Link REIT units hit six-month low after weak Hong Kong retail rents, brokers split on outlook

Link Real Estate Investment Trust (0823) units fell for a second day on Friday after reporting weaker interim results, with Hong Kong retail rents down 6.4 percent.

The units dropped as much as 8 percent to HK$35.90, closing down 7.47 percent, marking a six-month low.

Investor sentiment was sour, with some small shareholders cutting positions to limit losses.

Broker views diverged. JPMorgan downgraded Link REIT to “neutral,” citing cautious management comments and a forecast of worsening rent declines in fiscal 2026, with a target price of HK$38.

Bank of America kept a “buy” rating, noting mainland retail rents as the main drag, but lowered its target to HK$43.

CLSA maintained a “buy” call and raised its target to HK$51, saying most negatives were already priced in.

The firm highlighted its sector-leading yield and potential inclusion into stock connect as defensive attractions, but downgraded earnings forecasts due to weaker mall performance in Hong Kong and the mainland.