Link Show (823) spent 3.67 billion yuan to purchase Sydney properties, increase asset value, and resume repurchase to support stock prices, which is good for dividends
The stock price has retreated from a high of 99.8 yuan in July to a low of 77.05 yuan at the beginning of this month. It has recently rebounded by more than 80 yuan. It may be collected in segments. The target is 96 yuan, with a potential increase of 20%.
Earlier, Linkshow announced the acquisition of a 10-storey Grade A commercial building in Sydney for 683 million Australian dollars. It can be said that it purchases first-class assets at market prices and acts as a room care fund to create a reasonable and relatively low-risk method for unit holders. value.
Committed to adding value to the asset portfolio
As the acquired property has only 3 large tenants, and the lease does not need to be renewed until 2027 to 2030, the risk is relatively low and the acquisition return is reasonable. The monthly rental income of the Australian mansion A is about A $ 26.7 million. After adjusting the annual rent increase of 4%, the net property income yield can be increased to 4.1%, which is sufficient to cover the 2% interest rate of the Australian dollar loan and 15% of the rental income. Tax deductions have added value to the asset portfolio.
Hong Kong is the main base for the show. Due to the low borrowing ratio, it is still looking for local property projects. Currently holds a total of 126 properties in Hong Kong, accounting for 87.5% of the total 220 billion property portfolio, while the Mainland accounts for 12.5%. With Link, the maximum investment proportion in the Mainland has been increased from 12.5% to 20% and this time it is expected to enter overseas. The proportion of Hong Kong properties will drop to 70 to 75%, while the proportion of overseas properties will not exceed 10%. As of the end of September this year, the total amount of distributable Linking reached 2.966 billion yuan, an increase of 7.5% year-on-year; the medium-term distribution per fund unit increased by 8.3% to 141.47 cents. The annualized dividend yield is 3.6%. During the period, net income and property income increased by 8.2% and 8.3% year-on-year to 5.332 billion yuan and 4.071 billion yuan, respectively. The valuation of the investment property portfolio reached 220.434 billion yuan. The net asset value of each fund unit increased by 1.2% to 90.58 yuan.
Property occupancy rates remain high
The Group’s total retail property revenue increased by 8.9% year-on-year. As of the end of September, the occupancy rate of the property portfolio remained at 96.9%; and the renewal rent adjustment rate of the overall property portfolio remained at 18.1%. The average monthly rent rose from 68 yuan per square foot at the end of March to 69.6 yuan at the end of September. The Group has been improving its property conditions through asset enhancement measures. So far, 80 asset enhancement projects have been completed, and two projects, Nanchang Hui and Caiming Mall, have been completed in the first half of the year. The total income of the Mainland property portfolio was 732 million yuan, and the net property income was 578 million yuan, an increase of 49.4% and 48.2% year-on-year, respectively. As of the end of September, the four properties in the Mainland were almost fully leased out, with an average occupancy rate of 99%. During the period, the average rental renewal rate for the retail property portfolio reached 31.5%.
As real estate investment trusts (REITs), LinkedIn’s property portfolio in Hong Kong is close to the lives of residents, most of which are connected to public housing estates, and are not areas with frequent public activities in Hong Kong. It is believed that its tenants have been negatively affected by social events in the past six months fine.