| Michael Wu, CAIA |
Link REIT’s fiscal 2021 result was resilient and in line with expectations. We maintain our fair value estimate of HKD 78 per unit and our fiscal 2022 distribution forecast of HKD 3.15 implies a dividend yield of 4.04%. Occupancy level was solid while the decline in rental for the retail portfolio narrowed in the second half as the COVID-19 situation in Hong Kong improved. Full-year revenue of HKD 10.7 billion was slightly ahead of our HKD 10.2 billion forecast. With operating and administrative expenses also slightly higher than anticipated, overall distribution was largely in line. Second-half distribution of HKD 1.4834 per unit represents an increase of 1.8% on the same period last year and takes full-year distribution to HKD 2.8999 per share. This compares with our forecast of HKD 2.87 per unit. In line with previous year, this includes an HKD 0.14 per unit discretionary distribution. The trust maintains 100% payout and the above discretionary distribution until the next financial year. Distribution reinvestment scheme is open for the final distribution. We have made minor adjustments to Happy Valley mall occupancy and the asset enhancement project returns after the results briefing.