Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — Investor Presentation (September 2020)
24 slides from Link Real Estate Investment Trust's investor presentation, September 2020
Slide 1: Corporate Presentation September 2020
Corporate Presentation September 2020
Slide 2: Why invest in Link REIT?
2 Why invest in Link REIT? 01 02 03 04 05 100% FREE FLOAT QUALITY ASSETS RESILIENT TRACK RECORD OF STRONG CORPORATE DIVERSIFIED TRADE MIX PERFORMANCE GOVERNANCE ACROSS REGIONS One of the largest retail- Commercial assets in Focus on Fifteen years of Highly independent focused REITs in Asia Hong Kong
Slide 3: Top Global Retail-focused REITs
3 Top Global Retail-focused REITs Link is one of the largest retail-focused REITs in the world US$B No.1 Largest retail-focused 25.0 REIT in Asia by market 21.9 21.4 capitalisation 20.0 16.5 15.0 1st First REIT listed in Hong Kong 10.0 8.6 6.7 6.1 5.3 5.2 5.1 4.8 5.0 3.9 3.8 2.4 1.7 1.4 1.2 Only 1 O
Slide 4: Quality Portfolio Diversified across Regions
4 Quality Portfolio Diversified across Regions Pro-forma Portfolio Value(1) – HK$200B Includes retail facilities, car parks and (31 March 20) offices 1.6% 1.8% 3.1% 9.6% GEOGRAPHY NO. OF PROPERTIES AREA 4.3% Hong Kong 63.7% 126 ~ 9M sq ft 83.9% Hong Kong Retail, office and car parks Retail and Mainl
Slide 5: Track Record of Performance and Execution
5 Track Record of Performance and Execution Financial Performance Dec 05 Jan 15 Apr 16 Apr 17 Mar 19 1st Development HK Acquisition 3rd Mainland 4th and 5th Mainland China 20,000 2.8719 3 IPO of 180 Acquired with major China Acquisitions 2.7117 shopping centres greenfield site for renovation Acquisi
Slide 6: Strong Commitment to Sustainability
6 Strong Commitment to Sustainability By measuring and reporting our performance, we can improve the way we do things and set new benchmarks for our projects, properties and communities 48 Rank 6th In East Asia Score Score 67/100 Participation since 2013 Participation since 2012 (2) 3.1 ESG Rating S
Slide 7: Highly Independent Board for Effective Oversight and Leadership
7 Highly Independent Board for Effective Oversight and Leadership Composition 75% 8% 17% INED NED ED Gender 67% 33% Male Female Ethnicity 58% 42% Chinese Non-Chinese Core 59% Competency 25% 8% 8% Real estate related Legal Financial/Accounting Others
Slide 8: Operational Update
01 Operational Update
Slide 9: Hong Kong Retail
9 Hong Kong Retail Retail Revenue growth 7.0% (1) 96.0% Reversion 12.6% Occupancy as at 30 Jun 20 Average unit rate HK$70.3psf Trade Mix by Monthly Rent Jun 20 Mar 20 Food and beverage 28.6% 28.9% Supermarket and foodstuff 20.8% 20.6% Markets/ cooked food stalls 15.1% 14.6% Services 10.9% 11.1% Pers
Slide 10: Hong Kong Car Park
10 Hong Kong Car Park Car Park Revenue growth 4.2% (2) Car park income per space per month HK$2,827 Average valuation per space HK$561K Notes: (1) All figures for the year ended / as at 31 March 2020, unless stated otherwise. (2) On a like-for-like basis, excluding any properties acquired, divested
Slide 11: Hong Kong Retail
11 Hong Kong Retail Tenant Sales Growth (1) Occupancy Cost (3) Apr 20 – Jun 20 (Link) Apr 20 – Jun 20 (HK) Food & beverage Supermarket & foodstuff General retail (2) Overall Overall 12.7% 19.6% 18.5% -1.6% -10.8% 15.9% -17.7% -22.9% -25.9% 11.4% -30.3% -39.2% Food & beverage Supermarket & General re
Slide 12: Hong Kong Office
12 Hong Kong Office The Quayside Premium Grade A office in Kowloon East, Hong Kong ~80% ~72% Office Retail Occupancy (1) Occupancy (1) • Successfully achieved additional leasing during COVID-19 Note: (1) As at 30 June 2020.
Slide 13: Mainland China Retail
13 Mainland China Retail Trade Mix by Area Jun 20 Mar 20 93.6% Food and beverage 26.9% 28.5% Occupancy as at 30 Jun 20 Supermarket and foodstuff 15.1% 14.6% Fashion 27.0% 26.9% 29.6% General retail & others 17.9% 17.3% Reversion Leisure & entertainment as at 31 Mar 20 13.1% 12.7% Total 100% 100% • F
Slide 14: Mainland China Office
14 Mainland China Office Link Square Premium Grade A office in Shanghai, Mainland China Tenant Mix by Area Jun 20 Mar 20 92.5% Professional services 42.3% 41.1% Occupancy as at 30 Jun 20 Technology, Media, Telecom 15.2% 14.9% Pharmacy 6.9% 6.6% Industrial goods & services 13.1% 12.9% 7.1% Retailers
Slide 15: Asset Enhancement
15 Asset Enhancement (1) AE AE Pipeline Pipeline AE Underway Projects Update Underway Project ROI target Annual CAPEX Lok Fu Place Double-digit ~HK$400-600M Lok Fu Place CAPEX >HK$1.3B extending to 2025/26 CentralWalk (2) CAPEX HK$411M to be completed 19 by early 2021 4 Underway Under planning • Pro
Slide 16: Australia Office Market Street
16 Australia Office 100 Market Street Premium Grade A office in Sydney, Australia Fully-let with stable income 100% ~8 years 4% Office WALE Annual Rental Occupancy (1) Escalation • Entry NOI yield of ~4.0% • FX mitigated by AUD borrowings Tenant Mix By Rent Jun 20 S&P/ASX 100 listed property investo
Slide 17: United Kingdom Office - The Cabot
17 United Kingdom Office The Cabot Premium Grade A office in London, United Kingdom Acquisition completed on 25 Aug 2020 £380M 99% 10+ years Acquisition Occupancy (1) WALE Price • Entry NOI yield of ~5.0% • FX risk mitigated by GBP borrowings • Contribution to commence from September 2020 Tenant Mix
Slide 18: Strong Liquidity and Accessibility to Debt Markets
18 Strong Liquidity and Accessibility to Debt Markets Latest Updates Staggered Maturity Profile as at 31 March 20 (1) Credit ratings A A2 A HK$B S&P’s MOODY’S FITCH 8 7.2 Gearing ratio 19.2% (3) 7 0.2 Cash / committed HK$2.9B / HK$15.6B 6 5.6 5.7 5.7 5.6 5.6 facilities 0.1 0.2 0.2 0.3 1.0 (as at 30
Slide 19: Strategy and Update
02 Strategy and Update
Slide 20: Vision 2025 – Key Achievements in 2020/21 YTD
20 Vision 2025 – Key Achievements in 2020/21 YTD Portfolio Growth Culture of Excellence The Cabot Launch of Link Property Management arm Set up in April 2020 to oversee all of Link’s Hong Kong property management functions Visionary Creativity “Waste No Food” Tenants at Link’s fresh markets have bee
Slide 21: Asset Management – Business As Mutual
21 Asset Management – Business As Mutual Creating long-term shared value for stakeholders Management Priority Tenant Performance • Safety and health of community & employees ✓ Supermarket and fresh market sales increased due to more • Maintain steady occupancy cooking at home • Support our tenants t
Slide 22: Long-term Partnership – Tenant Support Scheme
22 Long-term Partnership – Tenant Support Scheme Feb 20 Apr 20 Aug 20 HK$80M Extended to HK$300M Doubled to HK$600M Overall HK$600M budgeted (1) tenant support Impact on distribution: scheme, with supportive measures including: • HK$80M announced in February 2020 has been • Management fee and air-co
Slide 23: Capital and Portfolio Management
23 Capital and Portfolio Management Capital Management Portfolio Management • Continue our prudent approach to • Due diligence remains challenging given the travel restrictions maintain maximum flexibility • Continue to seek out distress deals and strategic growth • Maintain strong credit ratings an
Slide 24: Disclaimer
Disclaimer 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.
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