In "The Big Banks," Citigroup lowers LINK REIT's target price to HKD 49.2, still in the adjustment phase

Citi published a research report indicating that LINK REIT (00823.HK) has shown weak operational performance in the first nine months of the 2026 fiscal year and is still in an adjustment phase to cope with challenges from local e-commerce and competition from peers in Beijing. The sales of tenants in LINK REIT's Hong Kong shopping malls have seen a year-on-year decline narrowing to 1.5%, but still lag behind the overall retail sales recovery in Hong Kong.

However, the bank still believes that LINK REIT can benefit from the accelerated development of C-REITs and potential REIT connectivity; it has lowered its earnings forecasts for the fiscal years 2026 to 2028 by 2.3%, 6.2%, and 7.3%, respectively, due to reduced growth expectations for the mainland business portfolio and cost-saving forecasts; it maintains an "outperform" rating, with a target price reduced from HKD 51 to HKD 49.2, based on reduced fund distributions and the increase in U.S. Treasury yields. (ss/)