Lyon: LINK REIT (00823) accelerates capital recovery, reiterates outperforming the market rating.

Lyon released a research report stating that LINK REIT (00823) announced the sale of 50% equity interest in the trust structure of Sydney Market Street 100 for 225.9 million Australian dollars (approximately 1.24 billion Hong Kong dollars) to an entity under Aware Super. The transaction price is equivalent to 50% of the independent assessed value of the property as of the end of May 2026, which is 451.8 million Australian dollars. Although the execution time is earlier than expected, it aligns with the established strategy of the management to divest 5% to 10% of non-core assets in the portfolio. Lyon maintains a target price of 48.5 Hong Kong dollars for LINK REIT and a rating of "outperform the market", stating that the stock remains one of their top picks. The bank pointed out that LINK REIT plans to use the net proceeds for unit buybacks and reinvest in its core retail property portfolio in the Asia-Pacific region. This buyback will supplement the ongoing buyback program supported by the sale of Swing By @ Thomson Plaza, and it is believed that it will provide further support to the unit price of the fund.