Link Reit H1 DPU down 5.9% at HK$1.2688 amid macro headwinds, sectoral challenges

[SINGAPORE] Hong Kong-listed Link Real Estate Investment Trust (Reit), which owns Singapore’s Jurong Point and a major part of Thomson Plaza, recorded a distribution per unit (DPU) of HK$1.2688 for its first half-year ended Sep 30, down 5.9 per cent from HK$1.3489 previously.

The Reit, Hong Kong’s biggest, was recently reported to be considering a real estate investment trust listing in Singapore that would include some of its properties outside of China and Hong Kong.

For the first half, distributable income fell 5.6 per cent to HK$3.3 billion (S$551.6 million) from HK$3.5 billion before, said its manager Link Asset Management on Thursday (Nov 20).

For H1 FY2026, net property income slipped 3.4 per cent to HK$5.2 billion, from HK$5.4 billion in the previous corresponding period. Revenue dipped 1.8 per cent to about HK$7 billion.

George Hongchoy, the outgoing group chief executive officer of the manager, said: “The first half of the financial year has been marked by persistent macroeconomic headwinds and sector challenges, particularly in Hong Kong and the Chinese mainland.”

While the Reit’s results “reflect these pressures”, Hongchoy noted that it recorded “healthy occupancy” across its portfolio alongside lower occupancy costs amid operational efficiency, active management and streamlining efforts.

As at September 2025, Link Reit’s Hong Kong retail portfolio had a 97.6 per cent occupancy rate, with more than 345 new leases signed during the reporting period. Average monthly unit rent fell to HK$62.10 per square foot (psf) from HK$63.30 psf as at March 2025.

Its rental reversion rate was a negative 6.4 per cent.

The manager noted that tenant sales recorded a 2.1 per cent year-on-year decline. It added that, among retail segments, the supermarket and foodstuff categories posted a 0.5 per cent growth.

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Link Reit’s net asset value per unit dropped 3.3 per cent to HK$61.19, compared with HK$63.30 as at the end of March.

Duncan Owen, the manager’s chairperson, remarked that there have been signs of improving market and consumer sentiment across Asia-Pacific, including Hong Kong, although “rental income growth will take time to materialise”.

In response to consumer demand, the Reit’s manager undertook asset enhancement projects at Lei Yue Mun Plaza and TKO Spot during the period under review, investing HK$59 million and HK$21 million, respectively, in these projects. It also carried out smaller enhancement works in other properties in its Hong Kong portfolio.

Looking ahead, Hongchoy said that the Reit will “continue to explore investment opportunities, particularly in Singapore and Australia, while also looking into opportunities to divest and recycle assets”.

Link Reit is the second-largest Reit in Asia. Its portfolio spans retail facilities, car parks, offices and logistics assets in China, Australia, Singapore and the UK.

Its Singapore portfolio includes Jurong Point and Swing By @ Thomson Plaza, which had market values of S$2.2 billion and S$200 million, respectively, as at Mar 30, 2025.

The Reit bought Jurong Point and the first and third levels of Thomson Plaza from NTUC unit Mercatus Co-op for S$2.16 billion two years ago.