SEHK:823

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, we are the first Real Estate Investment Trust listed in Hong Kong.


Snowflake Analysis

Established dividend payer and fair value.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

823

-1.1%

HK REITs

1.1%

HK Market


1 Year Return

-30.0%

823

-31.7%

HK REITs

-21.6%

HK Market

Return vs Industry: 823 exceeded the Hong Kong REITs industry which returned -30.7% over the past year.

Return vs Market: 823 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

823IndustryMarket
7 Day-2.1%-1.1%1.1%
30 Day-10.0%-12.9%-10.2%
90 Day-21.1%-22.1%-16.1%
1 Year-27.7%-30.0%-28.8%-31.7%-18.8%-21.6%
3 Year28.5%15.8%12.1%-2.5%-3.1%-12.8%
5 Year58.5%31.5%38.3%8.1%-13.5%-27.3%

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

Valuation

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

15.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 823 (HK$65.85) is trading below our estimate of fair value (HK$76.34)

Significantly Below Fair Value: 823 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 823 is good value based on its PE Ratio (7.8x) compared to the REITs industry average (11.3x).

PE vs Market: 823 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (9.1x).


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 (0.7x) compared to the HK REITs industry average (0.4x).


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 14 analysts?

-6.0%

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 (-6.7% per year).

Earnings vs Market: 823's earnings are forecast to decline over the next 3 years (-6.7% per year).

High Growth Earnings: 823's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 823's revenue (6.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 823's revenue (6.1% 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 (-47.9%).


Return on Equity

High ROE: 823's Return on Equity (9.4%) is considered low.


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?

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 823's dividend (4.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 823's dividend (4.3%) 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: 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

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

2.3yrs

Average management tenure


CEO

George Hongchoy (57yo)

9.92s

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 ($USD10.10M) is above average for companies of similar size in the Hong Kong market ($USD867.47K).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kwok Lung Hongchoy
CEO & Executive Director of Link Asset Management Limited9.92yrsHK$78.27m0.0057% HK$7.8m
Kok Siong Ng
CFO & Executive Director of Link Asset Management Limited0.17yrno datano data
Hon Wong
Director of Project & Operationsno datano datano data
Suk Han Chan
Chief Investment Officer of Asia - Link Asset Management Limited6.92yrsno datano data
Hubert Chak
Director of Financeno datano datano data
Tai Wong
Chief Legal Officer & Company Secretary of Link Asset Management Limited0.67yrno datano data
Kuen Kuen Chan
Director of Corporate Affairs & Marketing of Link Asset Management Limited1.25yrsno datano data
Yuen Fan Ng
Director of Human Resources of Link Asset Management Limited4.08yrsno datano data
Siu Kei Yau
Chief Strategy Officer of Link Asset Management Limited2.25yrsno datano data
Patty Wu
Head of Internal Audit & Risk Managementno datano datano data

2.3yrs

Average Tenure

49yo

Average Age

Experienced Management: 823's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwok Lung Hongchoy
CEO & Executive Director of Link Asset Management Limited9.92yrsHK$78.27m0.0057% HK$7.8m
Kok Siong Ng
CFO & Executive Director of Link Asset Management Limited0.17yrno datano data
Blair Pickerell
Independent Non-Executive Director of Link Asset Management Limited4yrsHK$1.48m0.00041% HK$555.6k
Ian Keith Griffiths
Non-Executive Director of Link Asset Management Limited12.58yrsHK$1.41m0.0035% HK$4.8m
Pak Wing Tse
Independent Non-Executive Director of Link Asset Management Limited5.75yrsHK$1.72m0.0012% HK$1.6m
Nicholas Charles Allen
Chairman of the Board of Link Asset Management Limited4yrsHK$4.64m0.0043% HK$5.8m
Siew Boi Tan
Independent Non-Executive Director of Link Asset Management Limited7.17yrsHK$1.78m0.0053% HK$7.2m
Elaine Young
Independent Non-Executive Director of Link Asset Management Limited7.17yrsHK$1.54m0.00077% HK$1.0m
Sau Ling Tse
Independent Non-Executive Director of Link Asset Management Limited5.75yrsHK$1.55m0.0010% HK$1.4m
Poh Lee Tan
Independent Non-Executive Director of Link Asset Management Limited4.42yrsHK$1.53m0.0012% HK$1.6m

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 823's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 823 insiders have only sold shares 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 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$135.513b
  • Shares outstanding: 2.06b
  • 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
L5RBRSE (Berne Stock Exchange)YesUnitsCHCHFNov 2005
823 NBMV (Bolsa Mexicana de Valores)YesUnitsMXMXNNov 2005

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 13:22
End of Day Share Price2020/04/02 00:00
Earnings2019/09/30
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.