"Big Banks" JP Morgan: Link REIT's latest leadership update suggests that the CEO search will take longer than expected

JP Morgan published a report indicating that LINK REIT (00823.HK) has updated its interim leadership structure. Although the main direction has not changed, this announcement may imply that the time required to find a new Group CEO could be longer than expected, as the announcement noted that Chairman Joseph Tsai has agreed to dedicate more time to support the Group's Chief Financial Officer and Chief Investment Officer until May 2027. In the view of the bank, the new CEO may not take office until 2027.

Morgan Stanley maintains a "neutral" outlook on LINK REIT for the following reasons: (1) In the face of challenges posed by cross-border e-commerce companies like Pinduoduo (PDD.US), there are currently no signs of improvement in rental recovery; and (2) the yield on the U.S. 10-year Treasury bond remains above 4.1%. However, at current levels, the stock should have downside protection, as it is trading at a yield of over 7.1%. The bank has set a target price of HKD 38 for LINK REIT