9M FY2024/25 Operational Update
Presentation
25 March 2025
Agenda
01 Highlights
02 Operational Update
03 Financial
04 Other Updates
05 Q&A
Executive Summary
• Highly uncertain global context with prolonged high interest rates, uncertainty around the global economy, and geopolitical tensions.
• Outlook in our key markets looks challenging, particularly Hong Kong where retail and property sectors are undergoing structural change.
• Link's business continues to show high level of resilience but impact nonetheless being felt in terms of pressure on rental reversions.
• Diversification strategy has enhanced resilience of the business and earnings, and Link continues to pursue 3.0 strategy in terms of (a) active management of Link REIT portfolio, (b) expanding our real estate investment management business.
• Launch of Link Real Estate Partners an important milestone but development of this business will take time.
Navigating Shifts in Policy and Heightened Uncertainties; Divergence Amongst Key Markets
5
Geoeconomic Confrontation
Macroeconomic Outlook for Key Markets
Hong Kong
Mainland China
GDP: Expected real GDP to grow 2-3% in 2025(1)
Full-year GDP target: ~5% for 2025(2) Inflation: Forecast at ~2% for 2025(2)
Inflation: Estimated 1.5% for 2025(1)
Policy measures: Support policy for dominant finances services for an increase in IPOs & trading volume(1)
Policy measures: Consumption boost campaign and doubling trade-in subsidies to RMB 300 billion(2)
Singapore
Australia
GDP: Growth forecast for 2025 at 1-3%(3)
Interest rate: rate cut of 25bps to 4.1%
in Feb 2025; RBA cautious about
further easing
Inflation: Forecast average 1.0-2.0% in 2025(4)
Economy: Growth expected to pick up
in 2025 and population growth to stay
Retail Sales: Issuance of consumption vouchers of S$600-800 (approx. HK$3,500 - 4,600) for citizens above 21(5)
robust (6) (7)
Inflation: Expected inflation to slow to 2.7% by June 2025(6)
Notes: | (4) | MAS Monetary Policy Statement - January 2025, Monetary Authority of Singapore, Government of Singapore |
(1) 2025-26 Budget, HKSAR Government. S&P Global, February 2025 | (5) | Budget 2025, Ministry of Finance Singapore, Government of Singapore |
(2) News as of 5 March 2025 on Two Sessions, Bloomberg | (6) | Statement on Monetary Policy - February 2024, The Reserve Bank of Australia |
(3) Press release as of 14 February 2025, Ministry of Trade and Industry, Government of Singapore | (7) | Australian government projections, December 2024 |
Link REIT Portfolio
Portfolio Value (1)
Hong Kong: 130 assets
74.1%
51.6%Retail(2)
19.9%2.6%Office
Car Parks and Related Business(3)
Mainland China: 6 retails, 1 office, 5 logistics
14.8%
11.5%
2.2%Office 1.1%Logistics
Retail
Australia, Singapore, United Kingdom: 5 retails, 7 offices
11.1%
7.2%Retail 3.9%Office
▪ Optimise our portfolio by continuing to explore opportunities in APAC markets, such as Australia, Japan, and Singapore, but maintain a high bar for the right acquisitions and inorganic M&A.
▪ Link officially launched Link Real Estate Partners, a private fund management business line.
Notes:
(1) As at 30 September 2024, the total property valuation which includes 100% value of The Quayside, Dongguan and Foshan logistic facilities and 49.9% value of the prime office portfolio in Sydney and Melbourne.
(2) Including a property under development for non-office commercial-use.
(3) Including two car park/car service centres and godown buildings in Hong Kong.
Overall Portfolio - Solid Occupancies Maintained
Occupancy Summary
(As at 31 December 2024)
Hong Kong
Mainland China
International
97.1%
Retail
94.1%
Retail
99.5% (1)
Australia Retail
Notes:
(1) Represented 50% interest in three retail properties in Sydney.
99.2%
Office
90.3%
Office
100.0%
Singapore Retail
96.6%
Logistics
90.8% (2)
Office
(2) Included 100 Market street, 49.9% interest in a prime office portfolio in Sydney and Melbourne, as well as The Cabot in London.
(3) All figures for the period ended or as at 31 December 2024 unless stated otherwise.
Operational Highlights
Hong Kong
The resilience and stability of non-discretionary retail and premium office assets are evidenced by continued high occupancy rates.
Mainland China
Mainland China maintained healthy occupancy rates across different asset types, underscoring the effectiveness of our focussed leasing initiatives.
International
The Australian and Singaporean retail assets both reported almost full occupancy levels, reflecting solid leasing demand, compared to the ongoing challenges in the office market in Australia.
Hong Kong Retail - Reversion Registered a Mild Decline Amidst Challenging Market Conditions
0%
Tenant Sales Growth
(1)
(April - December 2024)
Link Hong Kong
-10%
-11.3%
-20%
Occupancy Cost (1) (April - December 2024)
Food & Beverage Supermarket & Foodstuff
General(2) Retail Overall
2019/2020
9M 2024/2025
Notes:
(1) Percentage figures represent year-on-year change in tenants' average monthly sales per square foot.
Food & BeverageSupermarket & Foodstuff
▪ The growth of tenant sales was hindered by the shift in consumption patterns of visitors and residents.
▪
2020/2021
2021/2022
2022/2023
2023/2024
1Q 2024/2025
1H 2024/2025
Occupancy costs slightly came down compared to 1Q 2024/25 and 1H 2024/25, suggesting a possible stabilisation of the conditions.
(2) Including clothing, department store, electrical and household products, personal care/medicine, optical, books and stationery, newspaper, valuable goods, services, leisure and entertainment, and other retail.
(3) A ratio of base rent (excluding management fee) to tenant retail gross sales per square foot.
10
Hong Kong Car Parks - Sustained Modest Growth Momentum
Number of Parking Tickets
Parking Tariffs
Parking Revenue
Minor Decline
Rise with Market Rate
Modest Growth
(For the 9 months ended 31 Dec 2024)
(For the 9 months ended 31 Dec 2024)
(For the 9 months ended 31 Dec 2024)
Revenue from Car Parks Business
Hourly car parkMonthly car park
Car park related business(1)
1H 20/21 2H 20/21 1H 21/22 2H 21/22 1H 22/23 2H 22/23 1H 23/24 2H 23/24 1H 24/25
Notes:
(1) Refers to contributions from two car park / car service centres and godown buildings in Hung Hom and Chai Wan.
▪ The number of parking tickets saw a slight decrease in the first nine months of the year compared to the same period last year.
▪ Nevertheless, parking revenue experienced modest growth, compensated by the rising parking tariffs that align with market rates.