Link up to shareholder benefits
The Link REIT (0823) is one stock I have always felt comfortable holding.
Now that London-based TCI is steadily shedding its stake from 18.47 percent to 9.89 percent, it's a good time to buy the stock.
( So why's TCI selling ? )
Commonwealth Bank of Australia has done just that and now holds 5.02 percent of the shopping- mall and car park operator.
The Link manages 180 retail and car park facilities. Total revenue for the year ended 31 March hit HK$4.5 billion, up 7 percent year on year. Income from retail facilities rose 8 percent to HK$3.26 billion.
The Link REIT has installed carpark automation systems, improved hygiene standards in the malls. and provided a greater range of choices to shoppers.
The firm has successfully maximized the value of its properties and the higher overall rental income will definitely benefit its unit holders.
Yesterday's protest by The Link's 3,000-odd tenants against rent hikes is unlikely to hurt the stock.
In fact, higher rents bode well for the firm, which I believe has to strike the right balance between serving the community and its shareholders.
I had recommended the stock when it hit HK$12.96 in December.
It is still not too late to accumulate at the current level of HK$17.50, in order to benefit from a 5 percent dividend yield that offers a steady capital gain.
http://www.thestandard.com.hk/news_deta ... 91113&fc=8