HK Stock Market Move | Link (00823) plunges more than 6% in the afternoon, with a 5.6% decrease in total distribution. Negative rental adjustment rates for renewals in both Hong Kong and mainland China.

Link REIT plunges more than 6% in the afternoon, falling 6.22% to HK$38.88 by the time of writing, with a turnover of HK$776 million. On the news front, Link REIT announced its interim results for the period ending in September this year, with a total distribution down 5.6% year-on-year to HK$3.283 billion, and a distribution per unit down 5.9% year-on-year to 126.88 cents. During the period, income decreased by 1.8% year-on-year to HK$7.023 billion, and net property income decreased by 3.4% to HK$5.178 billion, mainly due to negative rental adjustment rates in Hong Kong and the mainland, reflecting pressure on the macro environment and retail industry. Link REIT also stated that they have not yet entered into a binding agreement for the acquisition of Australian shopping mall equity. Earlier, Morgan Stanley released a research report stating that there were rumors that Link REIT planned to spend AUD 1.5 billion to acquire half stakes in three shopping centers, including Sunshine Plaza in Queensland, Macarthur Square in New South Wales, and Lakeside Joondalup in Western Australia. Morgan Stanley predicts that the total return on investment for the transaction may reach around 5.4%, higher than the effective borrowing rate of 3.6% for the 2025 fiscal year and the cash rate of 3.6% for the Reserve Bank of Australia, forecasting that the acquisition will increase the company's debt ratio by approximately 4.6 percentage points.