Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT, stock code: 823), today announced the interim results for Link REIT for the six months ended 30 September 2025.

Duncan Owen, Chair, said:

"In a complex macroeconomic landscape, Link REIT delivered resilient 2025/2026 interim results. Despite significant challenges, we remained focused on operational efficiency and asset enhancement, which have already yielded meaningful progress. Link’s primary strength is still owning and managing retail assets in Hong Kong and the wider Greater Bay Area, and other locations in APAC such as Singapore and Australia. We continue to focus on this strength whilst also expanding our real estate investment capabilities, focused on value-add strategies and higher returns. We are starting to see signs that the market and consumer sentiment are improving in a number of APAC locations including Hong Kong, though rental income growth will take time to materialise.

As we transition our leadership team, I would like to express our sincere gratitude to George Hongchoy, our Group Chief Executive Officer, for his outstanding leadership and contributions over the past 16 years as he prepares for retirement. I look forward to working closely with the interim leadership team, including Kok-Siong Ng and John Saunders, to continue driving the business forward.”

George Hongchoy, Group Chief Executive Officer, said:

“The first half of the financial year has been marked by persistent macroeconomic headwinds and sector challenges, particularly in Hong Kong and the Chinese Mainland. While our results reflect these pressures, I am grateful for the dedication of our teams, whose efforts have enabled us to maintain resilient results and healthy occupancy across our portfolio. Active management, operational efficiency and streamlining efforts in the first half have helped to reduce operating costs and preserve margins. At the same time, we continue to explore investment opportunities, particularly in Singapore and Australia, while also looking into opportunities to divest and recycle assets.”

Speaking about his retirement, Mr Hongchoy added:

“It has been my pleasure to serve as Group CEO and to have played a part in this remarkable Hong Kong success story. During the 20 years since its inception, Link has transformed from a single-market, single-asset-class operator into one of Asia’s leading real estate investors and managers with presence in five markets. It has grown through various market cycles and in the face of challenges. The success that we have realised, both financial and in terms of community impact, has been built on a simple vision; to serve and improve the lives of those around us. I wish the very best to our Board and all our colleagues as Link moves forward to the next phase. Together, we have built a robust platform that is fit for the challenges ahead.”

Overview

Link REIT delivered a set of resilient interim results amid macroeconomic and market-level challenges across its operating regions. While revenue and NPI declined year-on-year, the Group maintained strong occupancy across its markets.

Financial

• Revenue and NPI decreased by 1.8% and 3.4%, to $7,023 million and $5,178 million, respectively, mainly due to negative rental reversions in the Hong Kong and the Chinese Mainland segment, reflecting headwinds in the macro environment and retail sector. 
• Net finance costs were 7.3% lower year-on-year, supported by a more favourable interest rate environment, particularly lower Hong Kong Interbank Offered Rate (HIBOR) during the reporting period
• Total distributable amount dropped by 5.6% to $3,283 million. Distribution per unit (DPU) for the year dropped 5.9% year-on-year to 126.88 cents
• Net gearing ratio as at the end of September was 22.5%

Financial Highlights

Hong Kong portfolio

Hong Kong’s retail sector is showing early signs of recovery after a prolonged contraction. Although heightened e-commerce promotions continue to weigh on some non-discretionary categories in the near term, the broader market has demonstrated resilience.

While the recovery in consumer sentiment is progressing, it may take time for this to be fully reflected in rental income. Given Link REIT portfolio’s focus on non-discretionary retail, the rebound could be more gradual compared to operators with greater exposure to discretionary segments.

During the reporting period, revenue and NPI of the Hong Kong portfolio registered a decline of 2.4% and 3.7% year-on-year, respectively, mainly attributable to negative rental reversions and higher operating costs.

As at 30 September 2025, Link REIT’s retail portfolio in Hong Kong continued to maintain a solid occupancy rate of 97.6%, with more than 345 new leases signed during the reporting period. This reflects the value of our well-positioned community-focused assets and effective asset management strategies. The average monthly unit rent was $62.1 per square foot (psf), showing a modest decline from $63.3 psf recorded on 31 March 2025. Rental reversion rate was negative 6.4%.

Tenant sales recorded a narrowed year-on-year decline of 2.1%, while the rent-to-sales ratio remained stable at a sustainable 13.0%. Among retail segments, supermarket and foodstuff categories posted modest growth of 0.5%. However, the overall performance was offset by a 6.0% decline in general retail.

In response to evolving consumer demand, Link undertook asset enhancement projects at Lei Yue Mun Plaza and TKO Spot during the reporting period, investing $59 million and $21 million and are expected to deliver return on investments (ROIs) of 14.5% and 29.1%, respectively. Alongside these larger-scale projects, Link also carried out several smaller enhancements in other properties in the Hong Kong portfolio. Capital expenditure of around $519 million has been designated for projects that are in the planning and statutory approval stages. The asset enhancement projects underway account for a total capital expenditure of $112 million and are anticipated to be completed between June and November 2026.

Located in the centre of Anderson Road Quarry District, The Anderson will be developed into a community commercial asset consisting of 12,936 square metres gross floor area. Construction is progressing smoothly, with the main concrete structure now completed. Pre-leasing activities are underway, and the project is on track for completion in FY2026/2027.

Revenue from car parks and related business was largely flat year-on-year. A decline in the number of tickets was compensated by upward adjustments to parking tariffs for both monthly and hourly car parks. Monthly income from car parks declined by 0.6% compared to last year, while hourly income grew by 1.8%. Revenue per car park space per month rose by 0.1% year-on-year, reaching $3,386.

Link enhanced operational efficiency by implementing smart parking systems that streamlined operations and enabled innovative initiatives such as dynamic pricing and diversified services. It reflects Link’s commitment to innovation and customer-centricity in maintaining competitive, adaptive parking facilities.

The Quayside, Link REIT’s flagship office property in Kowloon East, recorded a high occupancy rate of 99.6% as at 30 September 2025, despite the prevailing vacancies in Kowloon East’s office sector. The Quayside is well-positioned to capitalise on the flight to quality trend with its attractive location, top-tier amenities and green building certifications.

Chinese Mainland portfolio

Market headwinds exerted pressure on total revenue and NPI of Link REIT’s Chinese Mainland portfolio, which recorded a year-on-year decrease of 4.6% and 4.9%, respectively, in Renminbi terms. While rental pressure persists in some assets, Shenzhen, Guangzhou and Shanghai are faring slightly better. However, Beijing continues to face challenges, reflecting muted consumer confidence and a slower recovery in discretionary spending.

As at 30 September 2025, the Chinese Mainland retail portfolio maintained a stable occupancy rate of 95.9%, with more than 260 new leases signed during the reporting period. A negative rental reversion of 16.4% was recorded in the reporting period, primarily due to weaker performance at Link Plaza Zhongguancun and the retail component of Link Square. Excluding Link Plaza Zhongguancun and Link Square retail component, the portfolio recorded a positive rental reversion rate of 2.5%.

To address market challenges across its Chinese Mainland retail portfolio, Link implemented targeted leasing and repositioning strategies. These included tenant remixing at Link Plaza Zhongguancun and secured an anchor tenant at Link Square to preserve occupancy and stabilise income.

Link continued to optimise asset quality to drive sustainable growth. Major asset enhancement initiatives were conducted at Link Plaza Tianhe and Link Plaza Tongzhou with the total capital expenditure of RMB 381 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.

In addition, Link invested RMB36 million in several smaller-scale projects, including reconfiguration of retail space at Link CentralWalk and Link Plaza Liwan, renovations at Link Plaza Qibao (Level 4 and 5), and improvements to the basement area of Link Plaza Zhongguancun. These works achieved an average ROI of 9.0%.

As at 30 September 2025, Link Square in Shanghai remained steady boasts an impressive occupancy rate of 96.0%, outperforming the district average and underscoring its resilience in the face of ongoing new office supply and rising market vacancy.

The average occupancy rate of Link REIT’s Chinese Mainland logistics assets stood at 96.6% as at 30 September 2025. Our competitive locations helped sustain occupancy, driven by demand from third-party logistics providers.

Overseas portfolio

Link REIT’s international portfolio spans retail and office assets in Australia, Singapore and the United Kingdom. Revenue and NPI increased by 4.7% and 0.8% to $929 million and $605 million, respectively. 

Link REIT’s Australian retail portfolio delivered a robust rental reversion of 16.3% and maintained a healthy occupancy rate of 98.1%. Tenant sales rose by 15.3% year-on-year, with notable growth in the apparel and accessories, as well as electronics and lifestyle sectors, reflecting solid consumer demand. Link remains optimistic about retail consumption in Australia, underpinned by population growth, rising household incomes, and positive consumer sentiment.

In Singapore, the retail assets Jurong Point and Swing By @ Thomson Plaza maintained strong performance with a 99.8% occupancy rate and a positive rental reversion rate of 12.9%, supported by demand for suburban retail and strategic location advantages. Tenant sales recorded a temporary uplift, driven by the SG60 promotional campaign and government voucher distribution. However, sales are expected to normalise following the end of voucher distribution.

The international office portfolio’s resilience is underpinned by a relatively long weighted average lease expiry of approximately 4.7 years, with an overall occupancy rate of 87.0%. As tenants in Sydney and Melbourne favour premium assets in core locations, the leasing team is proactively canvassing prospective tenants to maximise occupancy and capitalise on emerging opportunities in available spaces. Negative pressure on effective office rents is set to ease, due to an anticipated slowdown in construction pipeline. 

The Canary Wharf office market is exhibiting signs of a turning point, with a modest recovery underway and leasing momentum gradually strengthening.

Capital Management

Link REIT continued to enjoy a solid capital base and liquidity position during the period under review. Gross gearing increased modestly to 24.1% as at 30 September 2025 from 23.1 % as at 31 March 2025. Net gearing ratio was 22.5% as at 30 September 2025.

As at 30 September 2025, total debt (in face value) increased to $55.0 billion, and 65.8% of the debt portfolio comprised fixed interest rates. Average all-in borrowing cost for the reporting period further improved to 3.22% from 3.58% for the full year ended 31 March 2025. Debt maturity averaged at 2.9 years and was well staggered over the coming 13 years.

The announcement of Link REIT’s interim results has been posted on the HKEX news website.

Note: All dollar amounts are in Hong Kong dollars unless specified otherwise.

Appendix:

Interim Results Presentation

-End-

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 also aims to leverage its investment management capabilities to serve as a trusted investment manager to capital partners through its business line, Link Real Estate Partners.

Building on its strong track record over almost two decades, Link targets to deliver resilient returns and growth to its unitholders. Link offers a “REIT plus” investment case through its strategic focus on diversifying the Link REIT Portfolio across geographies and asset classes in APAC and expanding its investment management business.

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/en/.