Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — FY2024/25 Earnings Presentation
52 slides from Link Real Estate Investment Trust's earnings presentation, May 27, 2025
Slide 1: Annual Results 2024/2025 Analyst Presentation
Annual Results 2024/2025 Analyst Presentation 27 May 2025
Slide 2: Agenda
2 Agenda 01 02 03 04 Highlights Business & Strategy Financials Link REIT Portfolio Highlights 05 06 07 Outlook Q&A Appendix Announcement Presentation Kai Tin Shopping Centre, Hong Kong
Slide 3: Highlights
01 Highlights
Slide 4: Highlights
4 Highlights o Solid results: NPI +5.5% YoY and DPU +3.7% YoY o Hong Kong and Mainland China businesses faced challenges o Valuation pressures across most operating markets o Intensifying macro headwinds and heightened uncertainty o Robust financial position and management priorities to weather chal
Slide 5: Solid Results amid Intensifying Challenges
5 Solid Results amid Intensifying Challenges FY2024/2025 Performance Highlights Revenue Net Property Income Distributable Amount HK$14.2B HK$10.6B HK$7.0B 4.8% YoY 5.5% YoY 4.6% YoY Distribution Per Unit NAV Per Unit Portfolio Value HK$2.72 HK$63.3 HK$226B 3.7% YoY 9.6% YoY 6.6% YoY Average All-in C
Slide 6: Business & Strategy
02 Business & Strategy
Slide 7: Link's First 20 Years
7 Link’s First 20 Years Key Corporate Events Further Entered SG expansion in Disposals of Acquired a AU Acquisition of 1st asset 1st asset two HK asset International development Acquired the retail assets acquisition disposal Diversified portfolios at expansion Entered the site off remaining 50% fro
Slide 8: Link REIT Portfolio Overview
8 Link REIT Portfolio Overview Hong Kong: 130 assets; Portfolio Value: HK$170B Retail(2) Portfolio Value (1) 75.1% 52.2% 20.4% Car Parks and Related Business(3) 2.5% Office Mainland China: 6 retails, 1 office, 5 logistics; Portfolio Value: HK$31B HK$ 226B 10.8% Retail 13.9% 2.1% Office 1.0% Logistic
Slide 9: Diversification Enabled Resilient Earnings
9 Diversification Enabled Resilient Earnings Distributable Amount Annualised Total Portfolio Value CAGR(2) Unitholder Return(3,4) HK$226B 9.1% 10.9% since IPO 5.7x since IPO outperformed HSI (+5.8%) & HSPI (+3.1%) Total distributable amount(1) (HK$B) & NPI Contribution analysis (%) NPI HK$10.62B NPI
Slide 10: 20 Years of Success in Value Creation
10 20 Years of Success in Value Creation Asset Management Capabilities Proven Exit Track Record Link REIT Portfolio 103 57 154 AE Projects Completed Realised Assets Unrealised Assets 18.0% 20.8% 11.7% Average ROI Unlevered Gross IRR Unlevered Gross IRR 6.2% HK$47B HK$226B Portfolio NPI growth per an
Slide 11: Key Strategic Initiatives in FY2024/25
11 Key Strategic Initiatives in FY2024/25 Portfolio Optimisation Investment Management Capital Management ▪ Completed AEIs on two assets ▪ Launched Link Real Estate Partners ▪ RMB hedging ▪ Enhanced operational efficiency ▪ A pan-regional team and ▪ Competitive refinancing rate ▪ Upgraded car park m
Slide 12: Financials
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Slide 13: Steady Growth Bolstered by Income Stability
13 Steady Growth Bolstered by Income Stability Mainland China International Steady Growth Portfolio Showed Portfolio Solid Pressure on in Hong Kong Improved Maintained Steady Financial Position Asset Valuation Portfolio Performance Growth Total revenue Total revenue and SG and AU retail Low net gear
Slide 14: FY2024/25 Financial Highlights Showcasing Financial Resilience
14 FY2024/25 Financial Highlights Showcasing Financial Resilience HK$’M FY2024/25 FY2023/24 YoY% • Excluding long-term incentive (“LTI”) scheme Revenue 14,223 13,578 4.8 adjustments, consultancy and legal fee, as G&A well as M&A expenses, G&A would have Property operating expenses (3,604) (3,508) 2.
Slide 15: Valuation Impacted by Cap Rate Expansion
15 Valuation Impacted by Cap Rate Expansion Valuation Capitalisation Rate Local As at As at As at As at (’B) Currency HoH% 31 Mar 2025 30 Sep 2024 31 Mar 2025 30 Sep 2024 Hong Kong HKD -3.4% Retail properties 117.7 122.2 3.7% - 4.9% 3.5% - 4.8% Car parks and related 46.0 47.1 3.0% - 5.0% 2.8% - 4.9%
Slide 16: Prudent Capital Management with Stable Finance Costs
16 Prudent Capital Management with Stable Finance Costs Key Financial Metrics Average All-in EBITDA Interest Net Gearing Ratio Borrowing Costs Coverage 21.5% 3.6% 5.0x (1) Fixed-rate Debt Ratio Average Debt Maturity Available Liquidity 66.9% 2.8 years HK$8.7B Highlights Finance Cost Hedging Ratio Cu
Slide 17: Healthy Debt Profile with Effective Hedging
17 Healthy Debt Profile with Effective Hedging Debt Profile Breakdown Financing Arranged in FY24/25 (HK$ billion) 16.0 3.3 34.2 Debt Mix by Type (30%) (6%) (64%) New Financing Medium Term Notes Convertible Bond Bank Loans HK$5.2B Debt Mix by Fixed 35.8 17.7 / Floating Rates (67%) (33%) (After intere
Slide 18: Link REIT Portfolio Highlights
04 Link REIT Portfolio Highlights
Slide 19: Hong Kong Retail – Steady Leasing Performance Marked by Healthy Occupancy
19 Hong Kong Retail – Steady Leasing Performance Marked by Healthy Occupancy Key Operating Metrics Revenue Growth Occupancy Reversion Unit Rent psf +1.5%YoY 97.8% -2.2% HK$63.3 (1) (3) Tenant Sales Growth Occupancy Cost Link’s performance vs HK market 4.0% 1.1% -1.7% 5.1% 0.2% 0% -0.9% -1.7% (2) -3.
Slide 20: Hong Kong Retail – Adaptive Leasing Approach
20 Hong Kong Retail – Adaptive Leasing Approach Signed in FY2024/2025 Retention Rate Over 600 New Leases (1) Over 80% (1) (over 210 new brands and 390 existing brands) As of March 2025 by IFA First to Link’s Portfolio Mainland China Brands Japan Brands Apparel F&B F&B Furniture & Home Accessories Le
Slide 21: Hong Kong Car Parks and Related Business Steady Growth
21 Hong Kong Car Parks and Related Business Steady Growth Revenue Car Park Income Avg Car Park Valuation New Car Park Growth HK$3,391 HK$734,000 System Deployed +1.7%YoY Per space per month Per space Across Portfolio 1.6% YoY 1.3% YoY Sustained Revenue Growth Trajectory (1) Hourly car park Monthly c
Slide 22: Mainland China Retail Showed Divergent Trends
22 Mainland China Retail Showed Divergent Trends Occupancy Reversion 95.9% -0.7% ▪ Excluding Link Plaza ZGC, which is affected by the challenging business environment, the rental reversion would have been 7.6% ▪ Signed over 300 new leases in FY2425, with growing consumer preference for sporting good
Slide 23: International Retail Continued Sustainable Growth
23 International Retail Continued Sustainable Growth Singapore ▪ High occupancy rates across the portfolio with growth in shopper traffic Occupancy ▪ Tenant sales moderated slightly by -0.8% YoY on lower 99.6% discretionary spending. Necessity trades including F&B and Beauty & Wellness, registered g
Slide 24: International Office and Mainland China Logistics – Mixed Performance
24 International Office and Mainland China Logistics – Mixed Performance International Office (1) ▪ Flight-to-quality causing deepening bifurcation in the Sydney office market Occupancy 85.5% ▪ Support leasing outcome with speed-to-market speculative fit-out ▪ Tapering of new pipeline supply in 2025
Slide 25: Active Asset Management For Growth
25 Active Asset Management For Growth AE Project Pipeline Hong Kong Retail Mainland China Retail Estimated CAPEX Estimated CAPEX HK$2.3B (Include projects underway, under planning RMB180M and statutory approval, and The Anderson (Include projects underway) development project) EV Chargers Solar Powe
Slide 26: Sustainability Drives Operational Efficiency
26 Sustainability Drives Operational Efficiency Strategic Priorities Achievements Continued to invest on energy 21.0% saving initiatives Carbon Intensity Reduction (1) Decarbonisation Pioneered sustainability-linked 11.7% insurance Reduction in Climate Resilience Insurance Premium Costs Co-investmen
Slide 27: Outlook
05 Outlook
Slide 28: Looking Further Ahead
28 Looking Further Ahead Challenging Macro Backdrop Interest Geopolitical Technological Demographic Tariffs Rates Tension Advancement Change Key Impact Areas Consumer Rental Asset Inflationary Finance Sentiment Level Valuation Pressure Cost Signs of Resilience in MLC Key Markets HK Lease Tourist Inf
Slide 29: Our Priorities to Address Challenging Outlook
29 Our Priorities to Address Challenging Outlook Sustaining Resilience Vigilant Cautious Investment Through Operational Cost Optimisation to Build for Future Excellence Enhanced operational efficiency Reviewing all areas of cost under Continue to invest with caution measures and continued close our
Slide 30: Link 3.0 Update
30 Link 3.0 Update ‘REIT plus’ investment case to provide resilient earnings with potential for growth Optimise Link REIT Portfolio Grow REIM Business Active Management and Diversification Organic o Accretive investments in assets with o Launch of LREP growth potential in our key markets o Explore o
Slide 31: Aligning Compensation with Unitholders' Interest
31 Aligning Compensation with Unitholders’ Interest The Key Principles of our Remuneration Strategy Major Updates on Executive Remuneration Led by the Remuneration Committee, we: • Engaged an independent external consultant • Consulted several long-term unitholders • Reviewed executive remuneration
Slide 32: Distribution Calendar
32 Distribution Calendar Distribution period 1 Oct 2024 – 31 Mar 2025 Last day of trading on a “cum” basis 17 Jun 2025 Ex-distribution date 18 Jun 2025 Next quarterly operational update in Aug 2025 20 Jun 2025 – 25 Jun 2025 Distribution book close (both days inclusive) Record date for entitlement to
Slide 33: Q&A
06 Q&A
Slide 34: Appendix
07 Appendix
Slide 35: Table of Contents
35 Table of Contents Financial Data 36 • Financial Statement 36 • Capital Management 40 Operational Data 41 Hong Kong Market Data 45 • Car Park Demand and Supply 45 • Retail Sales 46 • Transport Infrastructure 47 ESG Updates 48 • ESG Indices Performance 48 • Community Engagement and Sustainability I
Slide 36: Key Financial Data
36 Appendix 1 Key Financial Data Percentage contribution Year ended Year ended year ended 31 Mar 2025 31 Mar 2024 YoY 31 Mar 2025 Consolidated HK$’M HK$’M % (%) Revenue 14,223 13,578 +4.8 - Net property income 10,619 10,070 +5.5 - Rentals Hong Kong retail and office properties 6,657 6,652 +0.1 46.9
Slide 37: Financials – Income Statement Summary
37 Appendix 2 Financials – Income Statement Summary Year ended Year ended 31 Mar 2025 31 Mar 2024 YoY HK$’M HK$’M % Revenue 14,223 13,578 +4.8 Property operating expenses (3,604) (3,508) +2.7 Net property income 10,619 10,070 +5.5 (1) (2) General and administrative expenses (915) (766) +19.5 (3) Int
Slide 38: Property Operating Expenses Analysis
38 Appendix 3 Property Operating Expenses Analysis Percentage contribution Year ended Year ended year ended 31 Mar 2025 31 Mar 2024 YoY 31 Mar 2025 (HK$’M) (HK$’M) (%) (%) Property managers’ fees, security (1) 958 922 3.9 26.6 and cleaning (2) Staff costs 660 648 1.9 18.4 Repair and maintenance 296
Slide 39: Financials – Distribution Statement Summary
39 Appendix 4 Financials – Distribution Statement Summary Year ended Year ended 31 Mar 2025 31 Mar 2024 YoY HK$’M HK$’M % Loss for the year, before transactions with Unitholders (8,863) (1,983) 346.9 attributable to Unitholders Change in fair values of investment properties attributable to 16,181 7,
Slide 40: Financials – Capital Management
40 Appendix 5 Financials – Capital Management Key Credit Metrics by Rating Agencies S&P Moody’s Fitch As at requirement requirement requirement 31 Mar 2025 (A / Stable) (A2 / Stable) (A / Stable) Net debt / IP 22.4% N/A N/A <30% Debt / Debt + Equity 23.2% <30% N/A N/A EBITDA Interest Coverage 5.0x N
Slide 41: Retail Portfolio – Lease Expiry Profile
41 Appendix 6 Retail Portfolio – Lease Expiry Profile (2) Hong Kong Retail Mainland China Retail Australia Retail Singapore Retail As % of As % of As % of As % of monthly monthly monthly monthly total area rent (1) total area rent (1) total area rent (1) total area rent (3) As at 31 Mar 2025 (%) (%)
Slide 42: Office Portfolio – Lease Expiry Profile
42 Appendix 7 Office Portfolio – Lease Expiry Profile Hong Kong Office Mainland China Office International Office As % of As % of As % of total area monthly total area monthly total area monthly (%) rent(1) (%) rent(1) (%) rent(1) As at 31 Mar 2025 (%) (%) (%) 2025/2026 8.1 4.5 12.0 14.1 1.7 2.2 202
Slide 43: Hong Kong and Mainland China Retail Portfolio – Trade Mix
43 Appendix 8 Hong Kong and Mainland China Retail Portfolio – Trade Mix 15.1% 6.9% 2.8% 5 0.7% 8 4 1.0% 7 6 1 29.0% 5.5% 38.6% 5 Hong Kong 27.0% Mainland China 5 Retail Trade Mix 3 Retail Trade Mix 1 4 (by rent)(1) (by rent)(1,4) 10.5% 4 2 3 20.8% 17.4% 2 24.7% Hong Kong Retail Mar-25 Sep-24 Mainlan
Slide 44: International Retail Portfolio – Trade Mix
44 Appendix 9 International Retail Portfolio – Trade Mix 4.1% 0.5% 11.2% 16.0% 56 4.4% 8 4 7 5.1% 36.6% 6 42.2% Australia 1 1 6.0% 5 Singapore 15.0% Retail Trade Mix Retail Trade Mix 3 (by rent) (1,3) (by rent) (2,4) 4 1 10.3% 2 3 2 22.2% 12.3% 14.1% Australia Retail Mar-25 Sep-24 Singapore Retail M
Slide 45: Hong Kong Market Data – Car Park Demand and Supply
45 Appendix 10 Hong Kong Market Data – Car Park Demand and Supply No. of Registration of Vehicles and Private Car Demand and Supply (YoY) Parking Spaces (Private Cars) 717,364 5.4% 631,976 3.1% 2.7% 2.0% 2.3% 1.5% 632,607 1.3% 1.4% 1.3% 1.5% 1.0% 0.8% 1.2% 0.8% 1.1% 0.5% 0.6% 0.3% 0.5% 0.0% -0.2% 47
Slide 46: Hong Kong Market Data – Retail Sales
46 Appendix 11 Hong Kong Market Data – Retail Sales YoY% Change Hong Kong Retail Sales 60% CY1Q2025 (Jan - Mar 2025) Non-discretionary Discretionary 40% (2) Total retail sales 20% -0.8% ↓0.8% YoY 0% -5.2% Non-discretionary retail sales -12.6% -20% ↓5.2% YoY -40% Total retail sales(2) -60% 1Q 2Q 3Q 4
Slide 47: Hong Kong Market Data – Transport Infrastructure
47 Appendix 12 Hong Kong Market Data – Transport Infrastructure Smart and Green Mass Transit System 6 Link REIT’s assets poised to benefit from enhanced connectivity Choi Hung Choi Wan Station Station Shun Lee Shun Lee Station Sau Mau Ping Kwun Tong Central Lam Tin Yau Tong Choi Hung Hillside Shun O
Slide 48: ESG Indices Performance
48 Appendix 13 ESG Indices Performance 4 Star Rating AA 2024: 87/100 2024: 78.6/100 2023: 87/100 2023: 75.5/100 Asia Pacific Index BBB 2024: 70/100 2024: 5.6/10 2023: 68/100 2023: 5.7/10 FTSE4GOOD Index Negligible Risk Rating 2024: 4.1/5 2024: 8.84/100 (1) 2023: 3.8/5 2023: 10.37/100 (1) Ardent Supp
Slide 49: Community Engagement and Sustainability Initiatives
49 Appendix 14 Community Engagement and Sustainability Initiatives Renewable Energy Adoption Link Together Initiatives(1) 53 Assets in Hong Kong Our flagship charity and community engagement programme aims to engage • >4.5 MW installed capacity (3) stakeholders in the communities and enhance sustain
Slide 50: Investor Relations Updates
50 Appendix 15 Investor Relations Updates Strengthened communications with more timely updates CURRENT PRACTICE NEW PRACTICE Format Format Briefing session and operational Operational data to be uploaded on update presentation available on HKEx and corporate website corporate website Schedule Schedu
Slide 51: Definitions and Glossary
51 Appendix 16 Definitions and Glossary average monthly unit rent the average base rent per month psf of leased area in respect of a lease, the standard rent payable under the lease, exclusive of any additional turnover rent (if applicable) and other charges base rent and reimbursements DPU distribu
Slide 52: Disclaimer
52 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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