Link Reit Reports First-Half Revenue Dip
Link Real Estate Investment Trust posted a revenue decrease of 1.6 per cent to HK$6.9 billion for the six months ended September 30, Inside Retail Asia reported.
The Hong Kong-based shopping centre operator reported lower rental income from its domestic stores, slower growth in essential retail, and changing online spending habits. Net property income fell 0.8 per cent to HK$5.1 billion, while the net property income margin improved slightly due to operating cost management and efficiency initiatives. Distribution per unit remained steady at 127.25 cents through disciplined capital and cost management.
Portfolio Performance Across Markets
The company’s core Hong Kong portfolio, which accounts for over half of total revenue, recorded declines of 2.7 per cent in revenue and 2.9 per cent in net property income. Occupancy across the Hong Kong portfolio stood at 97 per cent as of September 30.
The Mainland China portfolio saw revenue slide 2.9 per cent with retail occupancy at 97.5 per cent. The international portfolio recorded a revenue decrease of 0.3 per cent, supported by occupancy rates of 99.8 per cent in Australia and 99.2 per cent in Singapore.
Duncan Owen expects income to edge down
“We are seeing early signs of stabilisation in parts of our core portfolio, although we expect our income to continue to edge down mainly in our Hong Kong retail segment, which accounts for approximately half of our portfolio,” said Duncan Owen, chairman of Link Reit.
Owen added that the company delivered a stable performance in the first half despite declining income and a challenging interest rate environment. Last year, the company posted a 2 per cent drop in revenue.
Questions about Link Reit revenue and occupancy
What caused the revenue decrease for Link Reit?
Revenue fell due to negative rental reversions in the Hong Kong retail portfolio, a slower recovery in non-discretionary retail, and continued shifts toward online shopping patterns.
How did the company maintain its distribution per unit?
Distribution per unit remained steady at 127.25 cents through disciplined cost and capital management initiatives.
What were the occupancy rates across Link Reit’s portfolios?
As of September 30, occupancy stood at 97 per cent in Hong Kong, 97.5 per cent in Mainland China, 99.8 per cent in Australia, and 99.2 per cent in Singapore.