Hong Kong Real Estate Leader Link REIT Spent HKD 7.7 Bn on Mainland Assets

Consumer Staples Author: Sasha Chen Jun 03, 2022 01:03 AM (GMT+8)

On June 1, Link REIT held the annual earnings call for the year ended March 31, 2022. Last year, Link REIT also spent over HKD 7.7 billion on purchasing 17 mainland properties.

real estate

Managed by Link Asset Management Limited, Link REIT (OTCMKTS: LKREF 领展房地产投资信托基金) is the first real estate investment trust listed in Hong Kong.  Their business services consist of three pillars, including asset management, portfolio management, and capital management.  Some of Link REIT's top competitors include Spirit Realty Capital (NYSE: SRC 思必瑞特不动产公司), Saul Centers (NYSE:SSL 索尔中心), and CBRE Group (NYSE: CBRE 世邦魏理仕).

The company's invested assets reached a total value of over HKD 212 billion, an increase of 6.9% year on year. During the reporting period, the company’s revenue and net property income increased by 8% and 6.5% year on year, respectively.

In recent years, Link REIT has been accumulating assets and become the largest real estate investment trust in Asia. The company has spent a total of over HKD 11 billion on 17 assets around the world, further diversifying its portfolio of assets geographically.

As of the end of March 2022, the company owned a total of 151 property assets, among which 74% of them are in Hong Kong and 17.4% are located in Mainland China. In terms of property asset type, 68.4% of the total value of Link REIT' assets were contributed from retail properties, 17.6% from parking lots, 12.7% from office buildings, and 1.3% from logistics properties.

Since April 2021, The Link has seized the market opportunity and set aside HKD26 billion to acquire quality assets. The company believes that this is an excellent move and will generate rental income growth in the next two years.