BUY
Last Traded Price (4 Jun 2021): HK$74.10 (HSI : 28,918)
Price Target 12-mth: HK$80.40 (9% upside) (Prev HK$79.35)

Growing China retail footprint


Investment Thesis


BUY with HK$80.4 TP. Link REIT offers distribution yield of 4.2% for FY22. This translates into a yield spread of 2.8%, slightly higher than its average. We continue to like Link REIT for its solid recovery story.

To benefit from local consumption recovery in Hong Kong with its large portfolio of community/neighbourhood malls. With the COVID outbreak gradually subsiding on one hand and the government’s vaccination roll-out on the other, local consumption should continue to recover. The upcoming
distribution of electronic consumption vouchers should help further stimulate local retail spending China portfolio expansion to add long-term growth momentum. China portfolio represents 16.6% of Link REIT’s total appraised value following the acquisition of Happy Valley Shopping Mall in Guangzhou. With strong catchment, this mall should offer good long-term growth potential with the aid of asset enhancement, tenant and trade mix optimisation and
property re-positioning