Tuesday, June 13, 2023

Added: Link REIT


Added 3,000 shares of Link Reit on 9 Jun at HKD47.40

Reason for buying:

1) Near to 5 years low (Even lower than during Covid)

Link Reit is the largest REIT in Asia by market capitalisation

Image from Proposed Merger of MCT and MNACT (Apr 2022)

I believe one of the main reason for this giant to trade at such low price now is mainly due to Rights Issue in Feb 2023 at 29.6% discount to last trading price (Link). This resulted in lower dividend % due to enlarged share numbers. Nevertheless, the Rights Issue is 240% subscribed (Link).

2) Dividend 5.69%

This time round, there is a scrip option for dividend where we can get discounted shares :)

3) PB 0.64

We are looking at 14% upside for PB if it can hit the average 0.88

4) Hong Kong Retail +7.1% rental reversion

Hong Kong Retail is 52.4% of Link Reit portfolio. As long as the rental reversion is positive, Link Reit should be good.

5) Hong Kong Car Parks Income

For some reason, I am very attracted to Link Reit Car Parks related business income (18.8% of Link Reit portfolio) given that they are able to increase their income in all their car parks segment. 

6) Capitaland Investment (SGX: 9CI) alternative

Related post:

1) Added: Fortune REIT (HK 778) - Power of Neighbourhood malls

2) SOLD: Fortune REIT (HK778)

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