Company Coverage
Link REIT (823HK): Disposal Of 50% Stake In 100 Market Street Enhances Flexibility For Buyback And Reinvestment
BUY (Maintained)
Current price:
Target price:
Upside:
HK$39.66
HK$44.30
+11.7%
Analyst
Analyst
Highlights
- Link REIT announced the disposal of its 50% stake of 100 Market Street, expecting to generate A$222m net proceeds with minimal impact on BS metrics.
- Link REIT will continue unit buyback with proceeds from Thompson Plaza disposal, and is expected to decide on allocation for capital recycled from this latest deal in 1-2 months. Commitment to stable DPU in FY27 reiterated.
- Maintain BUY with an unchanged target price of HK$44.30. The transaction enhances Link REIT’s flexibility for unit buybacks and asset reinvestment, which we view as positive.
Analysis
Disposing 50% stake of 100 Market Street at appraised valuation, implying 6.5% exit yield. Details of the deal are summarised below. Management hosted an analyst briefing on 22 July.
- Minimal impact on balance sheet (BS) metrics. After the disposal, the portfolio value will be lowered by 0.92%. As the exit valuation is in line with the property’s latest appraised valuation, the net gearing ratio is expected to remain unchanged after the disposal.
Highlights
- Link REIT announced the disposal of its 50% stake of 100 Market Street, expecting to generate A$222m net proceeds with minimal impact on BS metrics.
- Link REIT will continue unit buyback with proceeds from Thompson Plaza disposal, and is expected to decide on allocation for capital recycled from this latest deal in 1-2 months. Commitment to stable DPU in FY27 reiterated.
- Maintain BUY with an unchanged target price of HK$44.30. The transaction enhances Link REIT’s flexibility for unit buybacks and asset reinvestment, which we view as positive.
Analysis
Disposing 50% stake of 100 Market Street at appraised valuation, implying 6.5% exit yield. Details of the deal are summarised below. Management hosted an analyst briefing on 22 July.
- Minimal impact on balance sheet (BS) metrics. After the disposal, the portfolio value will be lowered by 0.92%. As the exit valuation is in line with the property’s latest appraised valuation, the net gearing ratio is expected to remain unchanged after the disposal.
BUY (Maintained)
Current price:
Target price:
Upside:
HK$39.66
HK$44.30
+11.7%
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
22 Jul 2026
China Resources Mixc Lifestyle Services (1209 HK): 1H26 Results Preview: In-Line Double-Digit Earnings Growth, Commercial-Led Margin Uplift
24 Jul 2026
Sino Biopharmaceutical (1177 HK): Innovation Continues To Fuel Growth
24 Jul 2026
Baidu Inc (9888 HK) 2Q26 Results Preview: AI Cloud Growth Offset by Advertising Weakness; Strategic Catalysts In Focus
Our latest research
24 Jul 2026
TA: Xiaomi (1810 HK) / Sino Biopharmaceutical (1177 HK)
24 Jul 2026
Sino Biopharmaceutical (1177 HK): Innovation Continues To Fuel Growth
24 Jul 2026