[ET Net News Agency, 3 June 2020] BOCOM Research lowered its target price for Link REIT
(00823) to HK$74.6 from HK$93.35 and maintained its "buy" rating.
The research house expects Link's HK rental reversion (moderated to 12.6% in FY2020 from
22.5% in FY2019) to further slow to a low single-digit or even turn negative. It thinks
Link's DPU will still grow a mid-single-digit, supported by rental growth of its mainland
China portfolio, a ramp-up of Quayside, full contribution of AUS 100 Market Street, and
its discretionary contribution program until FY2022.
As of end-Mar, its financial conditions stayed strong with a gearing ratio of 16.7% and
HK$7.9bn cash in hand. BOCOM believes Link's current strong balance will back strategic
acquisitions and further share buyback. (KL)