Link Real Estate Investment Trust (823) H1 2026 earnings summary

Executive summary

• Delivered resilient results amid macroeconomic and market challenges, with revenue and net property income declining 1.8% and 3.4% year-over-year, mainly due to negative rental reversions in Hong Kong and the Chinese Mainland, while international and car park segments remained strong.

• Operational efficiency and cost control initiatives were launched, targeting over HKD 200 million in annualized savings, and a CEO transition is underway with interim management in place.

• Focused on diversification of capital sources, prudent capital management, and portfolio enhancement to support resilience and future growth.

Financial highlights

• Net property income declined 3.4% year-over-year to HK$5,178M; distribution per unit fell 5.9% to HK126.88 cents; total distributable amount down 5.6% to HK$3,283M.

• Portfolio valuation at HK$223B as of September 2025, down 1.3% from six months ago; net asset value per unit dropped 3.3% to HK$61.19.

• Net gearing at 22.5%, average all-in borrowing cost reduced to 3.22%, and 65.8% of debt at fixed rates.

• Ample liquidity of HK$9.4B and over HK$10B in new financing arranged at competitive rates.

Outlook and guidance

• Negative rental reversions in Hong Kong and the Chinese Mainland expected to persist in the short term, with operating conditions likely to worsen slightly before stabilizing and gradual recovery anticipated, supported by market stabilization and potential US interest rate cuts.

• Cost control benefits to be fully realized in the next financial year, targeting HKD 200 million in annualized savings.

• Consumer sentiment expected to gradually improve, with a lagged impact on property income.