Analyst Liu Jieqi of UOB Kay Hian maintained a Buy rating on Link Real Estate Investment (LKREF – Research Report), with a price target of HK$41.49.
Liu Jieqi’s rating is based on a combination of factors that highlight both challenges and potential for Link Real Estate Investment. Despite a slight dip in tenant sales in Hong Kong, the decline has shown improvement from previous periods, indicating a positive trend in sales performance across major categories. This suggests a potential recovery in the retail sector, which is a significant part of Link REIT’s portfolio.
Liu Jieqi also notes that while rental reversion has softened to negative low single digits, this aligns with the management’s previous guidance, indicating a level of predictability and stability. The occupancy rate remains high, and the company’s strategic positioning across key markets like Hong Kong, Beijing, and London supports its long-term growth prospects. These factors collectively justify the Buy rating, as they suggest that Link REIT is well-positioned to navigate current challenges and capitalize on future opportunities.
According to TipRanks, Jieqi is ranked #6034 out of 9406 analysts.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$41.65 price target.