[ET Net News Agency, 20 December 2019] Citi Research is positive on Link REIT's (00823)
first expansion on an investment property out of HK/China, which is expected to slightly
yield accretive.
The research house expects near-term driver will be on its potential resumption of
36.3mn share buybacks (being the unutilized buyback target for FY2020) before 31 March
2020, which should provide good share price support in the near term.
Citi said the proposed acquired asset in Sydney represents 1.6% of Link's proforma
portfolio mix as at September 2019. Its current net passing income amounts to AUD26.7mn.
Such net passing rent represents a yield of 3.7% based on the acquisition price plus
expenses, which is reasonable. (KL)