| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
823 Overview
Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world and Asia’s largest REIT in terms of market capitalisation.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | HK$65.25 |
| 52 Week High | HK$58.80 |
| 52 Week Low | HK$78.70 |
| Beta | 0.66 |
| 1 Month Change | -9.31% |
| 3 Month Change | -16.35% |
| 1 Year Change | 3.65% |
| 3 Year Change | -15.32% |
| 5 Year Change | 14.47% |
| Change since IPO | 452.97% |
Recent News & Updates
Shareholder Returns
| 823 | HK REITs | HK Market | |
|---|---|---|---|
| 7D | -2.1% | -1.5% | -2.4% |
| 1Y | 3.7% | 6.3% | 9.1% |
Return vs Industry: 823 underperformed the Hong Kong REITs industry which returned 8.1% over the past year.
Return vs Market: 823 underperformed the Hong Kong Market which returned 10.1% over the past year.
Price Volatility
| 823 volatility | |
|---|---|
| 823 Beta | 0.66 |
| Industry Beta | 0.67 |
| Market Beta | 1 |
Stable Share Price: 823 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: 823's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2005 | 1,200 | George Hongchoy | https://www.linkreit.com |
Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world and Asia’s largest REIT in terms of market capitalisation. Listed in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. From its home in Hong Kong, Link manages a diversified portfolio including retail facilities, car parks and offices spanning Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London and Sydney.
Link Real Estate Investment Trust Fundamentals Summary
| 823 fundamental statistics | |
|---|---|
| Market Cap | HK$136.43b |
| Earnings (TTM) | HK$1.19b |
| Revenue (TTM) | HK$10.74b |
115.1x
P/E Ratio12.7x
P/S RatioIs 823 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 823 income statement (TTM) | |
|---|---|
| Revenue | HK$10.74b |
| Cost of Revenue | HK$2.35b |
| Gross Profit | HK$8.40b |
| Expenses | HK$7.21b |
| Earnings | HK$1.19b |
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.57 |
| Gross Margin | 78.15% |
| Net Profit Margin | 11.03% |
| Debt/Equity Ratio | 26.8% |
How did 823 perform over the long term?
See historical performance and comparisonDividends
4.4%
Current Dividend Yield56%
Payout RatioValuation
Is Link Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
33.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 823 (HK$65.25) is trading below our estimate of fair value (HK$98.55)
Significantly Below Fair Value: 823 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 823 is poor value based on its PE Ratio (115.1x) compared to the Hong Kong REITs industry average (10.8x).
PE vs Market: 823 is poor value based on its PE Ratio (115.1x) compared to the Hong Kong market (9.8x).
Price to Earnings Growth Ratio
PEG Ratio: 823 is poor value based on its PEG Ratio (5.1x)
Price to Book Ratio
PB vs Industry: 823 is overvalued based on its PB Ratio (0.9x) compared to the HK REITs industry average (0.5x).
Future Growth
How is Link Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 823's forecast earnings growth (22.4% per year) is above the savings rate (1.5%).
Earnings vs Market: 823's earnings (22.4% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 823's revenue (4.9% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).
High Growth Revenue: 823's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 823's Return on Equity is forecast to be low in 3 years time (4.2%).
Past Performance
How has Link Real Estate Investment Trust performed over the past 5 years?
-34.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 823 has a large one-off loss of HK$5.3B impacting its March 31 2021 financial results.
Growing Profit Margin: 823 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: 823's earnings have declined by 34% per year over the past 5 years.
Accelerating Growth: 823 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: 823 has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (-3.1%).
Return on Equity
High ROE: 823's Return on Equity (0.5%) is considered low.
Financial Health
How is Link Real Estate Investment Trust's financial position?
Financial Position Analysis
Short Term Liabilities: 823's short term assets (HK$6.4B) do not cover its short term liabilities (HK$7.0B).
Long Term Liabilities: 823's short term assets (HK$6.4B) do not cover its long term liabilities (HK$44.2B).
Debt to Equity History and Analysis
Debt Level: 823's debt to equity ratio (26.8%) is considered satisfactory.
Reducing Debt: 823's debt to equity ratio has increased from 23.4% to 26.8% over the past 5 years.
Debt Coverage: 823's debt is not well covered by operating cash flow (16.6%).
Interest Coverage: 823's interest payments on its debt are well covered by EBIT (9x coverage).
Balance Sheet
Dividend
What is Link Real Estate Investment Trust current dividend yield, its reliability and sustainability?
4.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 823's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 823's dividend (4.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).
Stability and Growth of Payments
Stable Dividend: 823's dividends per share have been stable in the past 10 years.
Growing Dividend: 823's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56%), 823's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 823's dividends in 3 years are forecast to be covered by earnings (95.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
George Hongchoy (59 yo)
11.33yrs
Tenure
HK$75,161,000
Compensation
Mr. Kwok Lung Hongchoy, also known as George, has been the Chief Executive Officer of Link Asset Management Limited, Manager of Link Real Estate Investment Trust since May 2010. Mr. Hongchoy served as the...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD9.66M) is above average for companies of similar size in the Hong Kong market ($USD1.02M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 823's management team is considered experienced (4.6 years average tenure).
Board Members
Experienced Board: 823's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Link Real Estate Investment Trust's employee growth, exchange listings and data sources
Key Information
- Name: Link Real Estate Investment Trust
- Ticker: 823
- Exchange: SEHK
- Founded: 2005
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: HK$136.426b
- Shares outstanding: 2.09b
- Website: https://www.linkreit.com
Number of Employees
Location
- Link Real Estate Investment Trust
- Tower 1
- 20th Floor
- Kwun Tong
- Kowloon
- Hong Kong
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/24 15:35 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.