[ET Net News Agency, 28 July 2020] Goldman Sachs lowered its target price for Link REIT
(00823) to HK$84 from HK$88 and maintained its "buy" rating.
The research house estimated Link's acquisition of "The Cabot" (grade A office building
located in Canary Wharf) in London for GBP380mn is 1% accretive to DPU (distribution per
unit), but Goldman has also factored in further tenant relief program and weaker reversion
outlook, leading to 2-4% cuts in FY2021-23 EPS forecasts.
Goldman sees Link as likely to outperform its peers in terms of operations despite a
lack of momentum in tenant sales and rental reversion amid the prevailing weak sentiment
and further uncertainties from COVID-19. (KL)