[ET Net News Agency, 12 May 2020] Daiwa Research lowered its target price for Link REIT
(00823) to HK$84 from HK$97.6 and maintained its "buy" rating.
The research house has examined the outlook for Hong Kong's retail property sector, as
well as Link REIT's 4 May announcement regarding a likely decline in the valuation of its
retail property assets.
Daiwa said Link REIT is facing are more cyclical than structural by nature and that
there exists room for it to expand its share of the Hong Kong retail pie, which stands to
be re-set. Daiwa does not believe Link's portfolio is ex-growth yet, and sees market
concerns having created a buying opportunity in Link REIT units now.
To take into account this rental relief and prevailing challenges in the Hong Kong
retail market, Daiwa revised down its FY2020-22 DPU (distribution per unit) by 6-17%. (KL)