Link REIT interim distributable income rises 0.4 per cent as Hong Kong retail rent revision falls nearly 8 per cent
Link REIT reported a 0.4 per cent year-on-year rise in interim distributable income to HK$3.295 billion for the six months to end-September, while Hong Kong retail rent revision dropped 7.5 per cent. Total revenue fell 1.6 per cent to about HK$6.91 billion, reflecting weak non-discretionary retail r
Link REIT, the real estate investment trust spun off from Hong Kong's public housing authority, on 12 November reported a 0.4 per cent year-on-year increase in its interim distributable income to HK$3.295 billion for the six months ended 30 September. The distribution per fund unit edged up to 127.25 Hong Kong cents, while profit attributable to unitholders before deductions stood at nearly HK$800 million, compared with a loss of HK$1.61 billion in the same period last year.
Total revenue for the half-year fell 1.6 per cent to about HK$6.91 billion, mainly due to lower rent renewal rates in Hong Kong. The company attributed the decline to a lagging recovery in non-discretionary retail spending and the continued evolution of online consumption patterns. Net property income slipped 0.8 per cent to just over HK$5.1 billion.
Rent revisions on retail property renewals in Hong Kong and mainland China fell 7.5 per cent and 8.7 per cent, respectively. As of 30 September, occupancy rates stood at 97 per cent in Hong Kong and 97.5 per cent on the mainland.
The total valuation of Link REIT's property portfolio as of 30 September was nearly HK$213.3 billion, down 1.5 per cent from 31 March. The decline reflected the impact of asset disposals and fair-value changes, partly offset by the appreciation of foreign currencies against the Hong Kong dollar.