Bank of America Securities released a research report sayinggameroomnearme, the rating of Changzhan Real Estate Fund (00823) has been downgraded from "Buy" to "Neutral". It will announce its full-year results to the end of March on May 29 (next Wednesday), and its target price will be lowered from HK$44 to HK$38. Although the market knows that Link is facing retail sales pressure flowing to Shenzhen, there is still uncertainty about how long it will take to stabilize the situation.

The bank pointed out that the downward adjustment in potential renewal rents may limit Link's retail rental income in Hong Kong, thereby limiting the growth of distributable income per unit in the next one to two years. The compound annual growth rate for the fiscal year 2024 to 2026 is expected to be minus 1gameroomnearme.3%。The bank believes that Link's healthy 12.5% rental costs for Hong Kong tenants will offset the significant decline in rents and believes its valuation will also provide support. However, the bank does not expect that the upcoming inclusion of REITs in the Hong Kong Stock Connect will attract a large number of southern buying orders, because mainland investors already have many options for high-yield stocks.

The report mentioned that although Link Hong Kong's shopping malls may face pressure in the 2025 - 2026 fiscal year, its parking lots in China Hong Kong, Singapore shopping malls and Australian assets are expected to maintain steady growth. Rents of mainland shopping malls may undergo a neutral adjustment in fiscal year 2024. If the mainland economy stabilizes, growth may resume in fiscal year 2025. The bank expects that Link's occupancy rate will drop by 1 percentage point to 97%, resulting in a 2% to 3% decline in Hong Kong's retail rental revenue for the fiscal year 2025 ending March next year, and a 4% decline in distributable income per unit in fiscal years 2025 and 2026. 7%. The bank's current basic assumption is that retail sales losses will return to normal in 2025.