Link Reit has improved like-for-like revenue by 7 per cent in the first half year, with car park revenues up 10 per cent and retail up 6.6 per cent.
The valuation of Link’s investment properties portfolio reached HK$209.8 billion, an increase of 3.3 per cent compared to March 31.
In a results announcement, the company said its portfolio “continued to demonstrate its resilience and provide a productive platform for our tenants to thrive” during a time of geopolitical and economic uncertainty.
“Our efforts invested in asset management have yielded positive results for our retail portfolio,” the company said. “As at September 30, occupancy rate for the portfolio remained stable at 95.5 per cent and the overall portfolio reversion rate stood at 22.5 per cent. Average monthly unit rent improved to $65.7 per square foot (psf) as at September 30, up from $62.4 psf as at March 31.
Four asset enhancement projects were completed during the six-month period: Fu Shin Shopping Centre, Homantin Plaza, Sam Shing Commercial Centre and Wan Tsui Commercial Complex. Link’s asset enhancement pipeline is filled with projects in various stages, including 10 projects currently underway, five preparing to commence and 19 projects undergoing review.
On the mainland, Link’s three properties – EC Mall in Beijing, Metropolitan Plaza in Guangzhou, and Link Square 1 & 2 in Shanghai – performed “satisfactorily”, contributing a combined revenue of $490 million and net property income of $390 million. Increases of 22.8 per cent and 25.8 per cent, respectively. The retail portfolio occupancy rate was 98.8 per cent.
“The latest addition to the portfolio, Metropolitan Plaza, continues to be a growth engine with vast potential to be unlocked. EC Mall’s reversion rate stayed at a satisfactory level and the new tenants have been warmly welcomed by the local community. Reversion rate of retail portfolio stood high at 43.2 per cent. We will continue to tailor asset management strategies to enhance our asset qualities and offerings to the neighbourhoods,” the company said.
CEO George Hongchoy said Link is “well-placed to sustain its long-term growth trajectory while keeping foundation of business fundamentally sound and resilient”.
The company is considering acquisitions and/or divestments that can drive sustainable return long term.