Highlights
(for the year ended 31 March 2010):
•
Final distribution per unit: HK 49.02 cents (highest DPU since listing)
•
Revenue: HK$4,990 million, up 10.8%
•
Net property income: HK$3,328 million, up 18.6%
•
Net asset value per unit at year-end at HK$17.46
•
Revenue growth for retail properties due to
• Higher occupancy rate
• Increased contribution from
newly completed AEIs and
• Composite reversion rate of
20.5%
|
Continuing To Deliver Consistent Earnings Growth
• Revenue: HK$4,990 million, up 10.8% (2009: HK$4,503 million)
• Net property income: HK$3,328 million, up 18.6% (2009: HK$2,805 million)
• Profit
before tax and change in fair values of investment properties: HK$2,631 million, up 19.8% (2009: HK$2,197 million)
• Total
distributable income: HK$2,134 million, up 17.3% (2009: HK$1,819 million)
• Final distribution per unit: HK 49.02 cents (Interim
distribution
per unit: HK 48.35 cents)
• Full-year distribution per unit: HK 97.37 cents, up 15.9% (2009: HK83.99 cents)
• For the
second half of the financial year, pace of growth in distribution per unit
was positive but slower compared with the first half.
• Distribution
payout ratio: 100%
Driving Growth From
Strong Performance Of Portfolio
• Overall
average monthly unit rent (exclusive of self-use office): HK$30.6 per square
foot, up 7.7% (2009: HK$28.4 per square foot)
• Overall
composite reversion rate of 20.5%, down 4.7% (2009: 25.2%)
• Overall
tenant retention rate of 71.4%#, down 1.5% (2009: 72.9%)
• Overall
occupancy rate of 90.6%, up 3.2% (2009: 87.4%)
• Revenue
contribution (excluding car parks) from completed asset enhancement projects
of 25.3%, up 9.5% (2009: 15.8%)
• Leases with
turnover rent clauses (ex ancillary): 3,206, up 60.6% (2009: 1,996)
• Car park
income per space per month: HK$1,054, up 2.4% (2009: HK$1,029)
Strong Financial Position Underpins Our Business
• Total assets at year-end at
HK$58,931 million (31 Mar 2009: HK$48,680 million)
• Net asset value at year-end:
HK$38,444 million (31 Mar 2009: HK$29,201 million)
• Net asset value per unit at year-end
at HK$17.46 (31 Mar 2009: HK$13.47)
• Gearing ratio at year-end: 18.4% (31 Mar 2009: 23.7%)
• Average duration of debt at
year-end: 3.9 years (31 Mar 2009: 2.4 years)
• Credit
ratings: A grade with stable outlook by Standard and Poor’s and A3 grade with
stable outlook by Moody’s Investors Service
|
#Figure includes tenants who were
relocated within the same property
HONG KONG, 2 June 2010 - The board of
directors ("the Board") of The Link Management Limited ("The
Link Management"), as the manager of The Link Real Estate Investment Trust
("The Link REIT"; Hong Kong stock code: 823) today announced the
audited consolidated final results of The Link REIT for the year ended 31 March
2010, and reported a Total Distributable Income ("TDI") of HK$2,134
million for the year (2009: HK$1,819 million). The Link Management's current
policy is to distribute to unitholders 100% of The Link REIT's TDI. With an
interim Distribution Per Unit ("DPU") of HK 48.35 cents and a final
DPU of HK 49.02 cents, total DPU for the year amounted to HK 97.37 cents, an
increase of 15.9% over previous year (2009: HK 83.99 cents).
Contributions from completed asset
enhancement projects remain a key driver of growth in the year under review.
Revenue contribution (excluding car parks) from completed asset enhancement
projects grew 9.5% year-on-year to 25.3%. Overall average monthly unit rent
rose 7.7% to HK$30.6 per square foot (2009: HK$28.4) while overall occupancy
rate reached 90.6%, indicating an increase of 3.2% (2009: 87.4%). Leases with
turnover rent clauses increased 60.6% to 3,206 (2009: 1,996) while the car park
income per space per month rose by 2.4% to HK$1,054 (2009: HK$1,029). Growth
has also been supported by active capital management, a strong financial
position, and successful cost management. Gearing ratio was reduced to 18.4% as
at year-end (2009: 23.7%). The Link REIT has obtained credit ratings of A grade
and A3 grade, both with stable outlook, from Standard and Poor's and Moody's
Investors Service respectively.
Mr Nicholas Sallnow-Smith, Chairman of
the Board of The Link Management, said, "Notwithstanding the rather
challenging economic climate in Hong Kong during the year under review, I am
pleased to see the strong operating results achieved. As landlord of a
portfolio of community shopping centres, we will focus to improve our
facilities and services which ultimately will serve the interests of the whole
community. Meanwhile, we will continue to invest substantial sums in asset
enhancement initiatives ("AEI"), thus creating more jobs and
contributing to the well being of the communities we serve."
Mr George Hongchoy, Chief Executive
Officer of The Link Management, said, "The good performance of The Link
REIT was driven by revenue growth and a slight decline in costs. Higher
occupancy rate, increased contribution from newly completed AEIs and a composite
reversion rate of 20.5% contributed to revenue growth for retail properties.
Over the last six months, we have strengthened risk management and corporate
governance framework, upgraded the depth of the management team, and built a
stronger corporate culture."
"On green initiatives, we have
upgraded to more energy efficient air-conditioning chiller systems at various
properties, thus achieving savings in utilities expenses. I believe that The
Link REIT upholds its corporate social responsibility best by running a
successful business that delivers sustainable income growth. Through providing
quality shopping experience at our centres, we improve the daily lives of
residents in the neighbourhood. We will step up engagement with local
communities and make The Link REIT a valuable partner in the communities we
serve," added Mr Hongchoy.
During the year under review, asset
enhancement works were completed on six centres, namely Kwai Fong, Wong Tai
Sin, Wo Che, Cheung Fat, Butterfly and Hing Wah. In the upcoming financial
year, asset enhancement works are scheduled to be completed for five
properties, including Lok Fu Plaza, The Link REIT's flagship property.
Started in 2007, the cooked food stall
rejuvenation project made good progress during the year under review with
rejuvenation works completed for five stalls, namely Wo Che, Yau Oi (three
stalls), and Shun Tin. The rejuvenated stalls have retained the flavour of the
local culture and become popular spots for residents and tourists and created
community employment. The five aforementioned stalls, for instance, have
generated more than 150 jobs for the communities concerned. Up to date, 15
cooked food stalls have been rejuvenated by The Link Management since IPO.
The Link Management supports a range
of charitable causes, cultural and artistic activities and environmental
initiatives. As landlord of retail facilities located at the doorstep of 40% of
Hong Kong's population, we care about the communities in which we operate
through undertaking a wide range of activities, ranging from supporting various
charity activities to leasing to non-profit making organisations at
concessionary rate, and supporting staff volunteer programmes.
To date, The Link REIT has achieved a
consistent track record of profit growth and maintained a conservative
financial position. The management team will continue to create value to
unitholders, shoppers and tenants and benefit the communities of Hong Kong as a
whole. The team will continue to strive towards being a highly regarded REIT
manager in providing quality retail facilities and services.
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End -
Overview