Link REIT's Ongoing Buybacks Likely to Support Unit Performance

Dow Jones
8 hours ago

0215 GMT - Link Real Estate Investment Trust's ongoing buybacks should support its units' performance, keeping DBS Group Research analysts bullish on the REIT.While its tenants' 1Q sales were weak, the trust seems to be on track to deliver annualized savings of 200 million Hong Kong dollars in FY 2027, the analysts say. The REIT's buybacks should also continue to mitigate its top-line pressure and support stable distributions per unit in FY 2027, they say. The buybacks also position the trust to be a resilient pick for investors amid a volatile interest rate environment, with any noncore asset disposals likely to be catalysts, the analysts add. DBS maintains a buy rating and HK$43.65 target price. Units decline 0.15% to HK$38.66.

 

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