Link Real Estate Investment Trust (Link REIT) saw its stock price plummet by 5.02% during intraday trading, despite announcing an increased distribution to unitholders. The sharp decline came as the company reported a net loss of HK$1.614 billion for the first half of its 2025/2026 fiscal year, overshadowing positive revenue growth and a higher distribution per unit.
According to the company's interim results, Link REIT's revenue rose by 1.8% year-on-year to HK$7.023 billion for the six months ended September 30, 2025. The trust declared a distribution of HK126.88 cents per unit, representing a 5.9% increase from the previous year. However, the substantial net loss, compared to a profit in the same period last year, appears to have spooked investors.
While Link REIT maintained its focus on cost management and diversification of capital sources, with its average all-in borrowing cost decreasing to 3.2%, the company warned that operating conditions could remain constrained in the second half of the fiscal year. This cautious outlook, combined with challenges in Hong Kong and Chinese Mainland retail segments, may have contributed to the negative market reaction despite the increased distribution and revenue growth.