The Link REIT announced an interim result with DPU increased by 19.4%yoy to $63.11cents. Revenue grew 10.1%yoy to $2,887mn. The growth of DPU outpacing revenue is due to lower total property expenses and financial expense.
Revenue growth remains steady. Retail shops rental grew 11.3%yoy, contributing 59.9% of total revenue. Gross revenue from car parks increased 11.6% supported by both short term and monthly parking. Nan Fung Plaza is on track with 98.4% occupancy rate and average monthly unit rent increased by 3.7% since acquisition completed. The Link has completed 22 projects of AEI since IPO. There are 32 projects in the pipeline with 7 projects are underway, 7 projects are pending statutory approval and 18 projects are under planning.
The value of property portfolio grew 7.1% to $72,096mn. Excluding the addition of commercial portion of Nan Fung Plaza, the value of retail properties increased by 5%. NAV per unit was $26.14, up 6.1%yoy, translated into 1.08x PBR at yesterday closing price.
No comments on buying of Laguna Plaza. The mgmt refused to comment on the news and said it would target on community retail malls which provide synergy and economic of scale.