[ET Net News Agency, 20 December 2019] HSBC Global Research sees a limited financial
impact from Link REIT's (00823) proposed acquisition of Grade-A office tower in Sydney for
AUD683m as its pro forma gearing should increase by only 1.4ppt to 13.5% post-acquisition.
While its initial NPI yield is relatively unattractive at 3.91% (based on the net
passing income of AUD26.7m), the research house believes its tenant lease characteristics
- a long WALE (weighted average lease expiry) of 8.45 years and a pre-set annual rental
escalation of 4% - should provide steady income growth for Link.
HSBC believes this acquisition reflects management's active search for portfolio
diversification to drive DPU growth. It maintained its "buy" rating on Link REIT, with a
target price of HK$96.3. (KL)
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00823 LINK REIT
Nominal 
31.100 +0.050 (+0.161%) Research Report
20/12/2019 10:26
{I-bank focus}Link REIT's Sydney deal provides steady income
| Remark: | Real time quote last updated: 18/04/2024 14:06 |
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