Link Asset Management, manager of Link REIT has boosted its six month revenue by 9.3 per cent, with net property income up 11.2 per cent.
An interim distribution of HK 98.99 cents per unit marks an increase of 10.5 per cent over the same period last year.
“Our two new acquisitions, EC Mall in Beijing, and Corporate Avenue 1 & 2 in Shanghai, complement our expanded investment and development activities in Hong Kong, enabling us to take advantage of opportunities across a property’s life cycle and in different industry sectors,” explained Nicholas Sallnow-Smith, chairman of Link Asset Management.
“The asset enhancement program continues to be the mainstay of our performance. As evidenced in our strong financial results, our services and properties are adding value through serving the communities of which our assets form a part.”
George Hongchoy, CEO, said the result reflected the success of a cautious diversification of the asset portfolio to manage geographic and asset-class risk exposures.
“We are focusing on locations that will have long-term demand. Our expanded set of growth drivers and focused business strategy, coupled with our strong capital management, should allow us to capitalise on multiple growth opportunities in years to come,” he said.
“While mass market retail properties are our focus, diversification into the office sector enhances overall quality of our portfolio to generate a better return. Hong Kong remains our priority, complemented by a prudent investment scope in Mainland China, where we seek to acquire properties in tier-one cities. Our allocation into office and Mainland will each not exceed 12.5 per cent of our total portfolio value.”
During the six months Link completed asset enhancement works at Tsing Yi Commercial Complex and Temple Mall North. The latter has undergone an extensive upgrade to capitalise on the enhanced connectivity and synergy of Link’s property cluster in the Wong Tai Sin district.
Link’s Kowloon East commercial development remains on schedule and will become a landmark building in the new CBD, offering expansive harbour views and targeting to achieve Platinum certification for both Leed and HK-Beam.
Acquired in April and August respectively, EC Mall and Corporate Avenue 1 & 2 started to contribute revenue during the period. Link has raised the occupancy of EC Mall to 100 per cent and achieved a composite reversion rate of 33.7 per cent.
In October, as earlier reported, Link accepted tenders for the disposal of five properties, achieving sale prices that exceed valuation as at 30 September 2015 by over 30 per cent.