EL7.AI
StocksMedium•12 November 2026•
4 min read

Link REIT Plans Buyback of Up to HK$2 Billion in Units

Key Facts

1Link REIT intends to buy back units worth between HK$1 billion and HK$2 billion in the second half of 2026/2027, subject to surplus capital being available and an attractive valuation.
2Total distributable amount rose 0.4% to HK$3,295 million, from HK$3,283 million.
3Distribution per unit was 127.25 HK cents, up 0.3% from 126.88 cents in the corresponding period.
4Total revenue fell 1.6% to HK$6,909 million, and net property income declined 0.8% to HK$5,135 million.

Link REIT said on November 12, 2026, that it intends to buy back units worth between HK$1 billion and HK$2 billion in the second half of fiscal 2026/2027, according to its results statement for the six months ended September 30, 2026. The fund tied the plan’s execution to the availability of surplus capital and an attractive unit valuation. The results showed that total distributable amount rose 0.4% to HK$3,295 million, from HK$3,283 million in the corresponding period. Distribution per unit was 127.25 HK cents, compared with 126.88 cents in the first half of the previous fiscal year, an increase of 0.3%. The figures reflect a broadly stable distribution during a period in which total revenue and net property income declined.

The planned buyback follows a program the fund carried out in the first half, when it repurchased about 38.3 million units at an average price of about HK$38.5 per unit. Spending on those transactions totaled about HK$1.5 billion, according to the statement. The chief financial officer said the fund would continue to consider buybacks when surplus capital is available and the unit price is at an attractive valuation. The new plan sets a range of HK$1 billion to HK$2 billion for the period from October 2026 to March 2027. Its execution therefore remains subject to the capital and valuation conditions cited by the fund, rather than a stated timetable for completing the buybacks.

On operating performance, Link REIT’s total revenue fell 1.6% to HK$6,909 million, while net property income declined 0.8% to HK$5,135 million in the six months. The fund attributed the revenue decline to negative rental reversions in its Hong Kong retail portfolio, a slow recovery in non-essential goods trade and the continued shift of consumption online. In the Hong Kong portfolio, revenue fell 2.7% and net property income declined 2.9% year on year. Occupancy in the retail portfolio there was 97.0% as of September 30, 2026, while tenant sales fell 0.2% in the first half. These indicators paint a weaker picture for the Hong Kong portfolio than the overall stability in distribution per unit.

By contrast, general and administrative expenses fell 20.8% to HK$365 million, from HK$461 million in the corresponding period, following the impact of organizational restructuring measures. The all-in average cost of borrowings was 3.29% in the first half, compared with 3.22% in the corresponding period a year earlier. The average maturity of debt facilities was 3.8 years, and the net gearing ratio was 23.3% at the end of September 2026. Net asset value per unit was HK$56.99 on September 30, down 1.3% from HK$57.75 on March 31, 2026. In the fiscal year ended March 2026, annual distribution per unit had fallen 6.9% to 253.61 HK cents.

Property disposals in the first half included the sale of Swing By @ Thomson Plaza for S$250 million and the sale of a 50% stake in 100 Market Street for A$225.9 million. After the period ended, the fund agreed to sell 700 Nathan Road in Hong Kong for HK$2.3 billion, while continuing to manage the property. It also agreed to acquire a 50.1% stake in Eastpoint Mall in Singapore for S$239 million. The Anderson opened on October 13, 2026, with 83% committed occupancy at opening. Fund chief Duncan Owen said income may continue to decline gradually, particularly in Hong Kong retail, although signs of stabilization have emerged in parts of the core portfolio.

Results in other regions were mixed. In the mainland China portfolio, revenue and net property income fell 2.9% and 1.2%, respectively, when measured in yuan, but rose 2.9% and 5.0% when measured in Hong Kong dollars. In the Australian retail portfolio, rental reversions were 17.8% and occupancy reached 99.8% during the period. These regional results came alongside the decline in Hong Kong revenue, which the fund identified as a major source of income pressure. Execution of the buyback program in the second half remains subject to the availability of surplus capital and an attractive unit valuation.