Hong Kong shopping mall operator Link REIT gives investors bigger payout
Trust says revenue grew in all areas as it drew more tenants to its malls, helping it beat a slowdown in Hong Kong’s economy
Link Real Estate Investment Trust (Link REIT), which runs shopping malls and car parks in Hong Kong, said its total distributable income for the year to March 31 was up 12.4 per cent to HK$4.57 billion.
Final distribution per unit to be paid to unit holders amounted to 107.19 HK cents, as compared to 93.28 HK cents over the same period last year.
Link Asset Management, the manager of Link REIT, which had been set up by the government in 2005 to hold assets spun off from the Housing Authority, said on Wednesday its retail portfolio had showed its resilience in a challenging economic environment in Hong Kong.
The trust achieved growth in nearly all areas of retail operations, due largely to an active leasing strategy to attract more productive tenants, it said.
Revenue rose to 13.2 per cent year-on-year to HK$8.74 billion, while net property income rose 14.9 per cent year-on-year to HK$6.51 billion. Occupancy rate for the portfolio as at March 31 reached 96 per cent. It achieved a 6.7 per cent year-on-year retail rental growth. Net asset value per unit grew 10.2 per cent year-on-year to HK$56.79 .
Car park income per space per month increased by 14.4 per cent to HK$2,022 for the year.
The company completed the acquisitions of EC Mall in Beijing in April 2015 and Corporate Avenue 1 & 2 in Shanghai in August 2015.
EC Mall’s occupancy rate reached 100 per cent in March, while office occupancy at Corporate Avenue was also 100 per cent, it said.
The trust said a 10-year car park refurbishment programme that started in 2013 with a total
investment of approximately HK$300 million has been progressing well.
Link REIT has 11 enhancement projects underway with another eight to start and over 16 other projects currently undergoing reviews, taking its asset enhancement pipeline into 2020.