Link Real Estate Investment Trust : Annual Results Presentation Published in May 2024

Annual Results 2023/2024 Analyst Presentation

29 May 2024

Agenda

2

			01	02	03
				Annual Results		Operational	Capital
				Highlights		Update	Management
	The Quayside
04		05	06	07
	Strategy Update		Market Outlook		Q&A	Appendix
		and Mitigation

Queen Victoria Building

Jurong Point

Link CentralWalk

Kai Tin Shopping Centre

01

Annual Results Highlights

FY2023/24 Key Highlights

4

Achievements through proactive portfolio management

Link REIT Portfolio

Asset Enhancement

Capital Management

Hong Kong portfolio

Mainland China

Commitment to

Portfolio

operational excellence

outperforming

portfolio bearing fruit

diversification

remains steadfast

Link

portfolio

tenant sales

Retail rental reversion

Upgrade of

car park

Australia and

Singapore

growth index outpaced that

turned positive to 2.8%

management

system to

retail performance

started

of broader Hong Kong at

boost efficiency

contributing

to

overall

101.3

since

FY2018/2019

portfolio

vs. 85.3 by the latter

FY2023/24 Key Highlights

5

Asset enhancement efforts yielded solid results

Link REIT Portfolio

Asset Enhancement

Capital Management

Double-digit ROIs achieved	Four assets in Hong Kong	One asset in Mainland China
	completed AEs		completed AE
Achieved double-digit ROIs from	In Hong Kong, HK$230M AEs across	In Mainland China, the completion of
AEIs in Hong Kong and Mainland	4 assets was completed, achieving	the RMB300M AE at Link Plaza
China	ROI ~ 10 - 16%	Tianhe in 1H FY23/24 (ROI ~ 12%)
						while the commenced renovation of
						Link CentralWalk basement with AE
						budget of ~ RMB24M and expected
						ROI exceeding 20%

FY2023/24 Key Highlights

6

Prudent approach to capital management

Link REIT Portfolio

Asset Enhancement

Capital Management

Strong financial position		Well-staggered debt
	maturity profile
Net gearing ratio maintained below	Not more than 20% total debt maturing
20%, average borrowing cost kept	in a single year over the next two

below 4.0% at 3.78%, underpinned by	financial years (FY2024/2025: 15%
robust 'A' credit ratings	and FY2025/2026: 19%)

FY2023/24 Annual Results Highlights

Steady growth from diversification amid headwinds

7

Lok Fu Place

HK$13,578M

REVENUE

11.0% YoY

HK$10,070M

N P I

9.5% YoY

Jurong Point

HK$6,718M

DISTRIBUTABLE

AMOUNT 6.4% YoY

HK$2.6265

D P U

4.3% YoY

Qibao Vanke Plaza

19.5%

NET GEARING RATIO

(31 March 2023: 17.8%)

HK$70.02

NAV PER UNIT

5.4% VS MAR 23

Note:

(1) All figures for the year ended or as at 31 March 2024 unless stated otherwise.

FY2023/24 Annual Results Highlights

8

Occupancy remained high with sustained revenue and NPI

		HK retail occupancy consistently at near-full level					Revenue remained steady
		1H			2H	97.7%		98.0%	98.0%	98.0%				1H		2H
			97.5%	97.5%									6,853
															5,778	5,824	6,042	6,192	6,725

2021/20222022/20232023/20242021/20222022/20232023/2024

					NPI started to moderate in 2H							DPU in 2H registered a HoH increase
		1H		2H			5,063	5,007				1H		2H
	4,391	4,385	4,587	4,611					1.5959	1.4608	1.5551	1.3008 1.3257
											(2)
																	1.1880

2021/2022

2022/2023

2023/2024

2021/2022

2022/2023

2023/2024

Notes:

1. All figures for the year ended or as at 31 March 2024 unless stated otherwise.
2. Link REIT's units in issue increased.

02

Operational Update

Hong Kong Retail Overview

10

Strong operating metrics underpinned by operational excellence

Lei Yue Mun Plaza		Temple Mall		Sau Mau Ping Shopping Centre

OCCUPANCY

98.0%

20/21	96.8%
21/22	97.7%
22/23	98.0%
23/24	98.0%

REVERSION

7.9%

7.1% 7.9%

4.8%

-1.8%

62.4

UNIT RENT PSF

HK$64.4

64.4

63.8

62.7

Notes:

20/21

21/22

22/23

23/24

Mar-21

Mar-22

Mar-23

Mar-24

1. Reversion rate was calculated based on base rent (excluding management fees).
2. All figures for the year ended or as at 31 March 2024 unless stated otherwise.