Core Viewpoint - The report from CMB International indicates that Link REIT's interim results for the fiscal year 2026 show a decline in revenue and net property income, primarily due to retail market fluctuations and negative rental adjustments in Hong Kong and mainland China [1] Financial Performance - Revenue decreased by 1.8% year-on-year to HKD 7.023 billion [1] - Net property income fell by 3.4% year-on-year to HKD 5.178 billion [1] - Total distributable amount was HKD 3.283 billion, with a distribution per unit of HKD 1.2688, representing a year-on-year decline of 5.9% [1] Market Challenges - Link REIT continues to face challenges such as rising labor costs and uncertainty in the retail market recovery [1] - The rental adjustment rates for renewals in Hong Kong and mainland China were negative, impacting overall performance [1] Analyst Adjustments - The target price for Link REIT has been revised down from HKD 49.8 to HKD 45.7, while maintaining a "Buy" rating [1] - The expected distribution per unit (DPU) has been lowered due to ongoing challenges [1] Investment Outlook - Despite short-term price corrections, the dividend yield is approximately 7%, presenting a long-term accumulation opportunity [1] - Anticipation of further interest rate cuts and potential inclusion in the Hong Kong Stock Connect may lead to a mid-to-long-term valuation reassessment [1]
大行评级丨交银国际：下调领展目标价至45.7港元 仍维持“买入”评级