Link Real Estate Investment Trust (823) Q3 2026 earnings summary

Executive summary

• Portfolio value as of September 2025 was HKD 223 billion, down 1.3% from six months prior, with core retail and car park assets making up over 90% of the total.

• Hong Kong and Chinese mainland represent 88% of portfolio value; international assets in Singapore and Australia remain robust with near-full occupancy.

• Focus remains on non-discretionary retail, proactive asset management, cost optimisation, and capital recycling of non-core assets.

• Management is committed to returning excess capital to shareholders and maintaining strong portfolio discipline.

• Navigated high geopolitical and economic uncertainty, with inflationary pressures from rising oil prices and divergent growth outlooks across regions.

Financial highlights

• Portfolio value stood at HKD 223 billion as of 30 Sep 2025, with 90.4% in retail, car parks, and related businesses.

• Hong Kong rental reversions were -7.5% for the nine-month period and are expected to remain in the high negative single-digit range for the full year.

• Retail occupancy rates: Hong Kong 97.0%, Chinese Mainland 95.3%, Singapore 98.8%, Australia 98.4%.

• Tenant sales in core categories (F&B, supermarkets) have shown gradual improvement year-over-year, but overall Hong Kong sales declined -1.5% for 9M25/26.

• Singapore and Australia assets are near full occupancy with positive double-digit rental reversions.

Outlook and guidance

• Rental reversions in Hong Kong expected to remain negative at similar levels as FY 2025/2026 due to ongoing business cycle effects.

• Northern China retail rental reversions to remain negative but improving; Southern China showing positive reversions.

• Interest expense for the second half of 2026 may increase slightly but is expected to remain close to the previously announced 3.2% due to a high proportion of fixed-rate debt.

• No plans for significant expansion into new geographies or categories; focus remains on Asian retail and car parks.

• Expect valuation adjustments to reflect negative rental reversions.