Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — Investor Presentation (October 2022)
15 slides from Link Real Estate Investment Trust's investor presentation, October 2022
Slide 1: Corporate Presentation
Corporate Presentation October 2022
Slide 2: Operational Update
01 Operational Update
Slide 3: 1Q FY 2022/23 Operational Highlight
3 1Q FY 2022/23 Operational Highlight High occupancies and Hong Kong continues to deliver ▪ Most portfolios maintained high/full occupancies ▪ Hong Kong Resilient with good momentum on retail rental reversion and stable car park income growth ▪ Mainland Challenging environment with COVID lockdowns.
Slide 4: Hong Kong Retail
4 Hong Kong Retail Back to 95% of pre-COVID level Strong Q1 Tenant Sales Growth Outperforming Hong Kong 7.8% 5.8% 5.9% -1.7% 1.0% -9.4% Link Hong Kong -16.1% -19.1% 1Q 2019/2020 2019/2020 2020/2021 2020/2021 2021/2022 2021/2022 1Q 2022/2023 2022/2023 Link Hong Kong Food & beverage 0.1% -5.5% Superma
Slide 5: Hong Kong Retail
5 Hong Kong Retail Rent-to-sales ratio remains healthy Food & beverage Supermarket & foodstuff General retail (2) Overall 14.5% 13.3% 12.9% 11.1% 2019/2020 2020/2021 2021/2022 1Q 1Q 2022/2023 2019/2020 2020/2021 2021/2022 2022/2023 ▪ Occupancy cost (1) edging down as tenants’ sales continued to impr
Slide 6: Mainland China
6 Mainland China Challenging operating environment Retail Office Logistics ▪ Operational metrics affected by occasional ▪ Expect asset ▪ Stable income with outbreaks and lockdowns enhancement to embedded rental be completed by escalations ▪ Concessions to be granted to support tenants year-end ▪ Res
Slide 7: Overseas
7 Overseas Stable business with positive outlook Office Retail ▪ Back-to-office rate is in gradual recovery ▪ Retail sales and tenant demand are well supported by post- ▪ High occupancies with long WALE pandemic recovery ▪ Joint Venture in a Prime Office Portfolio in Sydney and Melbourne ▪ Completed
Slide 8: Prudent Capital Management
8 Prudent Capital Management Maintained a strong credit profile, despite a rising rates environment • Gearing remained steady at mid 20% • Stable credit ratings supported by resilient financial metrics • Fixed-rate debt ratio in the range of 50%-70% (2) As at 31 March 2022 Debt Maturity Profile (3)
Slide 9: Factors Overshadowing Capital Management
9 Factors Overshadowing Capital Management Mitigate rising funding costs and unfavourable forex movement via effective hedging Upper Bound of Fed Fund Target Rate & 10-year Foreign Currency Movement US Treasury Yield Fed Fund Upper Bound Rate 10-year UST yield USD Index CNHHKD 112.117 1.25 114 4.0%
Slide 10: Strategy Update
02 Strategy Update
Slide 11: Optimise Returns via Asset Enhancement
11 Optimise Returns via Asset Enhancement Leverage Link’s expertise to unlock the potential of assets Revitalised Tak Tin Market opened in August 2022 ✓ About 40% of existing Link tenants expanded their businesses at Tak Tin Market ✓ Diversified trade mix by redesigning the stall layout for wet good
Slide 12: Anderson Road Commercial Site
12 Anderson Road Commercial Site Opportunistic development of suburban community commercial in Hong Kong Attractive standalone parcel of commercial-use land off Anderson Road (1) • Synergies with existing Link’s portfolio (2) • Early stage acquisition with lower entry cost • Acquired at ~8.8% discou
Slide 13: Portfolio Management Focus
13 Portfolio Management Focus Anchored across markets to enhance income stability and long-term growth opportunity (1) Portfolio Management • Continue to look for opportunities strategically in Hong Kong, Mainland top-tier cities, Australia, Japan and Singapore • Awaiting opportunities with the righ
Slide 14: Priorities and Outlook
14 Priorities and Outlook Committed to delivering stable income & sustainable returns Asset Management Capital Management Factors affecting distribution in 1H 2022/2023 Bought back and cancelled more than the announced Strive to maintain high occupancy Manage finance costs amidst a rising HK$150M wo
Slide 15: Disclaimer
15 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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