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 2025.

Duncan Owen, Chair, said:

"The 2024/2025 financial results of Link REIT are solid, demonstrating resilience amid uncertain macroeconomic conditions and growing business challenges. To be successful in this climate, Link will need to be ever more adaptable, resilient, agile, and focused on core fundamentals that succeed regardless of the cycle. Taking what is within our scope of control, we must remain laser-focused on managing the core portfolio and ensuring that our competitive advantages are continuously enhanced while also keeping a broad enough vision to identify opportunities for diversification into new assets and geographies that enable us to protect our earnings and build an economically sustainable business model for the long term."

George Hongchoy, Group Chief Executive Officer, said:

“To deliver these results in a climate as challenging as the one that we experienced over the past year is an illustration of the resilience of our business and a credit to the grit and determination of the entire team. Management is proactively addressing the challenges ahead by implementing comprehensive plans to manage costs and mitigate the impact of rental pressures on Unitholder returns. Diversification has been a key pillar of our resilience and growth, and under the Link 3.0 strategy, we continue to explore means to optimise the Link REIT portfolio through recycling and acquisitions, particularly in Australia, Singapore, and Japan. Simultaneously, we have been expanding our real estate investment management capabilities, including the successful launch of Link Real Estate Partners, to collaborate with diverse capital sources and accelerate growth through both organic and inorganic initiatives. Through these efforts we aim to bring our ‘REIT plus’ investment case to life, delivering stable returns amid market volatility and driving above-average earnings growth for our Unitholders."

Speaking about the upcoming 20^th Anniversary of Link REIT’s IPO, Mr. Hongchoy added:

“As we approach the 20th Anniversary of Link REIT’s IPO, we reflect with pride on our achievements over the past two decades including our asset management capabilities and the 100+ AEI initiatives we have completed; our success in investing and divesting assets in order to create value for our Unitholders; our relentless focus on creating sustainable value across our business; our positive community impact; and the returns that we have delivered to our Unitholders across the period. These achievements and learning provide us with confidence about our ability to be successful in the face of considerable challenges ahead.”

Overview

In the 2024/2025 financial year, Link REIT’s key performance indicators continued to reflect resilient business performance amid challenging and highly uncertain macroeconomic and geopolitical conditions.

Financial

• Revenue and NPI increased by 4.8% and 5.5%, to $14,223 million and $10,619 million, respectively, due to improved performance across most of the operating markets
• Total distributable amount grew by 4.6% to $7,025 million attributable to resilient performance of Hong Kong retail portfolio and full period contribution from Link Plaza Qibao
• DPU for the year edged up 3.7% year-on-year to 272.34 cents
• Net gearing ratio as of the end of March was 21.5%

Financial Highlights

Hong Kong portfolio

Hong Kong’s retail market faced major headwinds during the review period, with the sector experiencing a year-on-year decline in sales value. Despite stabilising patterns in Northbound leakage and outbound travel, the landscape grew more complex as tourist arrivals gradually rebounded but visitor spending contracted sharply, worsening the downturn in retail sales, particularly in the discretionary segment. Non-discretionary sales performed relatively better but faced challenges, while tenant sales within Link REIT’s Hong Kong retail portfolio showed resilience with a progressively narrowing decline each quarter.

Revenue and NPI of the Hong Kong portfolio registered a growth of 1.5% and 2.8% year-on-year, respectively, as Link REIT strove to maintain its revenue while achieving cost savings from lower electricity tariffs and lower repair and maintenance expenses.

As of 31 March 2025, retail occupancy maintained at a high level of 97.8% with more than 600 new leases signed during the period. Average monthly unit rent stood at $63.3 per square foot (psf) as of 31 March 2025, a slight decrease from $64.4 psf last year. 

Link REIT’s tenant sales dropped 3.0%, outperforming the broader market decrease of 7.0%. Nonetheless, the rent-to-sales ratio remained steady at a sustainable 13.0%. Rental reversion rate was negative 2.2% during the year. 

During the year, Link implemented asset enhancements at Fu Shin Shopping Centre and Sau Mau Ping Shopping Centre with a total investment of $92 million and estimated returns on investment (ROI) of 17.2% and 19.9%, respectively. A capital expenditure of around $576 million has been designated for projects that are in the planning and statutory approval stages, with a project pipeline involving a total capital expenditure of $150 million that will be completed between mid-2025 and early 2026.

Car parks and related business benefited from consistent improvement in both monthly and hourly car park income, with revenue growing 1.7% year-on-year. Monthly car park rental income grew by 0.9% year-on-year, while hourly rental income saw a 3.6% growth. During the reporting period, Link upgraded the smart parking system for more than 56,000 spaces across 121 car parks with more than 500 lanes in Hong Kong. This technology-driven upgrade maximises resource use and provides deeper insights into customer behaviour. This enables Link to offer tailored marketing and services, enhancing its competitive edge and boosting customer loyalty.

The Quayside, Link REIT’s flagship office property in Kowloon East, recorded an occupancy rate of 99.2% as of 31 March 2025, notwithstanding the prevalent high vacancies in Kowloon East’s office sector. The Quayside is well-positioned to capitalise on the flight to quality trend.

Mainland China portfolio

Total revenue and NPI in Link REIT’s Mainland China portfolio recorded a year-on-year increase of 29.7% and 28.9%, respectively, in RMB terms which was mainly attributable to full year contribution from Link Plaza Qibao and solid performance of retail assets post asset enhancements, including Link CentralWalk and Link Plaza Tianhe.

The occupancy rate within Link REIT’s Mainland China retail portfolio remained high at 95.9%. A negative retail reversion rate of 0.7% was recorded in the year due to the underperformance at Link Plaza Zhongguancun. Link will continue to upgrade the asset with a focus on enhancing its appeal and tenant mix, and improving the overall experience for customers, with the aim of attracting greater footfall. Excluding Link Plaza Zhongguancun, the portfolio achieved a positive reversion rate of 7.6%. 

Link integrated the operational team of Link Plaza Qibao since acquiring the mall’s remaining 50% interest in February 2024.

Link has allocated approximately RMB120 million to the second phase of asset enhancement of Link Plaza Tianhe in Guangzhou and RMB60 million to Link Plaza Tongzhou in Beijing. Renovation works for both assets have already commenced in late-2024 and are expected to be completed in mid-2025.

As of 31 March 2025, Link Square in Shanghai boasts an impressive occupancy rate of 95.4%, outperforming the district average despite the new office supply.

Link REIT’s logistics assets are strategically located near key transportation hubs in tier-one cities within the Greater Bay Area and the Yangtze River Delta. Its average occupancy rate stood at 97.4 % as of 31 March 2025, which was largely driven by proactive leasing strategy.

Overseas portfolio

Link REIT’s international portfolio spans retail and office assets in Australia, Singapore and the United Kingdom. Revenue and net property income increased by 2.2% and 1.3% to $1,781 million and $1,203 million, respectively. 

In Australia, tenant sales trends have been positive, with malls achieving near-full occupancy of 99.0% as of 31 March 2025. Tenant sales increased by 7.7%, driven by higher footfall in the central business district due to more local and international visitors, and improved rail connectivity from the newly opened Sydney metro. 

In Singapore, the retail assets Jurong Point and Swing By @ Thomson Plaza maintained strong performance with a 99.6% occupancy rate and a positive reversion of 17.8%, supported by sustained demand for suburban retail and strategic locations. However, tenant sales decreased slightly by 0.8% due to reduced discretionary spending. While leasing demand in Singapore is robust, the retail sector faces consolidation as consumer preferences have evolved and challenges from e-commerce and higher operating costs. Link will adopt proactive leasing strategies to introduce new brands and enhance retail offerings.

The international office portfolio’s income resilience is underpinned by a relatively long weighted average lease expiry of approximately 4.4 years. Overall occupancy was 85.5 %. The portfolio’s office assets are expected to benefit from progress in leasing vacant space and renewing tenants. Initiatives include enhancing the appeal of office assets through placemaking and provision of amenities. The tapering of new pipeline supply in 2025 and 2026 due to high construction and financing costs will support leasing activities.

Capital Management

Link REIT continued to enjoy a solid capital base and liquidity position during the period under review. Gross gearing reduced to 23.1% as of 31 March 2025 from 23.5 % as of 31 March 2024. Net gearing ratio maintained at a low level of 21.5%.

As of 31 March 2025, total debt (in face value) shrank further to $53.5 billion after a net repayment of $6.5 billion debt, and 66.9% of the debt portfolio was maintained at fixed interest rates. The relatively high fixed-rate hedge ratio ensures the stability of financing costs amidst a volatile macroeconomic environment. Average all-in borrowing cost for the period ended 31 March 2025 further improved to 3.6% from 3.8% a year earlier. Debt maturity averaged at 2.8 years and is well staggered over the coming 13 years.

A total of approximately 17.3 million units were bought back during the financial year at an average price of approximately $33.1 per unit, utilising an aggregated cost of approximately $575.3 million.

The announcement of Link REIT’s annual results has been posted on the HKEX news website and is accessible here. 

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

Appendix:

Financial Highlights for the year ended 31 March 2025

Annual Results Presentation

High definition photo

-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), the largest REIT 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/.