company background image
823

Link Real Estate Investment TrustSEHK:823 Stock Report

Market Cap

HK$139.0b

7D

-6.0%

1Y

-0.7%

Updated

01 Dec, 2021

Data

Company Financials +
823 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends4/6

823 Stock 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

Summary of all time highs, changes and price drops for Link Real Estate Investment Trust
Historical stock prices
Current Share PriceHK$66.50
52 Week HighHK$78.70
52 Week LowHK$63.10
Beta0.68
1 Month Change-3.13%
3 Month Change-7.32%
1 Year Change-0.75%
3 Year Change-13.64%
5 Year Change23.72%
Change since IPO463.56%

Recent News & Updates

Shareholder Returns

823HK REITsHK Market
7D-6.0%-4.7%-3.3%
1Y-0.7%-2.4%-6.4%

Return vs Industry: 823 matched the Hong Kong REITs industry which returned -1.7% over the past year.

Return vs Market: 823 exceeded the Hong Kong Market which returned -7.2% over the past year.

Price Volatility

Is 823's price volatile compared to industry and market?
823 volatility
823 Average Weekly Movement2.6%
REITs Industry Average Movement3.1%
Market Average Movement6.8%
10% most volatile stocks in HK Market13.4%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 823 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 823's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20051,200George Hongchoyhttps://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

How do Link Real Estate Investment Trust's earnings and revenue compare to its market cap?
823 fundamental statistics
Market CapHK$139.03b
Earnings (TTM)HK$11.57b
Revenue (TTM)HK$11.56b

12.0x

P/E Ratio

12.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
823 income statement (TTM)
RevenueHK$11.56b
Cost of RevenueHK$2.50b
Gross ProfitHK$9.06b
Expenses-HK$2.50b
EarningsHK$11.57b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.53
Gross Margin78.39%
Net Profit Margin100.03%
Debt/Equity Ratio28.5%

How did 823 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Link Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 823 (HK$66.5) is trading below our estimate of fair value (HK$371.9)

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 (12x) compared to the Hong Kong REITs industry average (9.8x).

PE vs Market: 823 is poor value based on its PE Ratio (12x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 823 is poor value based on its PEG Ratio (17.5x)


Price to Book Ratio

PB vs Industry: 823 is overvalued based on its PB Ratio (0.9x) compared to the HK REITs industry average (0.6x).


Future Growth

How is Link Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 823's forecast earnings growth (0.7% per year) is below the savings rate (1.5%).

Earnings vs Market: 823's earnings (0.7% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 823's earnings are forecast to grow, but not significantly.

Revenue vs Market: 823's revenue (4.9% per year) is forecast to grow slower than the Hong Kong market (12.4% 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?

-37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 823 has a large one-off gain of HK$5.0B impacting its September 30 2021 financial results.

Growing Profit Margin: 823 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 823's earnings have declined by 37% 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 (1.4%).


Return on Equity

High ROE: 823's Return on Equity (7%) 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$3.7B) do not cover its short term liabilities (HK$5.8B).

Long Term Liabilities: 823's short term assets (HK$3.7B) do not cover its long term liabilities (HK$49.0B).


Debt to Equity History and Analysis

Debt Level: 823's net debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: 823's debt to equity ratio has increased from 25.1% to 28.5% over the past 5 years.

Debt Coverage: 823's debt is not well covered by operating cash flow (15%).

Interest Coverage: 823's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Dividend

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

4.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 823's dividend (4.63%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 823's dividend (4.63%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


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 (56.7%), 823's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 823's dividends in 3 years are not forecast to be well covered by earnings (100.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

George Hongchoy (59 yo)

11.5yrs

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 ($USD9.64M) is above average for companies of similar size in the Hong Kong market ($USD1.30M).

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 (4.8 years average tenure).


Board Members

Experienced Board: 823's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 823 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$139.027b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 15:43
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.