Link Real Estate Investment Trust
Market Cap
HK$178.9b
Last Updated
2020/01/18 12:42 UTC
Data Sources
Company Financials +
Executive Summary
Link Real Estate Investment Trust ("Link REIT", Hong Kong stock code: 823), is Managed by Link Asset Management Limited, we are the first Real Estate Investment Trust listed in Hong Kong.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -6.5% per year for the next 3 years
Snowflake Analysis
Established dividend payer and overvalued.
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
Stable Share Price: 823 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.6%
823
3.6%
HK REITs
1.5%
HK Market
1 Year Return
8.7%
823
3.1%
HK REITs
5.9%
HK Market
Return vs Industry: 823 exceeded the Hong Kong REITs industry which returned 0.3% over the past year.
Return vs Market: 823 exceeded the Hong Kong Market which returned 5.6% over the past year.
Shareholder returns
| 823 | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | 3.6% | 1.5% |
| 30 Day | 9.3% | 6.1% | 4.2% |
| 90 Day | 3.5% | 2.9% | 8.7% |
| 1 Year | 12.2%8.7% | 7.6%3.1% | 9.8%5.9% |
| 3 Year | 84.8%66.5% | 59.7%38.8% | 27.7%14.7% |
| 5 Year | 95.5%62.1% | 77.1%38.8% | 21.4%1.2% |
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
1 month ago | Simply Wall St
Link Real Estate Investment Trust Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year2 months ago | Simply Wall St
Link Real Estate Investment Trust Interim Results Just Came Out: Here's What Analysts Are Forecasting For Next YearValuation
Is Link Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
10.2x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 823 (HK$83.5) is trading above our estimate of fair value (HK$75.64)
Significantly Below Fair Value: 823 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 823 is poor value based on its PE Ratio (9.9x) compared to the REITs industry average (9.9x).
PE vs Market: 823 is good value based on its PE Ratio (9.9x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: 823's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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).
Next Steps
Future Growth
How is Link Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
-6.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 823's earnings are forecast to decline over the next 3 years (-6.5% per year).
Earnings vs Market: 823's earnings are forecast to decline over the next 3 years (-6.5% per year).
High Growth Earnings: 823's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 823's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).
High Growth Revenue: 823's revenue (6.5% 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 (3.5%).
Next Steps
Past Performance
How has Link Real Estate Investment Trust performed over the past 5 years?
7.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 823 has a large one-off gain of HK$12.0B impacting its September 30 2019 financial results.
Growing Profit Margin: 823's current net profit margins are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: 823's earnings have grown by 7.5% per year over the past 5 years.
Accelerating Growth: 823's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 823 had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the REITs industry average (-44.3%).
Return on Equity
High ROE: 823's Return on Equity (9.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Link Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: 823 has a high level of physical assets or inventory.
Debt Coverage by Assets: 823's debt is not covered by short term assets (assets are 0.2x debt).
Financial Institutions Analysis
Asset Level: 823's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if 823 has a sufficient allowance for bad loans.
Low Risk Liabilities: 823 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 823 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 823 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 823 has an appropriate level of bad loans.
Next Steps
Dividend
What is Link Real Estate Investment Trust's current dividend yield, its reliability and sustainability?
3.28%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 823's dividend (3.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).
High Dividend: 823's dividend (3.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).
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: At its current payout ratio (89%), 823's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 823's dividends in 3 years are forecast to be thoroughly covered by earnings (0.05% payout ratio).
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?
2.0yrs
Average management tenure
CEO
George Hongchoy (57yo)
9.7yrs
Tenure
HK$78,265,000
Compensation
Mr. Kwok Lung Hongchoy, also known as George, has been the Chief Executive Officer of Link Asset Management Limited, Manager of Link Real Estate Investment Trust since May 2010. Mr. Hongchoy served as the ...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD10.07M) is above average for companies of similar size in the Hong Kong market ($USD1.00M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.0yrs
Average Tenure
49yo
Average Age
Experienced Management: 823's management team is considered experienced (2 years average tenure).
Board Age and Tenure
5.5yrs
Average Tenure
63yo
Average Age
Experienced Board: 823's board of directors are considered experienced (5.5 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 87,500 |
| Max Price | HK$80.00 |
| Entity | Company |
| Shares | 27,000 |
| Max Price | HK$80.00 |
| Entity | Company |
| Shares | 8,500 |
| Max Price | HK$80.00 |
| Entity | Company |
| Shares | 222,700 |
| Max Price | HK$81.11 |
| Entity | Company |
| Shares | 63,000 |
| Max Price | HK$86.85 |
| Entity | Company |
| Shares | 1,000 |
| Max Price | HK$86.85 |
| Entity | Company |
| Shares | 2,217,500 |
| Max Price | HK$82.32 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director of Link Asset Management Limited |
| Shares | 500,000 |
| Max Price | HK$85.66 |
| Entity | Company |
| Shares | 99,000 |
| Max Price | HK$86.00 |
| Entity | Company |
| Shares | 1,365,000 |
| Max Price | HK$86.43 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director of Link Asset Management Limited |
| Shares | 30,000 |
| Max Price | HK$86.23 |
| Entity | Company |
| Shares | 416,935 |
| Max Price | HK$88.48 |
| Entity | Company |
| Shares | 2,554,000 |
| Max Price | HK$91.01 |
| Entity | Company |
| Shares | 334,000 |
| Max Price | HK$90.55 |
| Entity | Company |
| Shares | 14,609,579 |
| Max Price | HK$92.08 |
| Entity | Company |
| Shares | 1,445,000 |
| Max Price | HK$92.61 |
| Entity | Company |
| Shares | 1,027,625 |
| Max Price | HK$86.89 |
| Entity | Company |
| Shares | 277,500 |
| Max Price | HK$88.15 |
| Entity | Company |
| Shares | 2,685,500 |
| Max Price | HK$87.08 |
| Entity | Company |
| Shares | 2,784,349 |
| Max Price | HK$79.32 |
| Entity | Company |
| Shares | 18,514,450 |
| Max Price | HK$87.66 |
| Entity | Company |
| Shares | 36,375,785 |
| Max Price | HK$87.66 |
| Entity | Company |
| Shares | 336,500 |
| Max Price | HK$86.53 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Hubert Chak (58yo)
Director of Finance
George Hongchoy (57yo)
CEO & Executive Director of Link Asset Management Limited
- Tenure: 9.7yrs
- Compensation: HK$78.27m
Kok Siong Ng (48yo)
Chief Financial Officer of Link Asset Management Limited
- Tenure: 1.7yrs
Eric Yau (45yo)
Chief Strategy Officer of Link Asset Management Limited
- Tenure: 2yrs
Christine Chan (44yo)
Director of Investment for Link Asset Management Limited
- Tenure: 6.7yrs
Phyllis Ng (55yo)
Director of Human Resources of Link Asset Management Limited
- Tenure: 3.8yrs
Kenneth Wong (49yo)
Group General Counsel & Company Secretary of Link Asset Management Limited
- Tenure: 0.4yrs
Max Wong (54yo)
Director of Project & Operations
Lorraine Chan (49yo)
Director of Corporate Affairs & Marketing of Link Asset Management Limited
- Tenure: 1yrs
Patty Wu
Head of Internal Audit & Risk Management
Board Members
Blair Pickerell (63yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 3.8yrs
- Compensation: HK$1.48m
Ian Keith Griffiths (65yo)
Non-Executive Director of Link Asset Management Limited
- Tenure: 12.3yrs
- Compensation: HK$1.41m
George Hongchoy (57yo)
CEO & Executive Director of Link Asset Management Limited
- Tenure: 9.7yrs
- Compensation: HK$78.27m
Peter Tse (68yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 5.5yrs
- Compensation: HK$1.72m
Nick Allen (64yo)
Chairman of the Board of Link Asset Management Limited
- Tenure: 3.8yrs
- Compensation: HK$4.64m
May Tan (63yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 6.9yrs
- Compensation: HK$1.78m
Ed Chan (56yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 3.9yrs
- Compensation: HK$1.43m
Elaine Young (54yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 6.9yrs
- Compensation: HK$1.54m
Nancy Tse (66yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 5.5yrs
- Compensation: HK$1.55m
Poh Lee Tan (60yo)
Independent Non-Executive Director of Link Asset Management Limited
- Tenure: 4.2yrs
- 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: 823
- Exchange: SEHK
- Founded: 2005
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: HK$178.856b
- Shares outstanding: 2.07b
- Website: https://www.linkreit.com
Number of Employees
Location
- Link Real Estate Investment Trust
- Tower 1
- 20th Floor
- Kwun Tong
- Kowloon
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 823 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Units | HK | HKD | Nov 2005 |
| L5R | DB (Deutsche Boerse AG) | Yes | Units | DE | EUR | Nov 2005 |
| LKRE.F | OTCPK (Pink Sheets LLC) | Yes | Units | US | USD | Nov 2005 |
| 2964 | SEHK (The Stock Exchange of Hong Kong Ltd.) | NPV (PARALLEL 22/01/2020) | HK | HKD | Jan 2020 |
Biography
Link Real Estate Investment Trust ("Link REIT", Hong Kong stock code: 823), is Managed by Link Asset Management Limited, we are the first Real Estate Investment Trust listed in Hong Kong. With a portfolio comprising retail facilities, car parks and offices across Hong Kong, Beijing, Shanghai, Guangzhou, and Shenzhen, we serve local communities by fashioning dynamic urban destinations that enhance our tenants' businesses, engage shoppers and visitors with delightful experiences, and promote a shared sense of community. We invest and manage sustainable, income-producing retail and commercial properties (excluding hotels and serviced apartments) in Hong Kong and tier-one cities in mainland China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/18 12:42 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.