Link REIT: Asia's largest REIT at 6.2–6.6% — read the DPU downturn first, the zero withholding second
Composite-board score: 7.3 · Where it is strong: Net cash flow, Tax friendliness · methodology
Link REIT (0823.HK) is Asia's largest REIT: Hong Kong neighbourhood malls, fresh markets and car parks, plus Mainland, Australian and UK assets, with a policy of paying out 100% of its total distributable amount. Read the figures from both sides. FY2024/25's DPU was HK$2.7234 (+3.7%) — 6.65% at the HK$40.98 unit price, and Hong Kong REIT distributions carry no withholding tax: what is declared is what arrives, the cleanest distribution tax on this site. The other side is the trend: 1H FY2025/26 DPU fell to HK$1.2688, down 5.9% year on year — an annualised run-rate of about 6.2% — as negative rental reversions in Hong Kong and the Mainland eat into distributions. This site prints the 6.2–6.65% range with the decline as the headline's first fact, not the yield. The balance sheet is its ballast: NAV of HK$63.30 per unit (a price discount of about 35%), net gearing of just 22.5%, and Hong Kong retail occupancy of 97.6%. Verdict: do, on conditions — price it on the 6.2% run-rate, treat FY25's 6.65% as the ceiling, and track when half-yearly reversions turn positive. In this site's portfolio it is the ballast sleeve: a USD-pegged currency, zero withholding, daily liquidity — a mid-pack yield at the site's lowest friction.
In short: four lines first
Listed units, from about HK$4,100 per 100-unit lot
6.2–6.65%(Link REIT DPU and yield (FY2024/25 actual plus 1H FY26 run-rate))
Very hands-off (listed route)
The DPU has turned down: the 1H FY26 fall of 5.9% is a directional signal, driven by rental reversions in Hong Kong retail and the Mainland assets — if the FY26 full-year DPU falls again, this site's run-rate basis moves down with it.
The numbers that matter
Why we think it makes money
Distribution evidence and tax are both clean: the 100% payout policy is in the documents and the DPU series comes from results releases; with zero withholding, this site unusually needs no in-hand discount — gross is net.
The 35% NAV discount is its margin-of-safety shape: unlike the Korean REITs' discounts (priced on a refinancing wall), Link's discount sits against low leverage (22.5%) and defensive neighbourhood-retail cash flow — the same word 'discount', a different substance, decided by its cause.
It is this site's comparison origin: Brazil's 13% and Mexico's 7% must answer against Link's '6.2% plus zero withholding plus HKD' — what are the extra points of yield paying for in currency and tax risk?
How to actually get in
- Listed route: buy Link REIT units through any HKEX broker (100-unit board lots, from about HK$4,100), with no foreign restriction; distributions are semi-annual and received in full (no Hong Kong withholding), with home-country tax a separate matter.
What it costs, what it earns
Entry amount: Listed units, from about HK$4,100 per 100-unit lot
How much work for you: Very hands-off (listed route)
- The HKD is USD-pegged — still an FX exposure for a Singapore reader (SGD/HKD), but in a far narrower band than real- or peso-denominated names.
- The opportunity-cost reading: the run-rate has fallen to about 6.2%, and if negative reversions persist the next DPU may be cut again — price on the trend, not the static yield.
Basis: this site uses full-cost net returns only — income minus vacancy, management, maintenance, taxes and insurance, then financing interest, with entry costs in the denominator. See the methodology。
Identity & tax
Status (residency / citizenship)
This asset does not count toward the channel This asset leads to no status
Threshold: 净资产 ≥HK$3,000 万;投资 ≥HK$3,000 万(其中 CIES 投资组合 HK$300 万)
买 REIT 单位、买楼本身都不给身份。香港的投资移民是 New CIES(2024 年 3 月重启):须证明申请前 6 个月净资产 ≥HK$3,000 万并投资 ≥HK$3,000 万——≥HK$2,700 万投许可金融资产和/或房地产 + HK$300 万入 CIES 投资组合(香港投资管理有限公司管理)。房地产有顶:2025-09-17 起总上限 HK$1,500 万、住宅子上限 HK$1,000 万,且住宅须单宗成交 ≥HK$3,000 万才计入。住满 7 年可申永居。CIES 已列入本站身份枢纽的待评分队列;REIT 与住宅条目本身按纯现金流评估。
Source: InvestHK;香港入境事务处(New CIES 规则)
Tax (investor level)
全站最干净的分派税务:证监会认可 REIT 免利得税、分派无预扣税——非居民到账 100%,香港亦无资本利得税。
- 证监会《REIT 守则》要求分派经审计年度税后净收入的 ≥90%;领展的政策是可分派总额 100%。
Double-tax treaties: 无需协定:香港本身不征分派预扣税与资本利得税,居住国税务另论。
Source: 香港证监会 REIT 守则与 FAQ;港交所 REIT FAQ
This section is general information only — not immigration or tax advice. Program rules change frequently; before acting, rely on the official texts and a licensed adviser.
Risks: what could go wrong
What we have not verified yet
The following key figures have not yet been verified; the reason is noted for each item.
- The 6.2% run-rate is this site's annualisation of the 1H FY26 DPU: the full-year figure depends on second-half reversions and Mainland performance, per the FY26 annual report.
- The RVD indices (prices +3.25%, rental index 200.7) are cited via media reporting; this site has not quoted the RVD press release directly — follow the RVD publication when citing.
FAQ
- Why does zero withholding matter so much? Is it not similar elsewhere?
- It differs a great deal. In this site's in-hand chains, withholding is the first leak: Brazil takes 20% from non-residents, Mexico 30% of the taxable portion, the US 30%, Korea 22% (15% by treaty). Hong Kong takes 0 — Link's 6.2% run-rate arrives as 6.2%, and the gap to a Brazilian papel fund's '11% in hand' is not simply 4.8 points: one is in HKD, the other in reais. Align tax and currency before comparing any two yields — this site's universal first step.
- The DPU is falling — why "conditional" rather than below bar?
- Because the size of the fall must be read with the balance sheet: a 5.9% half-year decline against 22.5% net gearing, 97.6% occupancy and a 100% payout policy is cyclical reversion eating distributions, not structural hollowing (contrast Champion's two straight years of decline on office exposure, entry No. 78, whose conditions are heavier). Link's condition is pricing discipline — buy on the run-rate — not a survival concern.
- Link or Singapore S-REITs (entry No. 7)?
- Same species, different currency and assets: S-REIT net yields sit in a similar range in SGD (no FX gate for this site's readers) on Singapore commercial assets; Link wins on scale, the NAV discount and its USD-pegged exposure shape, and loses on the current DPU trend (S-REIT distributions are steadier). For a reader already holding S-REITs, Link adds Hong Kong neighbourhood retail and HKD differentiation — not a higher coupon.
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