Link REIT (0823.HK): 1HFY27 results inline - DPU likely to remain subdued in FY27-28. Upside hinge on further non-core asset divestment and allocation for share repurchases

Link REIT reported its 1HFY27 results at noon on Nov 12th followed by an analyst briefing. Headline net profit of HK$796mn included a -HK$2.4bn property revaluation loss mostly attributed to its HK rental portfolio and a HK$135mn gain on the disposal of Swing By @ Thomson Plaza in Singapore. Excluding these, underlying net profit fell 9% yoy to HK$3bn, dragged by non-cash fair value loss of its financial instruments. Distributable income was broadly stable at -0.6% yoy to HK$3.3bn. Revenue from the HK portfolio fell 2.7% yoy, with retail rental decline narrowing to -3.8% and negative rental reversion improving to -7.5%, while tenant sales improved to -0.2% yoy. Mainland China revenue rose 2.9% yoy on higher retail occupancy of 97.5%, though negative rental reversion remained at -8.7%. Overseas revenue softened to -0.3% yoy, with continued positive reversion in Singapore and Australia at +8% and +18%. Overall NPI decline narrowed to -0.8% yoy to HK$5.1bn, implying +0.6pts margin improve