditure of around $600 million has been designated for projects that are in the planning and statutory approval stages. Separately, the asset enhancement projects underway account for a total capital expenditure of $54 million and are anticipated to be completed between May and September 2026.
Facility management contracts across retail and car park operations have been consolidated under an integrated facility management model as part of broader efforts to strengthen cost discipline. This also improves operational efficiency.
Located in the centre of Anderson Road Quarry District, The Anderson is a community commercial asset consisting of gross floor area of over 139,000 square feet. Construction is progressing on schedule, with interior fit-out works underway. Pre-leasing activities are advancing well, and the project remains on track for completion in 2026/2027, with launch expected in the second half of the year.
Car parks and related business revenue was broadly flat, edging slightly down by 0.2% year-on-year. Hourly rental income rose 2.3% year-on-year, supported by enhanced promotional initiatives, including the One Link Pass, as well as the rollout of dynamic pricing. This was partially offset by a 1.0% year-on-year decline in monthly rental income.
The Quayside, an office building in Kowloon East held through a joint venture, recorded an occupancy rate of 99.6% as of 31 March 2026, outperforming the broader Kowloon East office market.
Chinese Mainland portfolio
Total revenue and NPI of Link REIT’s Chinese Mainland portfolio recorded a year-on-year decrease of 5.1% and 5.8%, respectively, in RMB terms which was mainly attributable to negative rental reversions. In Hong Kong dollar terms, after currency conversion, the year-on-year decreases in total revenue and NPI were 3.0% and 3.7%, respectively.
The occupancy rate within Link REIT’s Chinese Mainland retail portfolio was 96.6% as at 31 March 2026. A negative rental reversion rate of 14.3% was recorded in the year.
Link implemented focused leasing initiatives and asset repositioning to address intensified competition, resulting in modest improvements in daily footfalls and tenant sales (excluding electric vehicles).
More than 174 new brands were introduced to the portfolio, with leasing efforts deliberately focused on trades aligned with current consumption preference, including trendy lifestyle, IP-related retail and casual dining options, reinforcing the portfolio's relevance and appeal to today's consumers.
Major asset enhancement initiatives were conducted at Link Plaza Tianhe and Link Plaza Tongzhou, with total capital expenditure of RMB381 million for both phases for the former delivering an ROI of 10.7%, while the latter delivered an ROI of 10.0% on a capital expenditure of RMB63 million.
As of 31 March 2026, the Shanghai office asset maintained a steady occupancy rate of 95.7%, despite ongoing new supply and escalating market vacancy.
The logistics portfolio in the Chinese Mainland consists of five assets located near key transportation hubs in tier-one cities within the Greater Bay Area and the Yangtze River Delta. The average occupancy rate was 97.9 % as at 31 March 2026.
Overseas portfolio
Total revenue and net property income of overseas portfolio increased by 4.8% and 2.7% to $1,867 million and $1,236 million, respectively.
The Australia retail portfolio delivered a robust rental reversion of 16.5%, with a healthy occupancy rate of 99.5% as of 31 March 2026.
In Singapore, the retail assets Jurong Point and Swing By @ Thomson Plaza maintained strong performance with a 98.2% occupancy rate and a positive reversion of 12.3%. AMK Hub, a third‑party‑owned property managed by Link, continued to achieve near-full occupancy with healthy rental reversions broadly in line with market levels.
On 8 April 2026, Link entered into agreements with Jack Investment Pte Limited and Pangjwee Development Pte Limited for the sale of its property interests in Swing By @ Thomson Plaza, a retail property located in Singapore, for a total consideration of S$250 million. Proceeds from the divestment are intended to be used for unit buybacks.
The international office portfolio has a relatively long weighted average lease expiry of 4.5 years with overall occupancy at 87.7%.
Capital Management
Link REIT continued to enjoy a solid capital base and liquidity position during the year. Gross gearing increased to 25.6% as at 31 March 2026, from 23.1% as at 31 March 2025. Net gearing ratio also increased to 23.9% as at 31 March 2026, from 21.5% as at 31 March 2025, mainly due to the reduction in the property portfolio valuation.
As at 31 March 2026, total debt (in face value) increased to $56.7 billion from $53.5 billion as at 31 March 2025, and 60.0% of the debt portfolio was maintained at fixed interest rates. Average all-in borrowing cost for the full year ended 31 March 2026 further improved to 3.44% from 3.58% a year earlier. Debt facility maturity lengthened to 3.5 years as at 31 March 2026, from 2.8 years a year earlier, and is well staggered over the next 12 years.
Outlook
While rent levels are stabilising, negative rental reversions in the Hong Kong retail portfolio are expected to persist in 2026/27 at levels broadly in line with 2025/26, reflecting the tail end of a leasing cycle during which rents were higher than current levels.
Link is confident that, by rebasing staff and general and administrative costs with expected annualised savings of more than $200 million, carefully managing financing costs, driving new revenue initiatives to help partially offset the impact of negative rental reversions, divesting non‑core assets and accelerating unit buybacks, it will be able to keep earnings stable and protect DPU in the year ahead.
Link focuses on ensuring that DPU and future growth are underpinned by solid earnings and a strong balance sheet. Link remains passionate about mid‑ to long‑term outlook, supported by the strong fundamentals of its core business and clear signs of market stabilisation and rising consumer confidence, while remaining mindful of the possible impact of geopolitical and macroeconomic instability.
Capital recycling remains a key priority of Link’s strategy. Link aims to explore value realisation opportunities as well as to strategically exit non-core assets.
The announcement of Link REIT’s annual results has been posted on the HKEX news website.
Financial Highlights for the year ended 31 March 2026 can be downloaded here.
Note: All dollar amounts are in Hong Kong dollars unless specified otherwise.
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About Link Asset Management Limited
Link Asset Management Limited (Link) is a leading, independent, and fully integrated real estate investor and manager focusing on the APAC region. It manages Link Real Estate Investment Trust (Link REIT, Hong Kong stock code: 823), one of the largest REITs in Asia, and its real estate investment portfolio.
Link focuses on its strengths and track record in owning and actively managing shopping malls and car parks in the key markets across Asia Pacific, namely Hong Kong, tier-one cities of the Chinese Mainland, Singapore and Australia. Link is also committed to develop new capital partnerships where Link may co-own and/or manage third party capital, as well as exploring value-add opportunities which provide further diversification and help to enhance returns and unitholder value.
Link aspires to be the trusted partner in APAC real estate sector for unitholders, capital partners, tenants, and the wider communities it serves.
For more information about Link, please visit https://www.laml.com.