Interest ExpensesLower HIBOR should translate into interest savings for the REIT as over 30% of its total debt is on a floating rate basis, helping to partly offset lower rental earnings.
Population GrowthPopulation growth led by government policies bodes well for non-discretionary retail growth in Hong Kong, supporting long-term reversionary growth for the REIT.
Stock Market SentimentPositive developments regarding the inclusion of the REIT into Stock Connect should boost sentiment towards Link REIT sharply given its large market capitalisation, strong trading liquidity, and resilient earnings.