OTCPK:LKRE.F

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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, Link REIT is the first Real Estate Investment Trust listed in Hong Kong and now the largest in Asia in terms of market capitalisation.

Rewards

Earnings are forecast to grow 84.94% per year

Pays a high and reliable dividend of 4.47%

Risk Analysis

No risks detected for LKRE.F from our risk checks.


Snowflake Analysis

Established dividend payer with moderate growth potential.

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: LKRE.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.1%

LKRE.F

4.6%

US REITs

2.9%

US Market


1 Year Return

-33.4%

LKRE.F

-7.2%

US REITs

8.9%

US Market

Return vs Industry: LKRE.F underperformed the US REITs industry which returned -8.6% over the past year.

Return vs Market: LKRE.F underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

LKRE.FIndustryMarket
7 Day14.1%4.6%2.9%
30 Day-5.0%11.3%10.6%
90 Day-10.2%-9.8%5.1%
1 Year-33.4%-33.4%-3.3%-7.2%11.4%8.9%
3 Year3.2%3.2%16.7%2.3%34.3%25.4%
5 Year39.9%39.9%47.8%17.6%60.7%42.7%

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

No news available

Valuation

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

0.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LKRE.F ($8.25) is trading above our estimate of fair value ($6.06)

Significantly Below Fair Value: LKRE.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LKRE.F is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: LKRE.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: LKRE.F is unprofitable, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LKRE.F is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.4x).


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 15 analysts?

81.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKRE.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: LKRE.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LKRE.F's is expected to become profitable in the next 3 years.

Revenue vs Market: LKRE.F's revenue (3.8% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: LKRE.F's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LKRE.F's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

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

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKRE.F is currently unprofitable.

Growing Profit Margin: LKRE.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LKRE.F is unprofitable, and losses have increased over the past 5 years at a rate of -5.2% per year.

Accelerating Growth: Unable to compare LKRE.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LKRE.F is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).


Return on Equity

High ROE: LKRE.F has a negative Return on Equity (-10.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Link Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: LKRE.F's short term assets (HK$9.8B) exceed its short term liabilities (HK$4.9B).

Long Term Liabilities: LKRE.F's short term assets (HK$9.8B) do not cover its long term liabilities (HK$42.6B).


Debt to Equity History and Analysis

Debt Level: LKRE.F's debt to equity ratio (21.7%) is considered satisfactory.

Reducing Debt: LKRE.F's debt to equity ratio has increased from 16.7% to 21.7% over the past 5 years.

Debt Coverage: LKRE.F's debt is not well covered by operating cash flow (19%).

Interest Coverage: LKRE.F is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LKRE.F's dividend (4.47%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: LKRE.F's dividend (4.47%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

Stable Dividend: LKRE.F's dividends per share have been stable in the past 10 years.

Growing Dividend: LKRE.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (90%), LKRE.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LKRE.F'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?

3.3yrs

Average management tenure


CEO

George Hongchoy (57yo)

10.08yrs

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 ($USD10.10M) is about average for companies of similar size in the US market ($USD11.58M).

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 Limited10.08yrsHK$78.27m0.0057% HK$992.2k
Kok Siong Ng
CFO & Executive Director of Link Asset Management Limited0.33yrno datano data
Hon Wong
Director of Project & Operationsno datano datano data
Suk Han Chan
Chief Investment Officer of Asia - Link Asset Management Limited7.08yrsno datano data
Hubert Chak
Director of Financeno datano datano data
Tai Wong
Chief Legal Officer & Company Secretary of Link Asset Management Limited0.83yrno datano data
Yuen Fan Ng
Director of Human Resources of Link Asset Management Limited4.25yrsno datano data
Siu Kei Yau
Chief Strategy Officer of Link Asset Management Limited2.42yrsno datano data
Patty Wu
Head of Internal Audit & Risk Managementno datano datano data
Kam-Luk Chow
General Manager of Strategic Planning for Link Management Limitedno datano datano data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: LKRE.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwok Lung Hongchoy
CEO & Executive Director of Link Asset Management Limited10.08yrsHK$78.27m0.0057% HK$992.2k
Kok Siong Ng
CFO & Executive Director of Link Asset Management Limited0.33yrno datano data
Blair Chilton Pickerell
Independent Non-Executive Director of Link Asset Management Limited4.17yrsHK$1.48m0.00041% HK$70.9k
Ian Keith Griffiths
Non-Executive Director of Link Asset Management Limited12.75yrsHK$1.41m0.0035% HK$606.7k
Pak Wing Tse
Independent Non-Executive Director of Link Asset Management Limited5.92yrsHK$1.72m0.0012% HK$209.2k
Nicholas Charles Allen
Independent Chairman of the Board of Link Asset Management Limited4.17yrsHK$4.64m0.0043% HK$745.0k
Siew Boi Tan
Independent Non-Executive Director of Link Asset Management Limited7.33yrsHK$1.78m0.0053% HK$912.7k
Elaine Carole Young
Independent Non-Executive Director of Link Asset Management Limited7.33yrsHK$1.54m0.00047% HK$81.2k
Sau Ling Tse
Independent Non-Executive Director of Link Asset Management Limited5.92yrsHK$1.55m0.0010% HK$174.6k
Poh Lee Tan
Independent Non-Executive Director of Link Asset Management Limited4.58yrsHK$1.53m0.0012% HK$207.4k

5.9yrs

Average Tenure

63yo

Average Age

Experienced Board: LKRE.F's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LKRE.F 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: LKRE.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: HK$133.969b
  • Listing Market Cap: HK$17.286b
  • 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
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, Link REIT is the first Real Estate Investment Trust listed in Hong Kong and now the largest in Asia in terms of market capitalisation. Leveraging on strong asset and capital management, and asset enhancement capabilities, we manage a diversified portfolio comprising retail facilities, car parks and offices. We are an industry leader in terms of capital management, with low funding cost to facilitate active portfolio management through acquisition, divestment and development. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 03:15
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.