STOCKS | BofA Keeps Link REIT Buy Rating, Sees Stable Distribution

BofA said Link REIT's business is gradually stabilizing, but a quick turnaround is unlikely. Hong Kong retail passing rents remained sequentially stable, while mainland China retail passing rents rose 2.7% year on year, according to ETNet. The bank said Hong Kong retail tenant sales fell 1.1% in the first quarter, compared with implied growth of 0.5% in the March quarter. Management kept its target for distribution per unit to be broadly stable year on year in fiscal 2027, but sounded more cautious because of higher interest rates and utility cost risks. BofA kept its Buy rating on Link REIT and a target price of HK$46, citing an attractive forecast 6.4% dividend yield for fiscal 2027 supported by stable Hong Kong fundamentals, non-core asset sales and unit buybacks.