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LINK REIT (00823.HK) Steady Against Market; JPM Upgrades to Overweight
2026-06-26 11:57:35 LINK REIT (00823.HK) opened 0.88% higher today (26th), hitting an intraday high of HKD37.68. It is currently trading at HKD36.44, up 0.72%, with turnover of 11.2892 million shares, involving HKD419 million. JPMorgan published a research report stating that after an 11% correction from its mid-May peak, LINK REIT now presents a good entry point to accumulate fund units. Its dividend yield of 6.9% is attractive, and a share buyback is expected to commence in July. Together with stabilizing tenant sales and spot rents, the broker believes the overall upside risk outweighs downside risk, and therefore upgraded its investment rating from Neutral to Overweight. The broker noted that after two years of decline, LINK REIT's Hong Kong tenant sales turned to YoY growth of 0.7% in 4QFY26 ended March 2026, and the positive growth momentum is expected to extend into 1QFY27 ended June 2026. Management has guided that spot rents have stabilized. Although renewal rental reversion for FY27 is expected to remain negative at a high single-digit rate, if spot rents stay stable, the negative reversion in FY28 will narrow and is expected to bottom out in FY29. In addition, amid recent pressure in Hong Kong's residential market and weak Hong Kong equities, investors are expected to rotate from property developers to high-yield landlords such as LINK REIT. JPMorgan raised its target price for LINK REIT to HKD43 from HKD42 for the period ending June 2027, reflecting a lower risk-free rate assumption of 4.4%. The broker forecasts distribution per fund unit of HKD2.51 for FY27 ending March 2027, and HKD2.52 for both FY28 and FY29. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |