Bank of America Securities: Raises target price of LINK REIT (00823) to HK $46, the visibility of recovery improves.

Bank of America Securities released a research report stating that the performance of LINK REIT (00823) for the fiscal year ending in March 2026 met expectations, reiterating a "buy" rating and raising the target price from HK$44 to HK$46, reflecting an upward revision of the forecast for distribution per fund unit in the medium term. Encouragingly, both immediate retail rents and tenant sales in Link's Hong Kong portfolio have stabilized, supporting a resumption of rental growth starting in the fiscal year 2028. The report pointed out that in addition to using funds from the recent sale of Singapore malls for a HK$1.5 billion buyback, management also revealed an active pipeline for asset sales, with non-core assets accounting for 5% to 10% of the portfolio, which could support further buybacks. Management's confidence in maintaining stable net income and distribution per fund unit for the fiscal year 2027 is better than market expectations.