Link Reit takes first steps for asset sales
The landlord of shopping malls and car parks is running the rule over its portfolio so that management can respond to any good offers, chief says
The Link Real Estate Investment Trust is paving the way to sell some of its assets by evaluating its portfolio, including shopping centres and car parks in public housing estates.
"We have started reviewing the properties in the portfolio to identify how they have performed. We didn't do this in the past because the properties we hold continue to have potential and synergy to grow, and there was no need to sell them," George Hongchoy, the chief executive of the reit's manager, The Link Management, said yesterday.
"We're not saying that we have the need now, and it doesn't mean we are going to sell something tomorrow. But [we felt we] should take this action. If someone offers us a price which is higher than the value we expect, we should sell," he said, adding that owners should evaluate their properties regularly.
Hongchoy was speaking at a press conference on the trust's annual results announced yesterday. The reit reported a 10.3 per cent jump in net property income to nearly HK$4.62 billion for the year to March. Revenue increased 9.7 per cent to HK$6.5 billion.
Distribution per unit for the fiscal year rose 13.1 per cent to 146.46 HK cents. Average monthly rent per square foot rose 7.3 per cent to HK$38.40.
The company has a relatively low gearing ratio of 13.6 per cent.
"Wherever we think we can still add value through the way we manage properties, we wouldn't even think about it (selling properties)," Link chairman Nicholas Sallnow-Smith said.
