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<Research> UBS Raises LINK REIT (00823.HK) TP to HKD47.2; Market Yet to Price in HKD34B Asset Recycling Opportunities
Recommend 32 Positive 37 Negative 37 |
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UBS issued a report raising its TP for LINK REIT (00823.HK) from HKD42 to HKD47.2 to reflect potential asset recycling and share buyback plans, and maintained a Buy rating. The report noted that LINK REIT will announce its results for the fiscal year ended March 2026 on May 28. It forecast distribution per unit for FY2026 to decline 8% YoY to HKD2.51. The reversion rate for Hong Kong retail renewals is expected to be negative 8%, compared with negative 7.5% for the first nine months of FY2026 ended last December. Although near-term fundamentals remain weak, the broker sees upside potential from possible asset recycling and share repurchases. Following the disposal of Thomson Plaza and office assets in Australia and the United Kingdom, logistics assets in China could become the next divestment target. Underperforming malls in Guangzhou and Beijing may also be potential disposal candidates in the medium term. Overall, non-core assets could total HKD34 billion, representing about 15% of total assets. The current share price still offers a dividend yield of over 6%, well above peers (Hang Lung Properties / Wharf REIC / Hysan Development at 5.3% to 5.8%), and UBS believes the market has yet to fully price in its re-rating potential. (ha/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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