The limit of investment in the Mainland of the Link is increased to 20%. In the medium term, the unit is 130.62 cents per unit.
The Link Real Estate Fund (00823) announced that as of the end of September this year, the distributable income increased by 5.95% year-on-year to 2.759 billion yuan; 130.62 cents per fund unit, an increase of 7.51% over the same period last year. During the period, revenue fell 0.38% to 4.93 billion yuan, and net property income fell slightly to 3.759 billion yuan.
Chief Executive Wang Guolong said that the mainland’s funds are tight, and some of the domestic houses are seeking to sell projects to the exhibition. The exhibition also plans to increase the upper limit of China’s investment ratio from 12.5% to 20%.
Hong Kong property rent increased to 65.7 yuan
As regards the performance of Hong Kong property portfolio leasing, as of the end of September, the average monthly rent was 65.7 yuan per square foot, which was about 5% higher than the 62.4 yuan at the end of March. The occupancy rate during the period was 95.5%, which was lower than the 97% at the end of March. Percentage point; the overall property portfolio renewal rent adjustment rate is 22.5%. Retail sales of Hong Kong property tenants rose by 7.2% year-on-year. The medium-term rent increase and occupancy rate have slowed slightly compared to the past. Wang Guolong said that the increase in rents depends on the growth of individual leases and tenants’ sales. It is difficult to assess them on a semi-annual basis.
First-tier cities, shopping malls, malls
Looking ahead to the performance of the retail market, Wang Guolong believes that in the context of interest rate hikes, trade wars and stock market volatility, the people’s shopping intentions will be affected, but their shopping malls are mainly for the sale of daily necessities and restaurants, less subject to the external environment, and believe in the future. One year’s performance will be good.
China’s investment in Linkage accounted for 8.2% of the total assets. Wang Guolong revealed that he plans to increase the cap of China’s investment from 12.5% to 20%. He noticed that the performance of China’s properties in the past few years has grown considerably compared to Hong Kong, and the current Chinese assets. The proportion is gradually approaching the level of 12.5%. It is believed that the increase in the target ratio will increase the level of growth space and facilitate future development, but there is currently no timetable for compliance.
For the Mainland consumer market, there is a sign of a slowdown. Wang Guolong believes that the performance of retail properties is related to the location. The company hopes to acquire tenants for sale and the ideal location. Currently, it is looking for acquisition opportunities in four first-tier cities. The target is still shopping malls and Grade A. Commercial building.
He also pointed out that due to the tight capital in the Mainland, some Chinese housing companies are seeking to sell projects to the exhibition. If the domestic financing difficulties are sustainable, they can drive Chinese sellers to speed up the sale of the project and let the leader to acquire the project at a good price.
Earlier, the Hong Kong Government’s Policy Address announced that more public markets would be built. Asked if he would worry about the impact of the new policy on the performance of the exhibition market, Chairman Nie Yalun said that he welcomes the promotion of relevant policies and believes that it can help the industry to compete in good competition.
Wang Guolong pointed out that in the past, the exhibition has optimized nearly 40 markets, and tenants and consumers have responded positively. During the performance period, four asset enhancement projects have been completed, including Tai Po Fu Shan Shopping Centre and Ho Man Tin Plaza.