STOCKS | CLSA Reaffirms Link REIT At Outperform, Sees Higher Dividend

CLSA reaffirmed Link REIT (01997) at Outperform with a target price of HK$42.2 after the company agreed to sell a Singapore mall for S$310 million, or about HK$1.91 billion, according to ETNet. The broker said the deal marks Link REIT's formal exit from the Singapore market and reflects the sale of non-core overseas assets above book value, with proceeds to be used to repay debt. It added that management has effectively turned previously undistributable gains into distributable cash flow. CLSA expects the transaction to lift Link REIT's dividend per share by about 1%, benefiting minority shareholders and reinforcing management's commitment to active capital management and higher shareholder returns. It also said the strategy remains uncommon among local property peers and could support a valuation re-rating. CLSA said Link REIT represents a strong recovery in Hong Kong luxury retail and continued improvement in capital management.