Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — Non-Deal Roadshow (October 2024)
25 slides from Link Real Estate Investment Trust's roadshow presentation, Oct 3, 2024
Slide 1: FY2024/25 Interim Pre-Blackout Briefing
FY2024/25 Interim Pre-Blackout Briefing 3 Oct 2024
Slide 2: Overview, Operational Update, Capital Management, Strategy Update, Q&A
01 OVERVIEW 01 02 OPERATIONAL UPDATE 01 03 CAPITAL MANAGEMENT 01 04 STRATEGY UPDATE 01 05 Q&A 01
Slide 3: Overview
01 OVERVIEW 01
Slide 4: Central Themes Impacting the Macro Landscape
4 Central Themes Impacting the Macro Landscape Resilience in the midst of divergence Interest Easing rates inflation Prospects of further Inflationary impact of interest rate cuts in 2024 wage growth has been buffered by profits Swing By @ Thomson Plaza Butterfly Plaza Middle East Uneven conflict co
Slide 5: Market Prospects: Hong Kong and Mainland China
5 Market Prospects Our markets showcase solid economic fundamentals HONG KONG Unemployment Rate (%) Remains Favourable The Hong Kong economy sustained moderate growth at +3.3% YoY during 2Q 2024 5.8% 5.2% 4.3% The Central Government measures and HKSAR’s 2.9% 3.0% 3.0% efforts to boost inbound touris
Slide 6: Market Prospects: Singapore and Australia
6 Market Prospects Our markets exhibit notable economic strength SINGAPORE Unemployment Rate (%) Holds Steady at Low Levels As a major developed market in the APAC, Singapore’s economy experienced modest sequential growth in 2Q 2024 at +2.9% YoY. 3.0% 2.7% 2.1% 1.9% 2.1% 2.0% Core inflation eased to
Slide 7: Portfolio Overview
7 Portfolio Overview Consistent business performance amid opportunities and challenges 130 properties Hong Kong (1) HK$ 241B 12 properties Mainland China Temple Mall Link Plaza Liwan Jurong Point The Strand Arcade Portfolio Value Global 12 properties Interest rate cut cycle by the Fed a booster to o
Slide 8: Operational Update
02 OPERATIONAL UPDATE 01
Slide 9: 1Q FY 2024/25 Operational Highlights
9 1Q FY 2024/25 Operational Highlights Robust occupancies driven by leasing demand and improving consumer sentiment HONG KONG 97.5% 99.2% Sau Mau Ping Shopping Centre Retail Office MAINLAND CHINA 93.6% 90.5% 92.5% Retail Office Logistics Link CentralWalk INTERNATIONAL 98.4% 99.5% 89.4% (1) (2) Singa
Slide 10: Hong Kong Retail Sales: Tenant Sales Growth
10 Hong Kong Retail Sales Tenant resilience with stronger than market performance despite sales decline Yat Tung Shopping Centre Lei Yue Mun Plaza Lok Fu Place Fu Tung Plaza Tenant Sales Growth (1) (For the period of Apr to Jun 2024) Link Hong Kong ➢ Our tenant sales growth faced 0% challenges from
Slide 11: Hong Kong Retail Sales: Occupancy Cost
11 Hong Kong Retail Sales Occupancy costs remain within a sustainable range Occupancy Cost (3) (For the period of Apr to Jun 2024) 13.4% (3) Occupancy Cost Food & Beverage Supermarket & Foodstuff General Retail Overall 14.4% General 13.4% Overall 13.3% F&B Lung Hang Commercial Centre 12.6% Supermark
Slide 12: Hong Kong Car Parks and Related Business
12 Hong Kong Car Parks and Related Business Smart parking system opens opportunities for productivity Number of Revenue Total Parking Tickets per space Income(3) Moderate decline Low single-digit growth Marginally higher ➢ Car parks upgraded to smart parking system (1) across 121 car parks to ensure
Slide 13: Link Car Park System and Central Control Platform
13 Link Car Park System and Central Control Platform A highly efficient operation model that optimises the utilisation of parking resources
Slide 14: Asset Enhancements
14 Asset Enhancements Maximising asset value potential Fu Shin Sau Mau Ping Retail (Completed) (Completed) CAPEX CAPEX HK$37M HK$58M ROI ROI Before Before 17.2% 19.6% Completion Completion date date After Apr 2024 After Jul 2024
Slide 15: International
15 International Sustained retailer demand; trend maintained in office flight-to-quality Jurong Point The Strand Arcade 388 George Street S G R E TA I L A U R E TA I L INT’L OFFICE o Portfolio occupancy remained o Portfolio occupancy sustained o Flight-to-quality thematic continues high at 98.4% wit
Slide 16: Mainland China
16 Mainland China Resilient performance against a challenging landscape but stabilising in GBA Link CentralWalk Link Square Foshan Warehouse R E TA I L OFFICE LOGISTICS o Occupancy stood at 93.6% o Occupancy rate held above o Overall occupancy rate maintained 90% despite the influx of new at a healt
Slide 17: Link CentralWalk Basement Transformation
17 Link CentralWalk Basement Transformation Improving visibility and enhancing its allure Footfall & CAPEX ROI Completion date Tenant Sales RMB 24M 43.8% July 2024 Historical High Explored the revitalised basement
Slide 18: Link CentralWalk Basement Area Grand Re-Opening
18 Link CentralWalk Basement Area Grand Re-Opening
Slide 19: Capital Management
03 CAPITAL MANAGEMENT 01
Slide 20: Strong Financial Position
20 Strong Financial Position Primed to capitalise on potential opportunities NET GEARING RATIO AVERAGE BORROWING COST FIXED-RATE DEBT RATIO 19.5% 3.78% 69.8% CREDIT RATINGS EBITDA INTEREST COVERAGE A Stable A2 Stable A Stable 4.3x S&P Moody’s Fitch DEBT PROFILE BREAKDOWN DEBT MATURITY PROFILE (HK$ b
Slide 21: Strategy Update
04 STRATEGY UPDATE 01
Slide 22: Creating Value for Unitholders under Link 3.0
22 Creating Value for Unitholders under Link 3.0 Through the two distinct businesses that Link REIT owns LINK REAL ESTATE INVESTMENT TRUST (“LINK REIT”, 823.HK) Link Asset Management Limited (“Link”) Link REIT Portfolio Capabilities Investments Investment Management Interests in Real Estate • Active
Slide 23: Link 3.0 Investment Strategy
23 Link 3.0 Investment Strategy Focus on markets with long-term strategic prospects GEOGRAPHICAL FOCUS RATIONALE Key developed markets in APAC, 3 key attributes benefiting Link in such as Australia, Japan, Singapore these markets: ❖ Low investment risk – Market Australia – Attractive valuations due
Slide 24: Q&A
05 Q&A 01
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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