Link Real Estate Investment Trust

SEHK:823

Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

823

SEHK

HK$200B

Market Cap

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Last updated 2019/05/19 12:48

Company description

Link Real Estate Investment Trust ("Link REIT", Hong Kong stock code: 823), is managed by Link Asset Management Limited. The last earnings update was 171 days ago. More info.

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823 Share Price and Events

7 Day Returns

1.7%

SEHK:823

1.6%

HK REITs

-2.5%

HK Market

1 Year Returns

40.8%

SEHK:823

28.1%

HK REITs

-15.9%

HK Market

823 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Link Real Estate Investment Trust (823)	1.7%	4.2%	8.8%	40.8%	101.6%	129.4%
HK REITs	1.6%	3.2%	7.6%	28.1%	70.2%	84.9%
HK Market	-2.5%	-8.6%	-2.1%	-15.9%	25.4%	7.8%

1 Year Return vs Industry and Market

823 outperformed the REITs industry which returned 28.1% over the past year.
823 outperformed the Market in Hong Kong which returned -15.9% over the past year.

Price Volatility

823

Industry

5yr Volatility vs Market

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823 Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Link Real Estate Investment Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Link Real Estate Investment Trust.

SEHK:823 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations	Average of 15 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	7.3%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:823
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6.7%
REITs Unlevered Beta	Simply Wall St/ S&P Global	0.52
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.523 (1 + (1- 25%) (12.89%))	0.714
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.8
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.8 * 6.65%)	7.32%

Discounted Cash Flow Calculation for SEHK:823 using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Link Real Estate Investment Trust is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Link Real Estate Investment Trust is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

SEHK:823 DCF 1st Stage: Next 10 year cash flow forecast
	Adjusted Funds From Operations (AFFO) (HKD, Millions)	Source	Present Value Discounted (@ 7.32%)
2019	7,830.00	Analyst x1	7,295.73
2020	4,810.00	Analyst x1	4,175.99
2021	5,656.00	Analyst x1	4,575.42
2022	4,984.24	Est @ -11.88%	3,756.89
2023	4,599.81	Est @ -7.71%	3,230.55
2024	4,379.11	Est @ -4.8%	2,865.69
2025	4,258.34	Est @ -2.76%	2,596.51
2026	4,201.72	Est @ -1.33%	2,387.18
2027	4,187.86	Est @ -0.33%	2,216.96
2028	4,203.36	Est @ 0.37%	2,073.33
Present value of next 10 years cash flows			HK$35,174.24

SEHK:823 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = HK$4,203.36 × (1 + 2%) ÷ (7.32% – 2%)	HK$80,593.12
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = HK$80,593.12 ÷ (1 + 7.32%)¹⁰	HK$39,753.00

SEHK:823 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = HK$35,174.24 + HK$39,753.00	HK$74,927.24
Equity Value per Share (HKD)	= Total value / Shares Outstanding = HK$74,927.24 / 2,109.32	HK$35.52

SEHK:823 Discount to Share Price
	Calculation	Result
Value per share (HKD)	From above.	HK$35.52
Current discount	Discount to share price of HK$94.85 = -1 x (HK$94.85 - HK$35.52) / HK$35.52	-167%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of Link Real Estate Investment Trust is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Link Real Estate Investment Trust's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Link Real Estate Investment Trust's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:823 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-09-30) in HKD	HK$20.73
SEHK:823 Share Price **	SEHK (2019-05-17) in HKD	HK$94.85
Hong Kong REITs Industry PE Ratio	Median Figure of 9 Publicly-Listed REITs Companies	7.3x
Hong Kong Market PE Ratio	Median Figure of 1,476 Publicly-Listed Companies	11.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Link Real Estate Investment Trust.

SEHK:823 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:823 Share Price ÷ EPS (both in HKD) = 94.85 ÷ 20.73	4.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Link Real Estate Investment Trust is good value based on earnings compared to the HK REITs industry average.
Link Real Estate Investment Trust is good value based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Link Real Estate Investment Trust's expected growth come at a high price?

Raw Data

SEHK:823 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	4.58x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts	-19.9%per year
Hong Kong REITs Industry PEG Ratio	Median Figure of 7 Publicly-Listed REITs Companies	-0.08x
Hong Kong Market PEG Ratio	Median Figure of 463 Publicly-Listed Companies	0.79x

*Line of best fit is calculated by linear regression .

SEHK:823 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 4.58x ÷ -19.9%	-0.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

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

What value do investors place on Link Real Estate Investment Trust's assets?

Raw Data

SEHK:823 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-09-30) in HKD	HK$85.41
SEHK:823 Share Price *	SEHK (2019-05-17) in HKD	HK$94.85
Hong Kong REITs Industry PB Ratio	Median Figure of 9 Publicly-Listed REITs Companies	0.62x
Hong Kong Market PB Ratio	Median Figure of 2,155 Publicly-Listed Companies	0.97x

SEHK:823 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:823 Share Price ÷ Book Value per Share (both in HKD) = 94.85 ÷ 85.41	1.11x

* Primary Listing of Link Real Estate Investment Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

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

Value checks

We assess Link Real Estate Investment Trust's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

823 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

-19.9%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Link Real Estate Investment Trust expected to grow at an attractive rate?

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 2%.

Growth vs Market Checks

Link Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
Link Real Estate Investment Trust's revenue growth is positive but not above the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:823 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:823 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts	-19.9%
SEHK:823 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts	8.1%
Hong Kong REITs Industry Earnings Growth Rate	Market Cap Weighted Average	-22.5%
Hong Kong REITs Industry Revenue Growth Rate	Market Cap Weighted Average	6.7%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.4%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:823 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (7 months ago)	See Below
Future Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below

All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:823 Future Estimates Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-03-31	11,957	7,981	6,655	12
2020-03-31	11,039	7,050	6,054	15
2019-03-31	10,170	7,024	6,418	14

SEHK:823 Past Financials Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *
2018-09-30	10,004	5,919	44,855
2018-06-30	10,014	6,202	46,308
2018-03-31	10,023	6,485	47,761
2017-12-31	9,810	6,405	35,826
2017-09-30	9,596	6,325	23,890
2017-06-30	9,426	6,201	20,801
2017-03-31	9,255	6,077	17,711
2016-12-31	9,209	6,035	15,975
2016-09-30	9,163	5,993	14,239
2016-06-30	8,952	5,838	15,267
2016-03-31	8,740	5,682	16,295
2015-12-31	8,409	5,416	17,251

*GAAP earnings excluding extraordinary items.

High Growth Checks

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 is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:823 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (7 months ago)	See Below
Future Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below

All data from Link Real Estate Investment Trust Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:823 Future Estimates Data
Date (Data in HKD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-03-31	3.26	3.51	3.02	7.00
2020-03-31	2.94	3.13	2.73	8.00
2019-03-31	3.19	4.18	2.69	3.00

SEHK:823 Past Financials Data
Date (Data in HKD Millions)	EPS *
2018-09-30	20.73
2018-06-30	21.22
2018-03-31	21.71
2017-12-31	16.22
2017-09-30	10.78
2017-06-30	9.35
2017-03-31	7.93
2016-12-31	7.13
2016-09-30	6.34
2016-06-30	6.76
2016-03-31	7.19
2015-12-31	7.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

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

Future performance checks

We assess Link Real Estate Investment Trust's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Link Real Estate Investment Trust has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

823 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Link Real Estate Investment Trust's growth in the last year to its industry (REITs).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Link Real Estate Investment Trust's year on year earnings growth rate has been positive over the past 5 years.
Link Real Estate Investment Trust's 1-year earnings growth exceeds its 5-year average (87.8% vs 15.2%)
Link Real Estate Investment Trust's earnings growth has exceeded the HK REITs industry average in the past year (87.8% vs -29.9%).

Earnings and Revenue History

Link Real Estate Investment Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Link Real Estate Investment Trust Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:823 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions)	Revenue	Net Income *	G+A Expenses
2018-09-30	10,004.00	44,855.00	532.00
2018-06-30	10,013.50	46,308.00	548.50
2018-03-31	10,023.00	47,761.00	565.00
2017-12-31	9,809.50	35,825.50	532.50
2017-09-30	9,596.00	23,890.00	500.00
2017-06-30	9,425.50	20,800.50	484.00
2017-03-31	9,255.00	17,711.00	468.00
2016-12-31	9,209.00	15,975.00	476.00
2016-09-30	9,163.00	14,239.00	484.00
2016-06-30	8,951.50	15,267.00	486.00
2016-03-31	8,740.00	16,295.00	488.00
2015-12-31	8,409.00	17,251.00	459.00
2015-09-30	8,078.00	18,207.00	430.00
2015-06-30	7,900.50	22,718.50	487.50
2015-03-31	7,723.00	27,230.00	545.00
2014-12-31	7,607.50	27,246.00	527.00
2014-09-30	7,492.00	27,262.00	509.00
2014-06-30	7,323.50	22,283.50	421.00
2014-03-31	7,155.00	17,305.00	333.00
2013-12-31	6,978.50	18,513.00	335.00
2013-09-30	6,802.00	19,721.00	337.00
2013-06-30	6,654.00	20,391.50	334.50
2013-03-31	6,506.00	21,062.00	332.00
2012-12-31	6,374.00	17,194.00	328.00
2012-09-30	6,242.00	13,326.00	324.00
2012-06-30	6,087.00	11,464.00	344.00

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Link Real Estate Investment Trust has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
Link Real Estate Investment Trust used its assets more efficiently than the HK REITs industry average last year based on Return on Assets.
Link Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the REITs industry

Past performance checks

We assess Link Real Estate Investment Trust's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Link Real Estate Investment Trust has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

823 Health

How is Link Real Estate Investment Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Link Real Estate Investment Trust's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

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.

Balance sheet

This treemap shows a more detailed breakdown of Link Real Estate Investment Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.2x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Link Real Estate Investment Trust Company Filings, last reported 7 months ago.

SEHK:823 Past Debt and Equity Data
Date (Data in HKD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-09-30	180,961.00	25,783.00	1,206.00
2018-06-30	180,961.00	25,783.00	1,206.00
2018-03-31	179,068.00	29,059.00	3,165.00
2017-12-31	179,068.00	29,059.00	3,165.00
2017-09-30	147,897.00	36,474.00	519.00
2017-06-30	147,897.00	36,474.00	519.00
2017-03-31	138,497.00	30,614.00	535.00
2016-12-31	138,497.00	30,614.00	535.00
2016-09-30	130,029.00	32,725.00	412.00
2016-06-30	130,029.00	32,725.00	412.00
2016-03-31	127,441.00	29,825.00	337.00
2015-12-31	127,441.00	29,825.00	337.00
2015-09-30	122,196.00	29,232.00	494.00
2015-06-30	122,196.00	29,232.00	494.00
2015-03-31	118,106.00	19,535.00	2,233.00
2014-12-31	118,106.00	19,535.00	2,233.00
2014-09-30	110,610.00	14,438.00	1,967.00
2014-06-30	110,610.00	14,438.00	1,967.00
2014-03-31	96,351.00	12,626.00	560.00
2013-12-31	96,351.00	12,626.00	560.00
2013-09-30	87,912.00	12,186.00	126.00
2013-06-30	87,912.00	12,186.00	126.00
2013-03-31	81,642.00	13,734.00	1,657.00
2012-12-31	81,642.00	13,734.00	1,657.00
2012-09-30	70,394.00	13,322.00	118.00
2012-06-30	70,394.00	13,322.00	118.00

Link Real Estate Investment Trust's level of debt (14.2%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has increased over the past 5 years (13.9% vs 14.2% today).
Debt is well covered by operating cash flow (23%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 16.2x coverage).

Financial health checks

We assess Link Real Estate Investment Trust's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

823 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

2.75%

Current annual income from Link Real Estate Investment Trust dividends. Estimated to be 3.27% next year.

If you bought HK$2,000 of Link Real Estate Investment Trust shares you are expected to receive HK$55 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Link Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
Link Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:823 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below
Hong Kong REITs Industry Average Dividend Yield	Market Cap Weighted Average of 9 Stocks	3.7%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 968 Stocks	3.6%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.2%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2.1%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:823 Future Dividends Estimate Data
Date (Data in HK$)	Dividend per Share (annual)	Avg. No. Analysts
2021-03-31	3.27	13.00
2020-03-31	2.97	17.00
2019-03-31	2.72	15.00

SEHK:823 Past Annualized Dividends Data
Date (Data in HK$)	Dividend per share (annual)	Avg. Yield (%)
2018-11-29	2.612	3.048
2018-11-14	2.612	3.530
2018-06-21	2.566	3.444
2018-06-06	2.566	3.569
2017-11-27	2.430	3.531
2017-11-08	2.430	3.536
2017-06-26	2.333	3.694
2017-06-07	2.333	3.755
2016-11-28	2.235	4.136
2016-11-09	2.235	4.243
2016-06-24	2.144	3.843
2016-06-08	2.144	4.261
2015-11-26	1.980	4.335
2015-11-11	1.980	4.188
2015-06-19	1.866	4.210
2015-06-10	1.866	4.013
2014-11-26	1.791	3.689
2014-11-12	1.791	3.699
2014-06-26	1.710	3.840
2014-06-04	1.710	4.122
2013-11-27	1.604	4.307
2013-11-13	1.604	4.117
2013-06-25	1.508	4.020
2012-11-26	1.422	3.433
2012-06-06	1.328	3.801
2011-11-28	1.262	4.345
2011-06-21	1.152	4.276
2010-11-25	1.057	4.296
2010-11-10	1.057	4.319
2010-06-25	0.980	4.434
2010-06-02	0.980	4.973
2009-11-27	0.967	5.057
2009-11-19	0.967	5.142
2009-07-03	0.863	4.975
2009-06-17	0.863	5.061

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

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

What portion of Link Real Estate Investment Trust's earnings are paid to the shareholders as a dividend.

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 (2127.7x coverage).

Show me more dividend paying companies in the REITs industry

Income/ dividend checks

We assess Link Real Estate Investment Trust's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Link Real Estate Investment Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

823 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?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

George Hongchoy

COMPENSATION	HK$66,476,000
AGE	56
TENURE AS CEO	9 years

CEO Bio

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 Chief Financial Officer of Link Management Limited., from January 16, 2009 to May 2010. He joined Link Management Limited in January 2009. He served as Co-Managing Director of DBS Asia Capital Limited, as well as served as its Managing Director and Head from 2004 to December 2008. He was responsible for DBS' merger & acquisitions and equity capital market businesses in North Asia. Mr. Hongchoy worked on over 50 mergers & acquisition advisory deals with a total transaction value in excess of US$45 billion. He served as the acquisition by PT Astra International and Standard Chartered Bank of PT Bank Permata in Indonesia and the sale of Kwong On Bank to DBS Bank. Recent transactions include the IPO of Win Hanverky, Beijing Jingkelong and SPG Land. He began his career with Arthur Young (now EY) in New Zealand and has since moved into senior management positions in financial consulting, investment bank and real estate investment. He was previously Managing Director of Investment Banking at JP Morgan and N.M. Rothschild & Sons. Mr. Hongchoy has been an Executive Director of Link Asset Management Ltd. since February 26, 2009. He serves as a Director of The Link Properties Limited and The Link Holdings Limited. He is a Director of The Link Finance Limited and all other subsidiaries of Link. He is a Director of the Hong Kong Securities Institute. He served as a Director of Hong Kong Cyberport Management Company Limited since June 5, 2011. He served as a Director of N.M. Rothschild & Sons (Hong Kong) Limited from 2003 to 2004. He serves as a Member of the Advisory Committee at Human Resources Development in the Financial Services Sector of the Hong Kong SAR Government. He is a Member of the Judging Panel of Hong Kong Management Association's Best Annual Report Award in 2008. He is a member of the Asia Executive Board of The Wharton School, a governor of the World Economic Forum’s Infrastructure and Urban Development Community, a global governing trustee of the Urban Land Institute and an advisor of Our Hong Kong Foundation Limited. He was a Council Member of HKICPA. He is a Senior Fellow and a member of the Corporate Advisory Council of the Hong Kong Securities and Investment Institute, a Fellow and Council Member of The Hong Kong Institute of Directors, and a Fellow member of the Hong Kong Institute of Certified Public Accountants, the Chartered Accountants Australia and New Zealand, the Royal Institution of Chartered Surveyors, and the Institute of Shopping Centre Management. He was named the Country Winner of Hong Kong/Macau Region in the EY Entrepreneur of the Year 2017 China Award, Business Person of the Year by DHL/SCMP Hong Kong Business Awards in 2015, and was also presented with the Asian Corporate Director Award by Corporate Governance Asia in 2013-2016, the Director of the Year Award (Listed Companies – Executive Directors) by The Hong Kong Institute of Directors and the Outstanding Entrepreneurship Award by Enterprise Asia in 2011. Mr. Hongchoy is a Chartered Accountant under the New Zealand Institute of Chartered Accountants and a Fellow of the Hong Kong Institute of Certified Public Accountants. He holds a Bachelor of Commerce degree from the University of Canterbury and an MBA degree from the Wharton School, University of Pennsylvania.

CEO Compensation

George's compensation has increased by more than 20% in the past year.
George's remuneration is higher than average for companies of similar size in Hong Kong.

Management Team Tenure

Average tenure and age of the Link Real Estate Investment Trust management team in years:

3.2

Average Tenure

Average Age

The tenure for the Link Real Estate Investment Trust management team is about average.

Management Team

George Hongchoy

TITLE

CEO & Executive Director of Link Asset Management Limited

COMPENSATION

HK$66M

AGE

56

TENURE

9 yrs

Andy Cheung

59

TENURE

Average tenure and age of the Link Real Estate Investment Trust board of directors in years:

5.5

Average Tenure

Average Age

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

3.5 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
26. Apr 19	Sell	BlackRock, Inc.	Company	23. Apr 19	23. Apr 19	-334,000	HK$90.55	HK$-30,244,167
09. Apr 19	Sell	JPMorgan Chase & Co, Private Banking and Investment Banking Investments	Company	04. Apr 19	04. Apr 19	-14,609,579	HK$92.08	HK$-1,345,320,196
08. Apr 19	Buy	State Street Global Advisors, Inc.	Company	02. Apr 19	02. Apr 19	1,445,000	HK$92.61	HK$133,821,452
29. Mar 19	Sell	State Street Global Advisors, Inc.	Company	15. Mar 19	15. Mar 19	-1,027,625	HK$86.89	HK$-89,290,338
28. Mar 19	Buy	BlackRock, Inc.	Company	25. Mar 19	25. Mar 19	277,500	HK$88.15	HK$24,461,569
21. Mar 19	Sell	BlackRock, Inc.	Company	19. Mar 19	19. Mar 19	-2,685,500	HK$87.08	HK$-233,862,480
19. Mar 19	Buy	State Street Global Advisors, Inc.	Company	11. Mar 19	11. Mar 19	2,784,349	HK$79.32	HK$220,854,572
15. Mar 19	Buy	JPMorgan Chase & Co, Private Banking and Investment Banking Investments	Company	08. Mar 19	08. Mar 19	18,514,450	HK$87.66	HK$1,622,961,847
13. Mar 19	Buy	JPMorgan Chase & Co, Private Banking and Investment Banking Investments	Company	08. Mar 19	08. Mar 19	36,375,785	HK$87.66	HK$3,188,672,156
15. Feb 19	Buy	BlackRock, Inc.	Company	12. Feb 19	12. Feb 19	336,500	HK$86.53	HK$29,117,076
25. Oct 18	Sell	BlackRock, Inc.	Company	22. Oct 18	22. Oct 18	-507,500	HK$73.47	HK$-37,286,433
24. Oct 18	Buy	BlackRock, Inc.	Company	19. Oct 18	19. Oct 18	1,513,500	HK$72.31	HK$109,442,550
23. Oct 18	Buy	Capital Research and Management Company	Company	19. Oct 18	19. Oct 18	1,554,000	HK$72.85	HK$113,208,895
17. Aug 18	Sell	Kwok Lung Hongchoy	Individual	15. Aug 18	15. Aug 18	-700,000	HK$76.94	HK$-53,858,839
17. Aug 18	Sell	Kwok Lung Hongchoy	Individual	14. Aug 18	14. Aug 18	-800,000	HK$76.75	HK$-61,396,318

Management checks

We assess Link Real Estate Investment Trust's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

823 News

Simply Wall St News

Is Link Real Estate Investment Trust's (HKG:823) CEO Pay Fair?

According to our data, Link Real Estate Investment Trust has a market capitalization of HK$204b, and pays its CEO total annual compensation worth HK$66m. … Thus we can conclude that George Hongchoy receives more in total compensation than the median of a group of large companies in the same market as Link Real Estate Investment Trust. … We compared total CEO remuneration at Link Real Estate Investment Trust with the amount paid at other large companies.

Simply Wall St - 3 days ago – Full article

Why I Like Link Real Estate Investment Trust (HKG:823)

Want to participate in a short research study? … I've been keeping an eye on Link Real Estate Investment Trust (HKG:823) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe 823 has a lot to offer.

Simply Wall St - 2 weeks ago – Full article

Are Insiders Selling Link Real Estate Investment Trust (HKG:823) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Link Real Estate Investment Trust (HKG:823). … View our latest analysis for Link Real Estate Investment Trust. … Link Real Estate Investment Trust Insider Transactions Over The Last Year.

Simply Wall St - 3 weeks ago – Full article

If You Like EPS Growth Then Check Out Link Real Estate Investment Trust (HKG:823) Before It's Too Late

So if you're like me, you might be more interested in profitable, growing companies, like Link Real Estate Investment Trust (HKG:823). … How Fast Is Link Real Estate Investment Trust Growing. … Link Real Estate Investment Trust maintained stable EBIT margins over the last year, all while growing revenue 4.3% to HK$10b.

Simply Wall St - 1 month ago – Full article

A Closer Look At Link Real Estate Investment Trust's (HKG:823) Impressive ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Link Real Estate Investment Trust (HKG:823). … Link Real Estate Investment Trust has a ROE of 25%, based on the last twelve months. … View our latest analysis for Link Real Estate Investment Trust?

Simply Wall St - 1 month ago – Full article

How To Look At Link Real Estate Investment Trust (HKG:823)

Link Real Estate Investment Trust is a HK$185b. … real estate investment trust (REIT) based in Kowloon City, Hong Kong. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company.

Simply Wall St - 2 months ago – Full article

Can You Imagine How Chuffed Link Real Estate Investment Trust's Shareholders Feel About Its 151% Share Price Gain?

One great example is Link Real Estate Investment Trust (HKG:823) which saw its share price drive 151% higher over five years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Link Real Estate Investment Trust achieved compound earnings per share (EPS) growth of 18% per year.

Simply Wall St - 2 months ago – Full article

A Spotlight On Link Real Estate Investment Trust's (HKG:823) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Link Real Estate Investment Trust (HKG:823), it

Simply Wall St - 4 months ago – Full article

One Metric To Rule Them All: Link Real Estate Investment Trust (HKG:823)

Link Real Estate Investment Trust is a HK$168b. … real estate investment trust (REIT) based in Kowloon City, Hong Kong. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company.

Simply Wall St - 5 months ago – Full article

Should You Worry About Link Real Estate Investment Trust's (HKG:823) CEO Pay Check?

George Hongchoy has been the CEO of Link Real Estate Investment Trust (HKG:823) since 2010. … View our latest analysis for Link Real Estate Investment Trust? … According to our data, Link Real Estate Investment Trust has a market capitalization of HK$154.0b, and pays its CEO total annual compensation worth HK$66m.

Simply Wall St - 6 months ago – Full article

823 Company Info

Description

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 currently Asia’s largest REIT and one of the world’s largest retail focused REITs in terms of market capitalisation. Spanning Hong Kong, Beijing, Shanghai and Guangzhou, its portfolio consists of properties with about 9 million sq ft of retail space, around 61,000 car park spaces, and a project under development in Hong Kong, as well as properties with about 3 million sq ft of retail and office space in Mainland China. Link REIT is a constituent of the Hang Seng Index.

Details

Name:	Link Real Estate Investment Trust
Ticker:	823
Exchange:	SEHK
Founded:	2005
Market Cap:	HK$200,069,120,941
Shares outstanding:	2,109,321,254
Website:	http://www.linkreit.com
Address:	Link Real Estate Investment Trust AXA Tower, 33rd Floor, Kowloon City, New Territories, Hong Kong

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
SEHK	823	Units	The Stock Exchange of Hong Kong Ltd.	HK	HKD	25. Nov 2005
OTCPK	LKRE.F	Units	Pink Sheets LLC	US	USD	25. Nov 2005
DB	L5R	Units	Deutsche Boerse AG	DE	EUR	25. Nov 2005

Number of employees

Current staff

976

Link Real Estate Investment Trust employees.

Industry

Industry:	Retail REITs
Sector:	Real Estate

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/05/19 12:48
End of day share price update:	2019/05/17 00:00
Last estimates confirmation:	2019/05/03
Last earnings filing:	2018/11/29
Last earnings reported:	2018/09/30
Last annual earnings reported:	2018/03/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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