According to the research report from China International Capital Corporation, Link REIT (00823.HK) performance in the fiscal year 2024 is in line with market expectations, with its property operations in Hong Kong maintained steadily. Retail property income increased by 2.2% annually, and the rental occupancy rate remained at 98% as of the end of March. The overall average rent renewal rate for the entire year increased by 0.8 percentage points annually to 7.9%. The bank pointed out that the value of Link REIT's investment property portfolio fell by 0.6% annually to HKD 236 billion due to expansion of capitalization rate and depreciation of forex, and the values of different investment properties showed varying degrees of decline, except for parking lots in Hong Kong and logistics properties on the mainland.

China International Capital Corporation suggests paying attention to Hong Kong's retail consumption trend. Although sales growth of the company's retail merchants in Hong Kong outperformed the market in fiscal year 2024, sales growth slowed down annually in the second half of 2024. In addition, with the trend of mainland consumers traveling to Hong Kong for shopping, supermarkets are expected to face long-term challenges due to the impact of mainland businesses. It is recommended to pay attention to the impact of changes in consumer trends on performance.

China International Capital Corporation lowered the forecasted distribution per fund unit for fiscal year 2025 from 4% to HKD 2.57 and expects it to remain flat in fiscal year 2026. It also reduced the company's target price by 15% to HKD 40 to reflect adjustments in business projections and a more cautious outlook for medium to long-term performance, while maintaining a "outperform the market" rating.