Q3 2026 Link Real Estate Investment Trust Earnings Call

March 17, 2026

269 month operational update is it Tristan director of Investor Relations.

Christy Lam: Good afternoon, ladies and gentlemen. Welcome to Link REIT's 2025 and 2026 nine-month operational update. This is Christy Lam, Director of Investor Relations. Today we have Group CFO, Mr. Kok-Siong Ng, Group CIO, Mr. John Saunders, Group Managing Director, Asset Management, Mr. Emmanuel Farcis. On the screen, you may find today's agenda. Now, let me hand the floor over to KS.

Christy Lam: Good afternoon, ladies and gentlemen. Welcome to Link REIT's 2025 and 2026 9 month operational update. This is Christy Lam, Director of Investor Relations. Today we have Group CFO, Mr. Kok-Siong Ng, Group CIO, Mr. John Saunders, Group Managing Director, Asset Management, Mr. Emmanuel Farcis. On the screen, you may find today's agenda. Now, let me hand the floor over to KS.

Today, we have group CFO, Mr costume group.

Group C. I O Mr. John Saunders group, managing director asset management, Mr. Emmanuel biopsy on the screen you may find todays agenda now let me hand, the floor all sorts of chaos.

Thanks, Christy and good afternoon, everyone.

On the geopolitical front.

Kok-Siong Ng: Thanks, Christy, and good afternoon, everyone. On the geopolitical front, recent tensions in Iran have driven a surge in energy price, creating renewed inflationary pressures with the potential for this to feed through stagflation or recessionary scenarios. Global growth outlook remains divergent across markets, while most major central banks are currently maintaining a hold stance on interest rates. Although the trajectory of geopolitical developments remains uncertain, we are closely monitoring the situation and assessing its impact on the company. Our business, focusing predominantly on non-discretionary retail, continues to exhibit relative resilience, supported by stable underlying consumer demand as we continue to improve on our tenant mix. Our gearing level remains low, and our liabilities remain manageable.

Recent pensions in Iran have driven a surge in energy price.

If anything the new inflationary pressures.

With the potential for these two feet true stagflation or recessionary scenarios.

Global growth outlook remains divergent across markets.

Most major central banks.

Currently maintaining a whole stance on interest rates.

Although the trajectory of geopolitical developments remained uncertain.

We're closely monitoring the situation and assessing its impact on the company.

Our business focusing predominantly on non discretionary retail.

Continues to execute relative resilience.

By stable underlying consumer demand.

As we continue to improve on our tenant mix.

And our gearing level remains law and all liabilities remain manageable.

On operations occupancy has remained at healthy levels, despite a challenging retail backdrop in Hong Kong and China mainland.

Kok-Siong Ng: On operations, occupancy has remained at healthy levels despite a challenging retail backdrop in Hong Kong and mainland China, with Hong Kong rental reversions standing at -7.5 for the ninth month and expected to stay in the high negative single-digit range for the full year. In contrast, operating conditions in Singapore and Australia remain robust, with assets close to full occupancy. From a capital perspective, we completed pre-financing of around HKD 15 billion of FY2526 debt at competitive rates and remain focused on cost and efficiency to protect margins. Next FY, we have only HKD 12 billion of refinancing needs. Finally, on focus areas, we continue to work on our core assets of malls and car parks to deliver sustainable returns, advance asset recycling opportunities on non-core and mature assets, and plan to return excess capital where appropriate.

With Hong Kong rental reversion spending at negative seven 5% for the ninth month and.

And expect that sustained high negative single digit range for the full year.

In contrast, operating condition in Singapore, and Australia remain robust with close to full occupancy.

From a capital perspective.

Complete the pre financing of around Hong Kong 15 billion.

Of FY 2526 debt at <unk>.

That's the difference.

And remain focused on cost and efficiency to protect margins.

Next FY, we have only 12 billion of refinancing needs.

Finally on focus areas.

We continue to work on our core assets of malls and.

Top box to deliver sustainable returns.

Once I said recycling opportunities on non core and mature assets and plan to return excess capital where appropriate.

With that I'll hand over to John for the portfolio review.

Kok-Siong Ng: With that, I'll hand over to John for the portfolio review.

Thanks Kash.

As of September 25, the valuation of the link reach portfolio stood at 223 billion Hong Kong dollars, that's down about one 3% from six months ago core retail and car park assets continue to form the backbone of the portfolio accounting for just over 90% of the <unk>.

John Saunders: Thanks, KS. As of September 2025, the valuation of the Link REIT's portfolio stood at HKD 223 billion. That's down about 1.3% from six months ago. Core retail and car park assets continue to form the backbone of the portfolio, accounting for just over 90% of the total, with the remaining 9.6% comprising other assets. Geographically, Hong Kong and the Chinese mainland remain the key markets, representing around 88% of portfolio value, while international assets, primarily in Australia and Singapore, make up the balance. As market conditions evolve, valuation adjustments are expected to reflect negative rental reversions. Next, Emmanuel will go through our operational performance.

Total with the remaining nine 6% comprising about assets.

Geographically Hong Kong in the Chinese mainland remain the key markets, representing around 88% of portfolio values, while international assets, primarily in Australia, and Singapore make up the balance.

As market conditions evolve valuation adjustments are expected to reflect negative rental versions.

Next to the menu will go through our operational performance.

Thank you John.

Turning to our retail assets here is a snapshot of performance across the portfolio.

Emmanuel Farcis: Thank you, John. Turning to our retail assets, here is a snapshot of performance across the portfolio. Overall, while near-term conditions remain mixed, our proactive asset management efforts continue to strengthen portfolio fundamentals, enhance resilience against market volatility, and position us to benefit from recovery over time. In Hong Kong, retail conditions remain challenging, but selected trades have shown early signs of recovery. We are further embracing the e-commerce trend through piloting new pickup services and seeking to ensure the continued attractiveness of our assets through trade mix optimization, asset enhancement, and targeted leasing, particularly from Chinese mainland tenants. On the Chinese mainland front, sales momentum has improved across selected categories. Tenant remixing, refreshed layouts, and new concepts remain a key part of our leasing strategy.

Overall, while near term conditions remain mixed our proactive asset management efforts continue to strengthen portfolio fundamentals.

Hence resilience against market volatility.

Position us to benefit from recovery over time.

In Hong Kong retail conditions remain challenging.

But selected trades have shown early signs of recovery.

We are further embracing e-commerce trends.

Piloting new pickup services.

And seeking to ensure the continued attractiveness of assets would trade mix optimization asset enhancement and targeted leasing particularly from <unk>.

Chinese mainland tenants.

On the Chinese mainland France.

Sales momentum has improved across selected categories tenant remixing refreshed layoffs and new concept remain a key part of our leasing strategy.

As for the International business, Singapore, and Australia continued to deliver steady performance underpinned by high occupancy.

Emmanuel Farcis: As for the international business, Singapore and Australia continue to deliver steady performance underpinned by high occupancy, positive double-digit rental reversions, and constructive leasing outcomes. In a nutshell, the continued relevance of our assets across markets is anchored by proactive asset management and resilient fundamentals. In Hong Kong, leasing conditions have remained resilient, with occupancy sustained at a high level. Also, rental reversions continue to sit in the high negative single-digit range. Against this backdrop, tenant sales and occupancy costs have shown early signs of stabilization. We remain well aware of the structural shift driven by cross-border e-commerce. In response, and as mentioned in the prior slide, we are piloting a new pickup service, starting with a small number of self-operated pickup points.

<unk> double digit rental reversion and constructive leasing outcomes.

In a nutshell the continued relevance of phosphates.

<unk> market is anchored by proactive asset management and resilient fundamentals.

In Hong Kong leasing conditions have remained resilient.

With occupancy sustained at a high level also rental reversion continue to sit in the high negative single digit range.

Against this backdrop tenant sales and occupancy cost have shown early signs of stabilization.

We remain well aware of this structural shift driven by cross border E Commerce.

And in response and as mentioned in the prior slide we are piloting a new pickup service starting with a small number of self operated pickup points.

This initiative is designed to reinforce fruitful and hence lost my relevance and deepen community engagement, while engaging shoppers saturation across a wider more system.

Emmanuel Farcis: This initiative is designed to reinforce footfall, enhance last mile relevance, and deepen community engagement while engaging shopper circulation across a wider mall system. Moving on to car parks. We continue to further optimize the revenue model to strengthen the resilience of our earnings from the segment. Dynamic pricing continues to provide support, while adjustments to utilization and pricing structures are aimed at enhancing income sustainability. Looking at the other assets, overall occupancy remained largely sound, with Hong Kong office near full occupancy, while Chinese mainland offices and logistics remain healthy. In Hong Kong offices, market sentiment has shown some improvement, supported by demand from the banking and finance sectors, with vacancy pressure in Kowloon East easing. Chinese mainland offices continue to demonstrate resilient take-up following asset upgrades, although leasing terms remain under pressure amid elevated supply.

Moving on to call box.

We continue to further optimize the revenue model to strengthen the residents of earnings from this segment.

Dynamic pricing continue to provide support while adjustments to utilization and pricing structures.

Aimed at enhancing income sustainability.

Looking at the other assets.

Overall occupancy remained largely sound with Hong Kong office near full occupancy, while its Chinese mainland offices I'm logistic remain healthy.

In Hong Kong offices market sentiment has shown some improvement supported by demand from the banking and finance sectors.

I can see pressure in Canada and east easy.

Chinese mainland offices continue to demonstrate resilience pick up following asset upgrades.

Leasing terms remain under pressure.

Elevated supply.

Chinese mainland logistic remain well leased.

Heightened competition with demon supported by domestic ecommerce growth and third party logistics providers.

Emmanuel Farcis: Chinese mainland logistics remain well-leased amid heightened competition, with demand supported by domestic e-commerce growth and third-party logistics providers. Finally, with the international office portfolio, leasing traction has improved, with core assets showing greater resilience amid an ongoing flight to quality trend. I will now hand to KS to walk through capital management and cost optimization.

Finally, with international office portfolio leasing traction has improved with core assets showing greater residents.

Ongoing flight to quality trend.

I would now into chaos to walk through capital management and cost optimization.

Thanks Emmanuel.

On capital management.

Kok-Siong Ng: Thanks, Emmanuel. On capital management, Link is well positioned amid the challenging macro outlook, thanks to its strong financial position underpinned by a healthy balance sheet, as reflected in the key metrics shown. Strong access to capital markets is supported by disciplined capital management, effective interest cost control, and a high hedge ratio, providing earnings stability amid market volatility. Funding sources remain well-diversified, spanning bonds, bank facilities, and convertible instruments with well-established banking relationship across the Asia Pacific region. Key credit metrics reflect a strong and healthy position with conservative gearing and low funding costs. Active refinancing execution during FY2526 secured funding across multiple tenors at competitive rates, extending debt maturity and optimizing the funding profile. Refinancing execution has also been proactive with HKD 15 billion refinanced as at February 2026, leaving only HKD 12 billion for the coming financial year.

Lindsay is well positioned amidst the challenging macro outlook.

Thanks to a strong financial position underpinned by a healthy balance sheet.

Reflected in the key metrics shown.

Strong access to capital markets is supported by a disciplined capital management effective interest cost control and high hedge ratio.

Providing earnings stability.

Market volatility.

Funding sources remain well diversified.

Spending bonds bank facilities and convertible instruments.

We've really established banking relationships across the Asia Pac region.

Key credit metrics reflect a strong and healthy position.

Conservative gearing and low funding costs.

Active refinancing execution during FY 2526 secured funding across multiple attendance at competitive rates.

Extending debt maturity and optimizing the funding profile.

Refinancing execution has still been proactive with 15 billion Hong Kong dollars refinance.

At February two zero to six leaving only 12 billion for the coming financial year.

This length outlines the progress of our cost optimization efforts.

We have an emphasis on strengthening the operating platform in a sustainable way.

Kok-Siong Ng: These slides outline the progress of our cost optimization efforts with an emphasis on strengthening the operating platform in a sustainable way rather than delivering one-off savings. At the organizational level, we have adjusted the management structure to better align our strategic priorities and the external environment. By reducing layers and strengthening our mid-level management, we have improved agility and decision-making while maintaining appropriate oversight. Taken together, these actions underpin annualized savings that are now expected to exceed our previously communicated HKD 200 million target from the next financial year onwards. In parallel, we are improving efficiency across daily operations. Increased use of technology and automation is helping to enhance productivity and consistency, while the consolidation of facilities management arrangements supports cost control amid ongoing inflationary pressures and regulated wage increases.

Rather than delivering one off savings.

At the organizational level.

Adjusted in the management structure to better align with our strategic policies and the extent of the environment.

Reducing leah and strengthening our mid level management improve our agility and decision, making while maintaining a corporate oversight.

Taken together these actions underpin annualized savings are now expected to exceed our previously communicated that 200 million Hong Kong dollars target.

From the next financial year onwards.

In parallel we are.

Improving efficiency across daily operations.

Increased use of technology and automation is helping to enhance productivity and consistency while.

The consolidation of facilities management.

Arrangements supports cost control, I mean ongoing inflationary pressures and regulated which increases.

Overall these initiatives contribute to a leaner and more resilient operating model.

Kok-Siong Ng: Overall, these initiatives contribute to a leaner and more resilient operating model, providing capacity to support stable and sustainable returns over time for our unitholders. I'll now hand over to John to walk through our focus areas. Thank you.

Providing capacity to support stable and sustainable returns over time for our unit holders.

I'll now hand over to Jon to walk through our focus areas. Thank you.

Turning to our focus areas our priority is to sustain unit holder value delivered through harnessing our core strengths and retail malls selected capital recycling and cost discipline.

John Saunders: Turning to our focus areas, our priority is to sustain unitholder value delivered through harnessing our core strength in retail malls, selected capital recycling, and cost discipline. We continue to leverage our core capabilities by actively managing and optimizing our retail and car park assets across Asia Pacific, with a clear focus on protecting occupancy and reinforcing portfolio fundamentals. Beyond day-to-day management, we're also introducing targeted initiatives to address structural retail challenges, such as rolling out our collection point initiative to respond to community needs and improve footfall, and refining our car park revenue strategy as part of a broader approach to asset optimization. Secondly, we will continue to advance capital recycling focused on non-core assets, including selected office exposures, whilst maintaining flexibility around timing and potential returns of excess capital. Thirdly, cost optimization remains a key management focus.

We continue to leverage our core capabilities by actively managing and optimizing our retail and car park assets across Asia Pacific with a clear focus on protecting occupancy and reinforcing portfolio fundamentals.

Beyond the day to day management, we're also introducing targeted initiatives to address structural reach out challenges such as rolling out our collection points initiatives to respond to the community needs and improve footfall and refining our copper revenue strategy as part of a broader approach to asset optimization.

Secondly, we will continue to advance capital recycling focus on noncore assets, including selected office exposures, whilst maintaining flexibility around timing.

Potential returns of excess capital.

Thirdly cost optimization remains a key management focus meaningful actions have been taken to mitigate business precious with enhanced operating efficiency, including the consolidation of our integrated facilities management arrangements, which is delivering tangible savings and supporting margin resilience.

John Saunders: Meaningful actions have been taken to mitigate business pressures with enhanced operating efficiency, including the consolidation of our integrated facilities management arrangements, which is delivering tangible savings and supporting margin resilience. As KS mentioned earlier, we've also simplified and streamlined the executive structure, enabling the organization to operate more effectively while continuing to generate cost savings. Lastly, against the backdrop of ongoing geopolitical uncertainty, we continue to closely monitor developments and maintain a prudent, measured approach to both cost management and portfolio positioning. While market conditions remain challenging, our focus on non-discretionary retail continues to provide a degree of resilience to the business. With that, we thank you all for your time and participation today.

As Chris mentioned earlier, we've also simplified and streamlined the executive structure, enabling the organization to operate more effectively while continuing to generate cost savings.

Lastly against the backdrop of ongoing of geopolitical uncertainty, we continue to closely monitor developments and maintain a prudent measured approach to both cost management and portfolio positioning.

While market conditions remain challenging our focus on non discretionary retail continues to provide a degree of resilience to the business.

With that we thank you all for your time and participation today.

So now on that Scott, but it's tough questions. We're happy to take questions from call Center, marking.

Christy Lam: Now let's start. For the first questions, we have few questions from Carl from JP Morgan. First question, can you comment on the tenant sales trend so far year-to-date? Has this improved versus the last quarter? In particular year-to-date, have our tenant sales outperformed in line or underperformed the Hong Kong overall average? There's another question, what's your latest guidance on rental reversion for the next six months or so? Do you expect the negative rental reversion to be similar or there may be improvement? Thank you.

Question can you comment on dependence ALS trends sulfide, which banks have been M. P.

Last quarter impacted language today have our opinion plus alpha falls in line or underperforming for Hong Kong.

And then one other question, what's your latest guidance on gradual reduction another six months or so yeah.

The magazine rental investment seminar or that might be in treatment.

Is that a woman.

And so on.

Emmanuel Farcis: I'll take that one.

Okay.

Christy Lam: Sure.

Emmanuel Farcis: On the-

Alright.

You also got to take that Port authority on.

The sale of a thing.

Generally speaking.

John Saunders: Yeah.

Emmanuel Farcis: Yeah. Also, would like to take that one. On the sales, I think, generally speaking, our sales do not perfectly correlate with the market. But what we've been seeing is a slight improvement on some of our core categories. The market, as you know, has been driven by sales on luxury goods, electronics, and where we do have these categories in our larger malls, these have been performing very well. On our core categories of F&Bs and supermarkets, we've been seeing some improvement compared to last year. That's an overall trend of gradual improvement that we've been seeing, but we are still cautiously optimistic about this.

All sales to look perfectly correlates with the market.

But what we've been seeing.

It is a slight improvement.

All categories.

The market is being driven by.

Sales of luxury goods electronics, and where we do have these capabilities you know larger loans.

This will be performing very well.

Although core categories.

As in the supermarkets.

<unk> seen some improvement compared to last year.

Global trend of gradual gradually improvements that we've seen maybe.

You can see basically all you are cautiously optimistic about this what it means is that basically all payments.

I've been working on.

Emmanuel Farcis: What it means is that basically our tenants have been working on improving their sales through promotions, through pricing, through reviewing their, say, supply chains. We do see some of that starting to pay off.

Improving their sales through promotions through pricing.

We're giving here let's see.

Our supply chain and we do see some of that starting to appeal.

Hi.

Thank you.

Next we have question from basically thinking.

Christy Lam: Thank you.

Emmanuel Farcis: Thank you.

Now that's a questions from <unk> and also of our common stock on the questions.

Christy Lam: Next we have questions from Cindy. Cindy. The first question from Cindy is also about tenant sales and reversion. I believe Emmanuel has just addressed it already. Second question, how would management interpret the escalated decline in supermarket? Any plan to downsize or repurpose non-supermarket area? Maybe we have Emmanuel to address this question first.

I believe.

Okay.

And my second question.

Management and Cabot.

That's great and it takes time for the market any brands downside or it's not very extensive market area.

And then I'm sure maybe what happened why don't you address this question.

So I think on the Oh supermarkets.

Emmanuel Farcis: Yeah.

What do we are seeing is really the supermarket operators have been.

Christy Lam: Before we go to the next.

Emmanuel Farcis: I think on the supermarkets, what we are seeing is really the supermarket operators have been investing again into their pricing, into their shop presentation, their stock presentation, reducing the price differential between Hong Kong and the mainland, investing in promotion. When we look at the performance of supermarkets in our portfolio, we do see slight improvements year-over-year. Every quarter has been seeing some better sales. At the moment, we don't see any consolidation from our supermarkets. We do work on some aspects on their online sales as well.

Investing again as a proxy.

This issue has stopped presentation.

Would you say.

The price differential between.

On the mainland.

Investing in promotion and from.

Markets.

For Ya.

We do see a slight improvement year on year every quarter has been seeing.

Better assess them.

At the moment, we don't see any.

Consolidation for most of the markets.

We do work on.

So.

That's based on online sales as well so why it was a footprint footprint might be.

It's the same.

Emmanuel Farcis: While, you know, the footprint, the physical footprint might be the same, the SKUs that might be delivered at a given supermarket through online is expected to increase. That generate more sales through the same footprint. We continue to see supermarket as a very important element of our trade mix and the proximity that it provides, and how it serves the community living above, sorry. One thing going back also to the question on reversion. I think when we look at the outlook, we do expect reversion to remain negative at around the same level as the one we had for 25, 26.

Skus that might be the legalese.

Keven supermarkets.

<unk> is a.

As.

Expected to increase does that generate more sales for the same footprint. So.

We continue to see supermarkets.

A very important elements of.

Trading and the proximity that it provides.

The committee meeting.

Well everything both sorry.

One thing going backwards.

Question at all.

Reversion.

I think we just got to see.

Yep.

<unk>.

<unk> expects reverse should remain negative.

Around the same level.

So why don't we ask what's been fun.

And that is really the crews.

We are continuing to see more through the leasing cycle that started about three years ago.

Emmanuel Farcis: That is really because of we are continuing to see the wash through the leasing cycle that started about three years ago. That was reflected in higher rents, based on optimism about the recovery from COVID as we see the reopening of the markets in Hong Kong.

That's what is reflected in higher rates.

It's almost too about the recovery from Covid.

<unk>.

Reopening and so you get a market.

Okay.

<unk> seen they have the management thoughts on buyback given your current valuation buying back your own shares city more attractive than <unk>.

Christy Lam: Thank you. Next one still from Cindy. Cindy. Has the management thought on buyback? Given your current valuation, buying back your own shares seeming to be more attractive than most investments outside. The fourth question is, may we have an update on fund management business? November, we mentioned initial $1 billion raised. When do you target to officially launch the fund? And does it hinge on acquisition pace in Australia?

Hey, vaccinated outside yet.

First question, maybe I have an update on our monitoring business no. One that we mentioned and Michele You Act as a one rate right because it's high density officially launched at them and their patients.

Acquisitions, mainly in Australia.

Yeah, Let me, let me take a look at any time, we always maintain portfolio discipline.

John Saunders: Yeah. Let me take that. Look, at any time we always maintain portfolio discipline. I would say, you know, the bottom 5% of what we own is always being assessed for potential disposal and recycling. Some of you will have seen because it's, you know, in the public domain that we're involved in the sale of an office asset in Australia. At the moment, 100 Market Street, and we should be able to bring you more news of that going forward. I think that portfolio discipline is important. When it comes to looking at purchases, yeah, you're absolutely right. I mean, we're trading at, you know, a little more than a 7% yield at the moment.

I would say you know the bus and 5% of what we own is always being assessed for potential.

Disposal and recycling.

Some of you will have seen because it's.

In the public domain that were.

<unk> involved in the Santa Ana.

On assets in office assets in Australia at the moment.

100 market Street, and we should be able to bring you more news of that going forward.

So I think that portfolio discipline is important and then when it comes to looking at purchases yeah, you're absolutely right. I mean, we're trading at a you know a little more than a 7% yield at the moment. So therefore.

What was already a high bar to purchase.

Hum becomes Ah you know even mortality I think when youre trading.

John Saunders: Therefore, what was already a high bar to purchase becomes, you know, even more telling, I think, when you're trading at that level of yield. The answer is yes. Where we have excess capital, we would, as we've said, expect to be recycling that excess capital back to back to shareholders. In terms of the third-party side, we've talked about the $1 billion that we have under management at the moment. That does actually include the fund. I would say roughly two-thirds of it's in separate accounts, and the rest is in the fund. It doesn't, it's not contingent on any specific Australian asset per se. You know, we're committed to the journey.

Level of yield so the answer is yes, where we have excess capital.

We would as we said expect to.

Be recycling that excess capital back to.

Two shareholders.

In terms of the third party side, we've talked.

Talked about the 1 billion that we have under management at the moment that does actually include the fund.

I would say roughly two thirds of its in separate accounts.

And the rest is in the fund.

It doesn't it's not contingent on any.

Any specific Australia and asset per se.

We're committed to the journey I think it's fair to say that with all the middle East political uncertainty that's ongoing at the moment.

John Saunders: I think it's fair to say that, with all the Middle East political uncertainty that's ongoing at the moment, that it's, you know, quite hard work raising capital. We are at HKD 1 billion spread between the separate accounts and the fund business.

The.

It's quite hard without raising capital, but we are a $1 billion.

Spreads between the two.

Separate accounts and from business.

Okay.

And then if they have questions from government permit.

Christy Lam: Thank you. Then we have questions from Simon Gorman. You talked about signs of stabilization in retail sales and rents. When exactly have you observed? Also he asked about if there is any update regarding the Link REIT 3.0 strategy and fund management business.

You've talked about signs of stabilization stabilization and we passed up on rent when they stop really happy of Upsides and also you asked about if there's any update regarding the length, we see everyone else strategy I'm absolutely.

I think when we look at gross sales in Hong Kong. This past April nine months were showing for the cube size.

Emmanuel Farcis: I think when we look at gross sales in Hong Kong in the past 8 or 9 months, we're showing positive signs. Again, I mean, for us there is a slight disconnection between the sales in the overall market that have been mostly driven by electronics, valuable goods. Again, when we have these categories in our mall, they've been performing quite well, but they are small proportion. When we look at certain categories, along some of the F&Bs, along supermarkets, we've been noticing that for the past 2, 3 quarters, this is still a little bit patchy. What we are doing is basically focusing on the management of the portfolio in terms of maintaining very strong discipline in terms of cost and efficiency.

And again I mean for a series of slides.

This connection between the sales and the overall market that have been mostly driven by electronics.

And Bruce and again, when we have this category.

Quite well, but they are small.

Propulsion.

Then when we would've had certain categories.

Loans some of the F&B along supermarkets, we've been noticing that for us.

Two or three quarters.

This is kimberly that sheet.

And what we are doing is basically focusing on.

Management of the portfolio.

Thanks.

Very strong discipline in terms of cost and efficiency.

Our support teams.

Supporting all tenants.

Emmanuel Farcis: Supporting our tenants as much as possible. We are piloting new initiatives in terms of e-commerce and embracing e-commerce with the launch of a new initiative called Link Collect, where we will be running our own pickup points. The idea with this is really to ensure that we consolidate, solidify our role in the community, bring in footfall and bring ancillary sales. Whenever somebody is coming to our pickup point, which we want to be of the highest quality in the neighborhoods, they will also spend on the nearby shops. We are also looking at the car park income on that front. We are doing everything we can in our power to really focus on the performance of the portfolio while retail sales improve gradually.

That's possible.

Final two leading the <unk> in terms of.

E Commerce.

Embracing e-commerce with a long short.

<unk> leadership team.

Crude linked collect where we would be running.

Ill pick up once the idea is this is really to ensure that we consolidate soybeans via a rule in the community to bring fruitful and bring ancillary sale. So whenever if somebody is coming to a point, which would also be yielding the highest qualities neighborhoods.

Dan.

Oh, okay.

Davita body shops, we are also reaching up to the top box and calm on that front. So we're doing everything we can count on and off our to really focus on the performance of the portfolio wide retail sales.

Improve.

Gradually.

Again faced with this uncertainty agricultural what we can control.

Emmanuel Farcis: Again, faced with this uncertainty, we control what we can control. That's the gist of it.

So that's that's subsea.

So just a bit.

Okay.

So for the next questions just now regarding the main people know I think we have always done already aircrafts.

Christy Lam: For the next questions, just now regarding the Link 3.0, I think, John already addressed on the update on this fund management business. We also have KS asking about the progress of fund management, which we addressed. Karl Choi asking about, are there any criteria for returning capital to shareholders? For example, certain percentage of proceeds. Would Link only sell assets at book or above book value?

Update on this unmatched indebtedness.

And then the half so without that calf asking about progress on fund management, it's a threat.

And then.

Call time, asking about are there any quite team athlete caring in capital to shareholders.

By example, the second percentage hospitals will only sell assets at or above book value.

Yeah, and I think as I said, the book or above book I think the real focus is whether it's you know.

John Saunders: Yeah, look, I think as I said, book or above book, I think the real focus is whether it's core and whether the asset's fully mature. I think we'll always try and maximize the price that we can get in the market, of course. We also need to have thought and look as to what the future outlook is of the assets as well. I think in terms of recycling into or recycling capital back to shareholders, I think we have to look at it on a case-by-case basis. We have to be cognizant also of that we are a dividend stock.

Whether it's cool and.

Either the assets fully mature I think we will always try and maximize the price that we can get in the market of course.

But then we also need to have.

So look as to what the future.

Outlook.

As of the Uh Huh.

Of the assets as well.

I think in terms of.

Recycling into Oh recycling capital back to shareholders I think we have to look at it on a case by case basis.

Have to be cognizant also of.

We are.

A dividend stock.

But we are I think it's fair to say very committed to.

John Saunders: We are, I think it's fair to say, very committed to recycling the areas of the balance sheet that we don't see as core and that we've assessed for potential disposals, if that answers the question, I hope.

Recycling.

The areas of the balance sheet, but we don't see as core and that we've assessed for potential disposals, if that answers your question.

Okay and then they have a question from Mark arguably at this time, we have separated <unk> and copper from other asset should we expect the once you saw the opposite and not just stick on handsets.

Christy Lam: Thank you. We have a question from Mark, UBS. This time you separate retail and car park from other assets. Should we expect you want to sell the offices and logistics on hand? And on the car park, should we expect a full year decline in revenue? And how do we see the retail occupancy for Hong Kong as of today?

And on the copper so we expect a full year, but not on rockdale.

And how do we see the retail occupancy.

Hong Kong is not today.

I'll.

Starting with.

To the second question the top again.

Emmanuel Farcis: Shall I start with the second two questions?

Hum on the Dropbox, So to say one thing is we've been launching.

Christy Lam: The car park and the retail.

Emmanuel Farcis: Yeah, the car park. On the car park, two things. One thing is we've been launching this year a number of new products. For instance, the one day pass, where monthly parkers, if they top up certain amounts, can have access to a number of car parks outside of their home car park, if you will. We've also been launching initiatives such as differentiated parking rates so that during peak season, during festivals like Chinese New Year. This has been quite successful in terms of bringing additional revenue, and somehow that offsets the decline that we've seen last year in the number of parking tickets, which was an element of the economic situation and the fact that there were fewer cars on the road.

Sure.

New products for US is the one thing for us.

Monthly parkers.

Such an amount don't have access to a number of top box office I don't see a whole top box accumulator will also be launching initiative such us differentiated at Kings marketing rates was asked during peak season.

Are you doing.

Festivals like Chinese new year.

A quite successful in terms of bringing additional revenue as some hall that offsets declines that we're seeing loss sharing.

Parking tickets, which was.

Yes.

The amendment or.

Can you kind of the economic situation.

Afterwards, she would call some of the growth.

So no we are continuing with this type of initiative. So we are looking at.

Emmanuel Farcis: Now we are continuing with this type of initiative, so we are looking at structuring our pricing differently in the coming future. At the same time, where we could be cautiously optimistic is the cost of ownership of a car has dropped significantly, because of the import of EV from China, and therefore we do see the number of car registrations stabilizing, not yet increasing again. Again, what we are doing is against the market situation is to come up with new products and new pricing structures that can counteract the drop in tickets. If we look at the occupancy in the portfolio, this is a key focus for us. We do see the occupancy staying at the same level of around 97-ish type of band.

Structuring all pricing differently.

<unk>.

In the future at the same time, where we could be cautiously optimistic as the cost of ownership.

It's dropped significantly.

Because of results to report.

<unk> from China.

We use these calls registration stabilizing what hits increasing again.

Again, what we are doing is against the market situation is to come up with new products.

Pricing structures that can come through.

It's a drop through.

Okay.

If we look at sea.

Occupancy in the portfolio overseas.

A key focus for us.

We do see Youll see staying at the same level of Robinson Lucky seven ish.

Cycle time.

And this is very very important because that cash.

Cash was up in activity.

Emmanuel Farcis: This is very, very important because that maintains cash flow, that maintains activity. As it's a result also of the dynamic leasing and reletting that we are doing when we are replacing tenants that are not performing, we are bringing in new tenants as quickly as possible. We are expanding the range of some of our key categories. For instance, bringing F&Bs from the mainland. We are keeping a very high retention rate at around 80%. Again, the occupancy, we do expect it to remain within the same levels.

<unk>.

It's a reasonable score dynamic.

When we get something that we are doing well and we are replacing tenants that Paul.

We are bringing in new tenants.

As quickly as possible.

Lenses that range of seven key categories.

Excellent.

The mainland.

We are keeping very high.

A very high retention rates as well so again, we do expect it to remain within the same level.

That's it.

And Yeah, and then just now also mark asked about well they affected salad offerings on logistics on the handset.

Christy Lam: Thank you. Yeah. Just now, also Mark asked about, do we expect to sell the office or logistics on hand.

Yeah look I mean.

Cool link is being Asian hub.

John Saunders: Yeah. Look, I mean, core for Link is being an Asian retail mall operator with car parks in Asia. I think, you know, office we have to look at as potentially non-core. I think any assets outside of Asia we have to look at as potentially non-core. We said before that, you know, the bulk of what we want to do is going to be an Asian mall and car park operator. That's the focus. Office, logistics, I think all of those we would deem as non-core. Doesn't mean they'll necessarily all be transacted at the same time or in highly short order.

Our retail mall, operator with compounds in Asia.

So I think office.

We have to look at as potentially noncore.

I think in the assets outside of Asia, we have to look at as potentially non core we said before that the bulk of what we want to do is going to be in Asia more of a comp.

Operator.

That's that's the focus.

So office logistics I think all of those.

We would deem as non core it doesn't mean necessarily O b.

Transacted at the same time or in highly Shaw soda, but as I said to you we're always looking at the 5%.

John Saunders: As I said to you, we're always looking at the 5% of the balance sheet that may need recycling or repurposing, and that is how we would categorize it.

The balance sheet that may need recycling or repurposing and that is how we would categorize it.

John Saunders: As I said to you, we're always looking at the 5% of the balance sheet that may need recycling or repurposing, and that is how we would categorize it.

Okay.

And then I'll step back.

Hey, Allison also asked about the noncore this month also.

Christy Lam: Thank you. CLSA, Alvin also asked about the non-core disposal. I guess, I believe, John already addressed on that. He also asked about if there is any new assets to grab it or category mix targets for us. John, do you want to address that as well? Like, will we target any new, regions or categories?

Yeah, John I'll idea Jack on that.

He also asked about if there's any new assets still grave all our category mix topic.

Yeah.

Okay.

John do you want to address that as well right.

How about any meal on weekends, our corporate area.

I think where we are.

Yeah.

We're focused on predominantly on what we have as I said to you before.

John Saunders: No, I think we're, you know, focused predominantly on what we have. As I said to you before, you know, when you're trading at a 7% yield, there's a very high bar for any asset that's going to outperform that, as it were. I think for now, we're happy with the geographical exposures that we have. Overlaid, as I mentioned to you, with the fact that, you know, I'll reiterate again, core for us is retail and car parking. We're an Asian mall operator, and if we have excess capital then, you know, we'll return and recycle that to shareholders as appropriate.

When you're.

Trading at a 7%.

Yield.

Theres, a very high bar for.

Any asset that's going to.

Outperform masses.

So I think for now we're happy with the.

Geographical exposures that we have overlaid as I mentioned to you with the fact that.

I'll reiterate again core for us is reach out and car parking where an Asian mall, operator, and if we have excess capital then.

<unk>.

We'll return and recycle that to shareholders as appropriate.

Yes.

We have a question for Mark.

China retail rents or a regression.

Christy Lam: Thank you. We have some questions from Mark. What is China retail rental reversions and the outlook?

Outlook.

While the outlook for China.

If we look at northern China, Beijing, <unk> being challenged.

Emmanuel Farcis: Well, the outlook for China is if we look at Northern China, Beijing is still being challenged by two things. One thing is weak consumer demand and a number of competition. We also had in China, in Northern China, rentals that were at elevated and unsustainable level, and so we are flushing this out. We would expect reversion to remain slightly negative, but to improve in Northern China from where it was.

Slide two things one thing is with consumer demand.

A number of.

Competition so.

We also had in China in Northern China.

Rental was up.

TWC stable level and so we are flushing itself. So we would expect regression to remain slightly to really gets you but.

To improve.

In order to improve from where it was.

Not to say that when we look at some of our malls in China.

Emmanuel Farcis: That said, when we look at some of our malls in Northern China, some of the revising is being done, but also the focus in terms of positioning and in terms of trade mix that brings in that has seen positive results in terms of footfall, in terms of sales. Southern China is faring better overall, with positive reversion, positive outcome on the back of some of the leases and on the back of some of the repositioning and change of tenants as we've been doing in the past 12 months.

So we'll see.

So the base is being done but doing so with a focus.

Paul.

In terms of.

Positioning in terms of.

Trading is not breathing.

Positive results in terms of fruitful in terms of.

Sales.

Southern China is showing better overall.

Yes.

Obviously, we wish.

Obviously, those columns backups for LTE backhaul.

So much opportunity in China, and then subsequently.

The boss.

Months.

Okay. Thank you. So we've got a few questions regarding the disposal. So I believe we have.

Christy Lam: Okay. Thank you. We got a few questions regarding the disposal. I believe we have already addressed it. Then we have these questions from Carl. Do you have any update for the search for new CEO? And should we expect a new CEO will be onboarded? Maybe for these questions I will answer, because our management here is not involved in the search. We are still running the comprehensive search at the moment and picking the proven candidate with international experience and then also will be a proven real estate investor and business manager for a listed company. It will take time, and if there's any update then we will update very timely to you all.

Okay.

They have big questions meet gardening.

Do you have any update for such financing for that and should we expect on this year all of our being on boarded.

Maybe this question I'll ask that.

It gives them a.

<unk> management has not.

Bob in the site so.

We are still doing a running that company had that at the moment at the Kinder prevent a candidate for that with international experience and then also and will be after the anvil ethane and business manager.

The company, which it will take time and if there's any update there will update.

Barry <unk> and Meanwhile, we have this <unk> structure, that's quite a very strong pain, which sometimes can get yesterday. So all they have a great CFO Dio. So a couple right at Pepsi I'll respond to that piece at the moment, there's nothing teed up the check and the port and the change also agree Keith.

Christy Lam: Meanwhile, we have this interim structure backed by the very strong team, some of which you're seeing here. We have our group CFO and CIO to cover the group CEO responsibilities at the moment, reporting to the chair and the board. The chair has also agreed to commit more time in this point of time as the independent non-executive chair for Link under the new arrangement running from 1 January until the end of May 2027. I believe that at the moment we are still very well covered by the very strong team and will update very soon. Next, let me see if there is any further questions. Okay, we got these questions from Goldman Sachs.

Mark.

It went up time at the independent non executive chair leg under the new arrangement renting from Jan and the team at the end of May till two seven so.

So.

I believe that at the moment, we are still in a very covered by the very strong team.

Great.

Tim.

And let me see if Ed Democrat aircrafts yet.

Okay.

Okay, We got this.

Question is from government tenant to make sure I understand correctly, given where our stock was trading at rapidly.

Christy Lam: To make sure I understand correctly, given your stock is trading at relatively undemanding valuation, is it hard for you to find value-accretive acquisition opportunities?

And demanding that range.

Hoffman answer bot.

<unk> added a cricket acquisition opportunities.

Yeah as I said when you when you were in stock is trading at that sort of level, we always have a very high bar for acquisitions anyway.

John Saunders: Yeah. As I said, when you know, when your own stock is trading at that sort of level, we always have a very high bar for acquisitions anyway. You know, it has to be a strategic fit. You know, that for us is malls in Asia. In very simple terms, when you can buy your own stock at over 7%, that raises the bar even higher and then focuses one's mind in terms of excess capital recycling.

Has to be a strategic.

Fit so again that for us is malls in Asia.

But in very simple terms when you can.

Buy your own stock.

7% that raises the bar.

Even higher and then focuses one's mind in terms of.

Excess capital recycling.

So all we have time for maybe one or two more questions.

So mentally.

Christy Lam: Okay. We have time for maybe one or two more questions. Let me see. We have one question regarding about the fund management. Why do you want to remain committed to the fund management business when global operating environment is so uncertain and private market going through some stress?

So I have one question regarding the fundamental plan why do you want to remain committed to the fund management business when global upgrades.

Garment that sun, setting and private market going to subtracts.

I think Thats a fair question I mean the.

Ah I think.

John Saunders: Yeah, I think that's a fair question. I mean, you know, I think, you know, in reality it's a very small cost for a significant amount of optionality. I think is the best way to describe it. We've achieved some success with the fund and with third-party capital. You know, as I say, we're close to $1 billion, very close to $1 billion in total third-party capital AUM. We are committed to the journey. I think these capital raising environments, they ebb and flow. It certainly doesn't help what's going on in the Middle East in a general risk sense. Again, having said that, you know, some investors globally are more wary of investing into the US, and some of the benefits of that capital flow can be into Asia.

In reality, it's a it's a very small cost for a significant amount of Optionality I think is the best way to.

To describe it.

We've achieved.

We have some success with profound and with third party capital side as I say, we're close to $1 billion.

Very close to $1 billion in total.

Set by the <unk> we.

We are committed to the journey, but I think.

These capital raising of our it staff and flow it certainly doesn't help what's going on in the middle East and a general risk sense, then again, having said that.

Some investors globally.

More wary of investing into the U S and some of the benefits of that capital flows can be into Asia. So it's a long journey I wouldn't describe it as anything else.

Cost is relatively small and is already baked into our numbers.

John Saunders: It's a long journey. I won't describe it as anything else, but the cost is relatively small and is already baked into our numbers. The optionality remains very significant, so we'll continue to push ahead with it.

And the Optionality remains very significant so we'll continue to push ahead with it.

Okay.

Ooh.

Okay. Another question from Couch, how should we think about interest expense in the second half of Pacific benefit at that time.

Christy Lam: Thank you. Another question from Karl Choi. How should we think about interest expense in the second half of 26 versus the first half?

Thanks, Carl I think.

If you just track.

Kok-Siong Ng: Thanks, Carl. I think if you just track our fixed rate at about two-thirds of our loan books and the fact that first half, clearly there was a nice high HIBOR dip in March, April. Second half we'll probably see financing costs increase slightly. But I don't think we are going to see a lot more beyond what we announced for the last set of results at 3.2%, largely because of the huge component of the fixed. We have no incremental significant debt under management over the last six months.

Although fixed rates at about two thirds of our loan books.

And the fact that first half clearly there was a nice high baud deep in March April.

Second half, we will probably see financing costs incurred.

Increased slightly.

The one thing we are going to see a lot more beyond what we've announced for the last set of results at three 2%.

Lastly, because of the huge component of the fixed and we have no incremental significant debt under management over the last six months.

Okay.

Another one Australia any update for that.

Christy Lam: Okay. Another one. Australia. Any update for the landing Australia mall deals?

Finally, Australia Martin.

Okay.

Yeah I have.

I don't think its necessarily public information, but I think.

John Saunders: Yeah, I don't think it's necessarily public information, but I think our involvement in that particular deal is unlikely. I refocus you back onto the question of HIBORs and recycling of capital.

Uh huh.

Sure.

Our involvement in that particular deal is unlikely.

Hi, refocus you back home to the question of high Baas and <unk>.

Recycling of <unk>.

Capital.

Okay.

And that's all the time. So there is some follow up questions on the multiple on the planet regarding to sign off. Thank you yeah, what's the expectation for part of that.

Christy Lam: Thank you. For the fund, there are some follow-up questions on the management on the fund. Regarding the fund, how sticky are they? What's the expectation to find a third-party for capital deployment?

Small cap load flattening.

Yeah. So the answer is a pretty sticky.

The fund investors are stickier.

John Saunders: Yeah. So the answer is they're pretty sticky. The fund investors are stickier than the separate accounts, but both are sticky. If you have a separate account, then it's dependent on the desire for both parties basically to continue, you know, with the investment of that asset. With the fund, typically people are locked in from between 7 and 10 years, and the deployment schedule is typically 4 years. So both sides of that equation are sticky. The deployment schedule deliberately has a long runway to deal with, you know, bumps in the road like we're seeing in the Middle East at the moment, etc.

Then the separate accounts, but both are sticky.

If you have a separate account then it's dependent on.

The desire from proposed policy is basically to continue.

With the investments of that of that asset with the funds typically people are locked in from between seven and 10 years and the deployment schedule is typically four years.

So both sides of that equation is sticky and the.

Deployment schedule deliberately has a long runway.

To deal with.

Bumps in the road like we're seeing in the middle East at the moment et cetera.

Okay.

So.

Any more questions from ethanol.

Christy Lam: Thank you. Any more questions from the floor? If not, we will be looking forward to the upcoming final results in May. Oh, okay, we got one more. Maybe we can address that as well, please. Thanks, Cindy. Since you have increased the priority of capital recycling, what makes you change your mind?

It's not so where well be looking forward to the upcoming finally south in late May.

Uh huh.

Okay, and I got one more maybe.

Thanks Denis.

You have increased the priority.

Capital recycling, what makes you change your mind.

I'm just curious what changed your mind, maybe I was doing a less effective job of communicating the design previously.

John Saunders: Yeah, I'm not sure it's a change of mind. Maybe I was doing a less effective job of communicating the desire previously. As I say, we you know, I'm very keen, the whole management team is very keen on having very strong portfolio discipline. So we will. You know, we're always looking at you know, what are our keepers and what are the ones that aren't performing so much. I think there is very much a priority. I think that is a correct assumption and statement. We'll you know, hopefully bring you some good news on that in at a future time.

As I say we.

I am very keen in the whole management team is very keen on having very strong portfolio discipline.

So we will.

We're always looking at.

What are our key for some what are the ones that are performing so much on it.

Think it's a I think there is very much a priority I think that is a correct assumption.

Assumption and statement.

And we will actually bring you.

Some good news on that in a future time.

Okay.

So with that.

And that's no more questions may come to the end.

Christy Lam: Thank you. With that, if there's no more questions, we've come to the end of this quarterly update, and we look forward to see you again in our final results. The date of the final results announcement will be told very soon. Thank you.

What's the update and a lot of our acting CEO again, finding was that the data set that anyway.

Unless magazine will be.

It will be upheld fashion. Thank you.

Thank you. Thank you very much.

Emmanuel Farcis: Thank you.

John Saunders: Thank you very much.

Q3 2026 Link Real Estate Investment Trust Earnings Call

Request a DemoDemo

LKR

Link REIT

Earnings