Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — Non-Deal Roadshow (October 2023)
25 slides from Link Real Estate Investment Trust's roadshow presentation, Oct 5, 2023
Slide 1: Corporate Presentation October 2023
Corporate Presentation October 2023
Slide 2: Agenda
Agenda 01 Overview 3 02 Operational Update 6 03 Capital Management 17 04 Strategy Update 20 05 Q&A 24 Jurong Point, Singapore
Slide 3: Overview
3
Slide 4: Economic Environment Remains Challenging due to Higher Interest Rate
4 Economic Environment Remains Challenging due to Higher Interest Rate Mitigation to limit impact C H A L L EN GES A confluence of factors – interest rate hikes, persistent high underlying inflation, geopolitical tensions, deglobalisation and climate change - continue to weigh on global outlook as
Slide 5: Portfolio Overview - Recovery in Progress
5 Portfolio Overview - Recovery in Progress Business activities gathered pace amid persistent interest rate hikes 130 properties Hong Kong 248B (1) HK$ 12 properties Mainland China Portfolio Value Global 12 properties AU, SG & the UK Interest rate hovered at high levels Hong Kong 52.4% Retail 74.1%
Slide 6: Operational Update
6
Slide 7: Driving Operational Excellence
7 Driving Operational Excellence Provide organic and inorganic value to Link Focus on generating resilient Utilise our operational capabilities cashflow and delivering organic in real asset management to growth in the near-term support Link 3.0 strategy Integrated Operating Platform Improve efficien
Slide 8: 1Q FY 2023/24 Operational Highlights
8 1Q FY 2023/24 Operational Highlights Robust occupancies underpinned by improving consumer sentiment Occupancies (%) Retail Office Logistics Hong Kong 97.9% 97.5% N/A Mainland China 87.2%(1) 90.7% 92.3% Australia 98.2%(2) 94.1%(3) United Kingdom N/A N/A Singapore 99.4% N/A Notes: Chuk Yuen Plaza, H
Slide 9: Hong Kong Retail Sales
9 Hong Kong Retail Sales Tenant sales maintained steady growth +4.4% 12.5% Tenant Sales Occupancy Growth (1) Cost (3) Sau Mau Ping Shopping Centre Lung Hang Commercial Centre FOR THE PERIOD TENANT SALES O C C U PA N C Y C O S T APR 2023 – JUN 2023 G R O W T H (1) Food & Beverage Supermarket & Foodst
Slide 10: Asset Enhancements
10 Asset Enhancements Optimising asset for value creation Tung Tau Market (Completed) Kai Tin (Underway) Second phase of upgrade PIC Tung Tau Market, Wong Tai Sin Before After Before After CAPEX ROI Kai Tin, CAPEX Target Completion Date Lam Tin 12.9% HK$139M Late 2023 HK$28M Improved the utilisation
Slide 11: Prompt Response and Recovery at Temple Mall
11 Prompt Response and Recovery at Temple Mall Severely Inundated Our Dedicated Team Working Around the Clock Rapid Recovery Temple Mall North was Demonstrated Operational Remedial Actions Heavily Flooded Effectiveness o Caused by the heaviest rains in over o Restoration of the basement after o Work
Slide 12: International
12 International Promising retail demand ongoing; office flight-to-quality Jurong Point, Singapore Queen Victoria Building, Sydney 388 George Street, Sydney S G R E TA I L A U R E TA I L INT’L OFFICE o Portfolio and team integration o Sales and footfall are gradually o Flight to quality thematic com
Slide 13: Mainland China
13 Mainland China Progressing on the recovery trajectory Link Plaza · Jingtong, Beijing Link Square, Shanghai Dongguan Warehouse, Dongguan R E TA I L OFFICE LOGISTICS o Rental reversion slowly o Companies remained cautious o Occupancy mildly affected picking up as the retail sector on expansion due
Slide 14: Asset Enhancement – Link Plaza Tianhe
14 Asset Enhancement – Link Plaza Tianhe The latest asset enhancement project in China
Slide 15: Asset Enhancement – Link Plaza Tianhe
15 Asset Enhancement – Link Plaza Tianhe To tap the rising middle-class spending power A New Social Hive Where Connections Come Alive Ph. 1 Reopens Estimated CAPEX ROI September 2023 ~RMB 300M ~12.0% To tap into the spending of middle-class households in Tianhe and Zhujiang New Town areas Reconf
Slide 16: Precise Positioning - Link Plaza Tianhe
16 Precise Positioning - Link Plaza Tianhe Capture market demand by increasing experience-driven retail offerings Before AEI After AEI
Slide 17: Capital Management
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Slide 18: Prudent Capital Management
18 Prudent Capital Management Maintained a strong balance sheet and financial position with ample liquidity Net Gearing Ratio Fixed-rate Debt Ratio Average Borrowing Costs 17.8% 56.8% 3.0% Credit Rating S&P: A (Stable) Moody’s: A2 (Stable) Fitch: A (Stable) Debt Maturity Profile (as of 31 March 2023
Slide 19: Interest Rate Uncertainties
19 Interest Rate Uncertainties Hovered at high levels over a protracted period Fed Funds Rate & 10-year Treasury Yield AUD BBSY GBP SONIA Fed Fund Upper Bound Rate 10-year UST yield BBSY 3-month GBP SONIA (Overnight) 6% 5% 6% 5% 5% 4% 4% 4% 3% 3% 3% 2% 2% 2% 1% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep
Slide 20: Strategy Update
Slide 21: "Properties" and "People" Combined under Link
21 “Properties” and “People” Combined under Link Our Unitholders Properties People • ~HK$270bn GAV now • Under Link Asset Management Limited (“LAML”), a dedicated • Core/Core+ return Link 3.0 internal manager now on cost • Sizeable HK non-discretionary recovery basis retail exposure • Fully fledged
Slide 22: Adopting an Asset-lighter Approach
Adopting an Asset-lighter Approach Three Core Components under Link 3.0 Assets on Fund Management Operating Platform Balance Sheet Platform • Remain tenant-customer • Extend to manage both public • Cautious and patient approach centric and private capital for acquisition • Enhance efficiency and • B
Slide 23: Our Strategic Direction
23 Our Strategic Direction To be a World-Class APAC REAL ESTATE INVESTOR & MANAGER 01 02 03 04 05 06 Active asset Diversify our Adopt an asset- Expand our Active capital ESG and management to income source lighter approach capabilities across management to sustainability achieve organic through yiel
Slide 24: Q&A
Q&A
Slide 25: Disclaimer
25 Disclaimer This document has been prepared by Link Asset Management Limited in its capacity as the Manager (the “Manager”) of Link Real Estate Investment Trust (“Link REIT”) solely for use at the presentations/meetings held and may not be reproduced or redistributed without permission. Neither
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