According to a report by CICC, Link REIT (00823.HK) is expected to increase its revenue and net property income for the 2024 fiscal year by 11% and 9.5% respectively to HKD 13.58 billion and HKD 10.07 billion, which meets market expectations. However, the dividends per share and net asset value per share are expected to decline year-on-year by 4.3% and 5.4% respectively to HKD 2.63 and HKD 70.02.

Although the sales growth of the company's Hong Kong retail tenants was higher than the overall market trend in the 2024 fiscal year, the sales growth rate in the second half of the fiscal year has slowed down due to an increase in Hong Kong residents' consumption on the mainland. Looking ahead, the bank believes that supermarkets and other formats that are more affected by the mainland may face longer-term challenges, and it is recommended to pay attention to the impact of changes in consumer trends on performance.

Considering the weak performance of Hong Kong's retail properties, the bank has lowered the forecast for Link REIT's dividends per share for the 2025 fiscal year by 4% to HKD 2.57, and introduced a forecast of HKD 2.57 for the 2026 fiscal year. The bank maintains a "outperform" rating but has lowered the target price by 15% to HKD 40, mainly reflecting adjustments to profit forecasts and a more cautious judgment on medium to long-term profit capabilities.