not vested
Link on high after bumper payout by Victor Cheung
Rents from Link REIT (0823) malls are expected to rise further, chief executive George Hongchoy Kwok- lung said, as the unit trust climbed to fresh highs on record payouts.
Interim distribution for the six months to September was 71.08 HK cents,
up 13 percent from a year earlier, as distribution income grew 14 percent to HK$1.62 billion, the Link said.
Total revenue, derived mostly from rents at 180-odd public housing shopping centers,
rose 10.7 percent to HK$3.2 billion.
Link units rose 2.2 percent to HK$39.60 yesterday after the results were revealed, and so far this year have climbed 38 percent.
Shop rentals rose 12.7 percent in the half-year period, eclipsing the 11.6 percent gain in retail sales. Hongchoy said imminent rent hikes will take into account the tenants ability to pay.
In addition to rental hikes, the Link will seek to increase revenue by improving trade and tenant mixes. It will also optimize the use of space, Hongchoy said.
The average rent at Link properties climbed to
HK$37.20 per square foot per month as of September, up 8.7 percent from a year back.
The average rent is sharply higher than rents at certain private housing estate malls, such as those being operated by Fortune REIT (0778).
Average reversion, which represents the rental rate hike when a three-year contract is renewed, jumped to about 26 percent, compared with 21.7 percent in the first half of last year.
The Link has not bought any large properties after buying two private malls last year. Hongchoy said the REIT is continuously looking for potential acquisitions, but will "leave it to destiny" as to when the next deal will be clinched.
The Link has started renovating four shopping malls, in addition to the six already being built, Hongchoy said. Its total expenditure for the projects is HK$1.37 billion.
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It's all about "how much you made when you were right" & "how little you lost when you were wrong"