HK Stock Market Move | LINK REIT (00823) fell more than 4%, the mid-term distribution per unit exceeded expectations, and short-term performance may be constrained by the results of the US election.

LINK REIT (00823) falls more than 4%, down 4.34% to 36.4 Hong Kong dollars as of press time, with a turnover of 4.71 billion Hong Kong dollars. On the news front, LINK REIT announced yesterday its interim performance as of the end of September, with a total distribution amount increasing by 4.3% year-on-year to 3.476 billion Hong Kong dollars. The distribution per unit increased by 3.7% year-on-year to 134.89 Hong Kong cents. During the period, net income and property revenue increased by 6.4% and 5.8% year-on-year to 7.153 billion Hong Kong dollars and 5.359 billion Hong Kong dollars, respectively. This was mainly attributed to the comprehensive inclusion of the Shanghai Qipao LinkSquare asset following the additional 50% equity acquisition in February, as well as improvements in the performance of most operating markets. Bank of America Securities pointed out that Link's interim distribution per unit exceeded expectations. The bank agrees that Link's underlying factors are resilient, but the outcome of the US presidential election may negatively impact Link's short-term performance, as the bank expects the trading range of the 10-year US Treasury yield to increase from the current 3.5% to 4.25% to 4.25% to 4.75%. Meanwhile, UBS believes that although uncertainties may arise with a potential second term of President Trump, they believe that the rate-cutting environment is favorable for the execution of Link's 3.0 strategy.