Lead per unit distribution rose 8.7% optimistic about the rental outlook
Lead Development (00823) benefited from renewed rent adjustment of 26.8%, a record high for the first half of the year. As a result, attributable income for the six months ended September ended up 7.2% YoY to 2.673billion yuan, up 8.7 per unit. % To 121.5 cents, as expected.
Nie Yalun, chairman, said that there is already a lot of data to reflect that the retail market in Hong Kong has bottomed out and the non-essential consumer goods businesses in its shopping malls have seen strong increases in business. Therefore, they are confident that the retail prospects in Hong Kong will be better. Chief Executive Wang Guolong added that the Group still recorded a strong rent increase of 26.8% in the past few months when the retail market in Hong Kong was normal. I believe rent growth will be better in the coming months.
Renewal rent rose 26.8% over the same industry
In the first half of 2010, the overall property portfolio increased by 26.8% in rent increase (average three-year lease), with retail rents up 28.5% and markets up 12.8%. Although the rate of rent increase is higher than that of its competitors, the monthly sales of merchants still have an increase of 7.2% and the ratio of rent to sales is 12.7%. The Group’s overall retail rental income increased 5.3% YoY with an average monthly rental rate of 6.7%. The rent per square foot rose from HK $ 55.3 at the end of March to HK $ 59.
Nomura Hong Kong real estate research department director Guo Meishan said that when Hysan (00014) and Wharf (00004) stores are difficult to increase rent in the first half, and even individual cases of rent reduction, the first half of the extension of the renewal of lease rates remain Which reflects 26.8% of the Group’s performance. With the continuous improvement of its property yield over the past 10 years, it is believed that the average annual compound growth rate (CAGR) of each unit allocated by LCR for the next three years can reach as high as 7.5%. She said the market is expected to raise the projection for each unit of the future due to the favorable condition of LPR and the future focus on the continued success of LCR’s strategic assessment of the asset pool.
Morgan Stanley believes that the first half of the lead renewal rental rate adjustment rose to a new high of 26.8%, but the sales rent ratio remained at a reasonable level of 12.7%, reflecting the Group’s rental income growth more than investors expected, Coupled with the Mainland property rental increase strong, I believe the market will have a positive response to the performance of the show.
In the first half of the year, Linkfin completed a total of 6 asset-raising projects involving an investment of 517 million yuan. The expected return on investment ranged from 17.6% to 37.7%.