DB:L5R

Stock Analysis Report

Link Real Estate Investment Trust

Executive Summary

Link Real Estate Investment Trust ("Link REIT", Hong Kong stock code: 823), is managed by Link Asset Management Limited.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.

Share Price & News

How has Link Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

DB:L5R

2.2%

DE REITs

-0.05%

DE Market


1 Year Return

21.2%

DB:L5R

20.6%

DE REITs

-4.6%

DE Market

L5R matched the REITs industry (20.6%) over the past year.

L5R outperformed the Market in Germany which returned -4.6% over the past year.


Share holder returns

L5RIndustryMarket
7 Day-0.9%2.2%-0.05%
30 Day-4.8%2.2%5.1%
90 Day-7.4%5.6%0.6%
1 Year25.3%21.2%24.9%20.6%-1.6%-4.6%
3 Year74.7%56.6%23.2%5.7%18.0%7.9%
5 Year177.4%129.2%49.3%16.4%31.4%13.4%

Price Volatility Vs. Market

How volatile is Link Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Link Real Estate Investment Trust undervalued based on future cash flows and its price relative to the stock market?

9.2x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Link Real Estate Investment Trust's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Link Real Estate Investment Trust's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Link Real Estate Investment Trust is overvalued based on earnings compared to the DE REITs industry average.

Link Real Estate Investment Trust is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Link Real Estate Investment Trust earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Link Real Estate Investment Trust is good value based on assets compared to the DE REITs industry average.


Next Steps

Future Growth

How is Link Real Estate Investment Trust expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

-35.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Link Real Estate Investment Trust's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

Link Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Link Real Estate Investment Trust's revenue growth is expected to exceed the Germany market average.

Link Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Link Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Link Real Estate Investment Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Link Real Estate Investment Trust performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Link Real Estate Investment Trust's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Link Real Estate Investment Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Link Real Estate Investment Trust's 1-year earnings growth is negative, it can't be compared to the DE REITs industry average.


Return on Equity

Link Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Link Real Estate Investment Trust used its assets more efficiently than the DE REITs industry average last year based on Return on Assets.


Return on Capital Employed

Link Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Link Real Estate Investment Trust's financial position?


Financial Position Analysis

Link Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Link Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Link Real Estate Investment Trust's level of debt (14.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (13.1% vs 14.8% today).

Debt is well covered by operating cash flow (21.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Link Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

3.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Link Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.39%).

Link Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Germany (3.86%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (2173.9x coverage).


Next Steps

Management

What is the CEO of Link Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

George Hongchoy (57yo)

9.3yrs

Tenure

HK$78,265,000

Compensation

Mr. Kwok Lung Hongchoy, also known as George, has been the Chief Executive Officer of Link Asset Management Limited, Manager of Link Real Estate Investment Trust since May 2010. Mr. Hongchoy served as the  ...


CEO Compensation Analysis

George's remuneration is higher than average for companies of similar size in Germany.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Link Real Estate Investment Trust management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.9yrs

Average Tenure

63yo

Average Age

The tenure for the Link Real Estate Investment Trust board of directors is about average.


Insider Trading

Link Real Estate Investment Trust individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellHK$13,717,82105 Sep 19
Capital Research and Management Company
EntityCompany
Shares1,365,000
Max PriceHK$10.05
SellHK$300,78402 Sep 19
Elaine Young
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Link Asset Management Limited
Shares30,000
Max PriceHK$10.03
SellHK$4,236,95723 Aug 19
State Street Global Advisors, Inc.
EntityCompany
Shares416,935
Max PriceHK$10.16
BuyHK$26,481,82809 Aug 19
BlackRock, Inc.
EntityCompany
Shares2,554,000
Max PriceHK$10.37
SellHK$3,440,90326 Apr 19
BlackRock, Inc.
EntityCompany
Shares334,000
Max PriceHK$10.30
SellHK$152,746,80109 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares14,609,579
Max PriceHK$10.46
BuyHK$15,238,96708 Apr 19
State Street Global Advisors, Inc.
EntityCompany
Shares1,445,000
Max PriceHK$10.55
SellHK$10,046,40029 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares1,027,625
Max PriceHK$9.78
BuyHK$2,755,47528 Mar 19
BlackRock, Inc.
EntityCompany
Shares277,500
Max PriceHK$9.93
SellHK$26,246,42321 Mar 19
BlackRock, Inc.
EntityCompany
Shares2,685,500
Max PriceHK$9.77
BuyHK$25,051,32719 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares2,784,349
Max PriceHK$9.00
BuyHK$183,881,71515 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares18,514,450
Max PriceHK$9.93
BuyHK$361,276,82513 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares36,375,785
Max PriceHK$9.93
BuyHK$3,278,34715 Feb 19
BlackRock, Inc.
EntityCompany
Shares336,500
Max PriceHK$9.74
SellHK$4,147,97925 Oct 18
BlackRock, Inc.
EntityCompany
Shares507,500
Max PriceHK$8.17
BuyHK$12,151,53724 Oct 18
BlackRock, Inc.
EntityCompany
Shares1,513,500
Max PriceHK$8.03
BuyHK$12,569,71823 Oct 18
Capital Research and Management Company
EntityCompany
Shares1,554,000
Max PriceHK$8.09

Ownership Breakdown


Management Team

  • Hubert Chak (58yo)

    Director of Finance

    • Tenure: 0yrs
  • Simon Tu (58yo)

    Head of Property Management

    • Tenure: 1.3yrs
  • George Hongchoy (57yo)

    CEO & Executive Director of Link Asset Management Limited

    • Tenure: 9.3yrs
    • Compensation: HK$78.27m
  • Kok Siong Ng (48yo)

    Chief Financial Officer of Link Asset Management Limited

    • Tenure: 1.3yrs
  • Andy Cheung (53yo)

    COO & Executive Director of Link Asset Management Limited

    • Tenure: 9.3yrs
    • Compensation: HK$23.49m
  • Eric Yau (45yo)

    Chief Strategy Officer of Link Asset Management Limited

    • Tenure: 1.7yrs
  • Christine Chan (44yo)

    Director of Investment for Link Asset Management Limited

    • Tenure: 6.3yrs
  • Phyllis Ng (55yo)

    Director of Human Resources of Link Asset Management Limited

    • Tenure: 3.5yrs
  • Kenneth Wong (49yo)

    Group General Counsel & Company Secretary of Link Asset Management Limited

    • Tenure: 0.08yrs
  • Lorraine Chan (50yo)

    Director of Corporate Affairs & Marketing of Link Asset Management Limited

    • Tenure: 0.7yrs

Board Members

  • Blair Pickerell (63yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 3.4yrs
    • Compensation: HK$1.48m
  • Ian Keith Griffiths (65yo)

    Non-Executive Director of Link Asset Management Limited

    • Tenure: 12yrs
    • Compensation: HK$1.41m
  • George Hongchoy (57yo)

    CEO & Executive Director of Link Asset Management Limited

    • Tenure: 9.3yrs
    • Compensation: HK$78.27m
  • Peter Tse (68yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 5.2yrs
    • Compensation: HK$1.72m
  • Nick Allen (64yo)

    Chairman of the Board of Link Asset Management Limited

    • Tenure: 3.4yrs
    • Compensation: HK$4.64m
  • Andy Cheung (53yo)

    COO & Executive Director of Link Asset Management Limited

    • Tenure: 9.3yrs
    • Compensation: HK$23.49m
  • May Tan (63yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 6.6yrs
    • Compensation: HK$1.78m
  • Elaine Young (54yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 6.6yrs
    • Compensation: HK$1.54m
  • Nancy Tse (66yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 5.2yrs
    • Compensation: HK$1.55m
  • Poh Lee Tan (60yo)

    Independent Non-Executive Director of Link Asset Management Limited

    • Tenure: 3.8yrs
    • Compensation: HK$1.53m

Company Information

Link Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Link Real Estate Investment Trust
  • Ticker: L5R
  • Exchange: DB
  • Founded: 2005
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: HK$184.641b
  • Listing Market Cap: HK$21.333b
  • Shares outstanding: 2.10b
  • Website: https://www.linkreit.com

Number of Employees


Location

  • Link Real Estate Investment Trust
  • Tower 1
  • 20th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
823SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDNov 2005
L5RDB (Deutsche Boerse AG)YesUnitsDEEURNov 2005
LKRE.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDNov 2005

Biography

Link Real Estate Investment Trust ("Link REIT", Hong Kong stock code: 823), is managed by Link Asset Management Limited. Link REIT is the first real estate investment trust listed in Hong Kong, and current ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 20:53
End of Day Share Price2019/09/19 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.