EW00823 - Book 2 - FY2021
EW00823 - Book 2 - FY2021
EW00823 - Book 2 - FY2021
Materiality
Governance, Disclosures and Financial Statements
This report has been structured according to Link’s Vision 2025
This report provides our detailed governance, disclosures and
and Value Creation Process. The Board believes that Vision 2025
financial statements. Governance and disclosures sections are
represents the material opportunities that will drive value creation for
prepared in accordance with the REIT Code, applicable provisions of
our stakeholders. These material opportunities have been developed
the Listing Rules, and other relevant laws and regulations while the
taking into account our industry trends, the environment in which
consolidated financial statements have been prepared in accordance
Link operates, feedback from our key stakeholders and the inherent
with the Hong Kong Financial Reporting Standards, the requirements
risks of our business. Since 2014/2015, we have updated our annual
of the Trust Deed and the relevant disclosure requirements of the
sustainability performance solely on our corporate sustainability
REIT Code and audited by PricewaterhouseCoopers.
website: Linkreit.com/en/sustainability
Valuation Report
This report summarises the market value of Link’s individual
properties as valued by Colliers International (Hong Kong) Limited.
Governance
A Well-Governed Business 2
Disclosures
Disclosure of Interests 70
Trustee’s Report 92
Financial Statements
Consolidated Statement of Changes in Equity and Net Assets Attributable to Unitholders 103
Valuation Report
ESG Compliance
A Well-Governed Business
Our Corporate
Governance
Framework
Vision, Mission and Values, embedded as SFC oversight through the REIT Code and
Link culture SFO compliance and inspection
Clear delegation of authority between Board and Trustee oversight through the Trust Deed and
management periodic inspections
Regular updates to Board External audit and review
Risk management framework and internal control Stringent internal audit system
Whistle-blowing policy
Inside information monitoring and updates
The Board
The Board is central to the operation of Link’s corporate governance framework, which provides for effective
oversight and control. Under the direction of the Board, Link has implemented comprehensive systems and
procedures designed to promote Link’s long-term success and deliver sustainable value to Unitholders and other
stakeholders.
Led by the Chairman, the Board sets strategy and risk appetite, leads and provides insight to management, and
monitors business progress against agreed business targets. This is achieved through:
• strong independence of the Board and the Board Committees
• clear division of duties between the Board and the Board Committees
• clear division of responsibility between the Board and management
• diversified skills, experiences, expertise, gender and ethnicity among Board members
• strong and transparent Board process
Strong Independence
Our INEDs and the NED bring constructive challenge and critical judgement on management proposals, scrutinise
strategy and business performance against targets, and monitor risks and compliance.
INEDs may not serve on the Board The Chairman of the Board is required to be, and
beyond nine years is an INED
The assessment of independence of each of the INEDs is based on the independence criteria set out in the Link
Corporate Governance Policy which is modelled on and, in some aspects, exceeds the independence guidelines
of the Listing Rules. We reference from time-to-time major proxy advisors’ voting recommendations and guidelines
in approaching the issue of INED independence. All Link INEDs met the independence requirements of the Link
Corporate Governance Policy throughout the year under review.
Independence Weighting
Board
2020 (1)
INED NED ED
Note:
(1) 13 members as of 17 June 2021 against 12 members as of 1 June 2020
Nomination Committee
undertakes an annual
assessment to ensure that all
INEDs continue to demonstrate
strong independence and are
free from business or other
relationships which could
interfere with their ability to
discharge their duties
effectively On-going disclosure of
INEDs’ interests in Link’s any change in
businesses to be circumstances affecting
disclosed (of which there his/her independence
was none during (none during the year
the year under review) under review)
As part of the on-going independence assessment process, Directors have disclosed to the Manager the number
and nature of appointments held in Hong Kong and overseas listed companies and organisations, along with any
other significant commitments. Neither of the EDs held any directorship in any other listed companies during the
year. The CEO has participated in professional bodies, academic and public organisations. Each INED and the NED
has indicated the amount of time involved in respect of his/her outside-Link commitments and confirmed to the
Chairman that he/she has given sufficient time to the affairs of Link. No current Director held directorships in more
than three public/listed companies (excluding Link) during the year.
The Manager has received from each INED, his/her annual confirmation of independence in accordance with the
Link Corporate Governance Policy. Based on such confirmations, the Nomination Committee assessed and the
Board considered that all the INEDs maintained their independence throughout the year under review and up to the
date of this report.
During the year, the INEDs held a closed-session where issues were discussed in the absence of the EDs, the NED
and management.
Audit and
Risk Management 100% Nomination 75%
Committee INEDs Committee INEDs
Key duties: Key duties:
Review of financial reports and oversight of the Board performance evaluation
integrity of the financial statements Review of Board and Board Committee structure
Risk management and compliance monitoring and composition
Internal control and financial reporting systems Review and update of Board and Board Committee
Review of auditor’s audit and non-audit services succession planning
performance, fees, terms of engagement and Evaluation of potential Board and Board Committee
auditor’s independence candidates
Board
Finance and
Investment 72% Remuneration 100%
Committee NED/INEDs Committee INEDs
Key duties: Key duties:
Oversight of capital management matters Setting Link’s remuneration policy and strategy
Approval and monitoring of capital expenditure Approval of remuneration of senior management
Approval of larger asset enhancement projects and recommending the remuneration of
Directors for Board approval
Financing decisions and review of asset disposals
and acquisitions Administering the grant and vesting of awards
under the Long-term Incentive Scheme
Chairman
1. Nicholas Charles ALLEN (INED) • Leading the Board and ensuring its effectiveness
• Maintaining corporate reputation and character
• Developing and leading strategic issues and corporate governance
• Undertaking performance assessment of the CEO
NED/INEDs
2. Ian Keith GRIFFITHS (NED) • Overseeing Link’s affairs through serving on the Board and
Board Committees
3. Christopher John BROOKE (INED)(1) • Addressing potential conflicts of interests
4. Ed CHAN Yiu Cheong (INED) • Assessing management’s performance in respect of agreed
corporate g
oals and business objectives
5. Lincoln LEONG Kwok Kuen (INED)(2)
• Monitoring compliance and financial reporting
6. Blair Chilton PICKERELL (INED) • Input into development of strategy
• Overseeing risk management and internal control
7. Poh Lee TAN (INED)
• Approving Link’s statement of principal risks and its risk appetite
8. May Siew Boi TAN (INED) • Scrutinising and challenging management’s proposals and initiatives
9. Peter TSE Pak Wing (INED) • Reviewing remuneration policy and approving Directors’ remuneration
• Reviewing staff leadership, training and development
10. Nancy TSE Sau Ling (INED)
11. Elaine Carole YOUNG (INED)
CEO and ED
12. George Kwok Lung HONGCHOY • Developing, driving and delivering performance against business
plans agreed by the Board
• Working together with the Board to develop the business strategy of Link
• Supervising management team to ensure that Link is being operated
in accordance with stated strategies, policies and regulations
• Driving organic and inorganic growth and business development
• Developing relationships with Government, regulators and investors
CFO and ED
13. NG Kok Siong • Supporting the CEO in supervising the following functions:
financial control and reporting
capital management
risk management
business analytics
business and information technology solutions
quantity surveying
• Assisting the CEO in meeting investors and analysts to explain
performance and operational results
• Regional Head of the Mainland China region
CSO(3)
Eric YAU Siu Kei • Supporting the CEO on investor relationship and stakeholder
communication matters
• Assisting the CEO to develop, communicate, execute and sustain
corporate strategic initiatives
• Assisting the CEO in investors and analysts meetings to explain
Link’s results and performance
• Overseeing all functions covering external affairs, stakeholder
management and corporate strategic initiatives, including
corporate affairs and marketing, investor relations, s
ustainability and
ESG, as well as corporate finance
• Regional Head of the Australia and the United Kingdom regions
CLO(3)
Kenneth Tai Lun WONG • Supporting the CEO in overseeing the legal, company s
ecretariat and
compliance functions of Link
• Assisting the CEO in communications with regulatory authorities and
the Trustee
• Reviewing and implementing corporate governance practices
• Providing advice and support to the Board and keeping the B
oard
updated on regulatory and compliance issues
• Named company secretary
Notes:
(1) Mr Christopher John BROOKE was appointed as a member of the Remuneration Committee with effect from 18 March 2021
(2) Mr Lincoln LEONG Kwok Kuen was appointed as an INED and a member of the Audit and Risk Management Committee with effect from 1 March 2021
(3) Senior management, not a Board member
Board Diversity
We believe a balanced and diverse Board brings a broad range of views to bear upon discussions and critical
decision-making, and mitigates against the potential for “group think”. The Board Diversity Policy of Link is multi-
faceted stressing business experience, skill-set, knowledge and professional expertise in addition to gender,
ethnicity and age.
We see the importance of Board diversity as a contributor to Board effectiveness and the long-term success of
Link. The Board Diversity Policy of Link sets clear objectives for the Board in its review of its composition. Board
appointments are made on merit taking into account the business objectives of Link and with regard to all aspects
of diversity including (without limitation) background, ethnicity, age and gender. The Board evolves as Link does
over time; given that INEDs serve a maximum of nine years, the Board is continuously refreshed, bringing new skills
and perspectives, supporting Link as it expands its business footprint. The Nomination Committee and the Board
regularly review the Board Diversity Policy of Link to closely reflect industry and investors’ expectations.
In accordance with its annual practice of monitoring progress towards diversity, the Nomination Committee reviewed
the Board Diversity Policy of Link and was satisfied that the diversity of the Board was appropriate.
Notes:
(1) 13 members as of 17 June 2021 against 12 members as of 1 June 2020
(2) Appointed with effect from 1 March 2021
May TAN
Attendees Banking/accounting/
risk management and compliance
CEO
Business perspective Lincoln LEONG
Commercial/finance/real estate
CFO
Financial perspective
Ed CHAN
Retail
ED Expertise
Elaine YOUNG
Property investment/retail
Nomination Committee
INED Expertise
Board performance evaluation process
New director nomination Nicholas ALLEN (chairman)
Succession planning Listed companies and
governance experience
Board diversity and
corporate governance May TAN
Listed companies governance/
MNC experience
ED Expertise
INED Expertise
CEO
Knowledge of Link’s existing and Blair PICKERELL
future talent requirements International business and
MNC experience
Remuneration Committee
INED Expertise
Remuneration of the EDs and
senior management
Blair PICKERELL (chairman)
Remuneration and human International business/
capital policies MNC experience
Monitoring of compliance
May TAN
MNC/listed companies and
capital markets experience
Attendees
Corporate strategic
decisions, business
plans, challenges
Leadership and People and growth, ESG and Accountability
sustainability and
Leadership planning, public affairs Board evaluation and
succession planning, Board effectiveness review,
size, structure, composition, Board Committee reports and
diversity and independence of minutes review and regular
INEDs, Board committee communication with
functions, Directors’ fees and the Unitholders and other
development and stakeholders
compensation of the senior
management
Business and
A Strong
Governance and Financial Performance,
Board Process Reporting and Disclosure
Compliance
Business and financial
Regulatory compliance review, performance review, interim
operational compliance and final results review, annual
review, connected transaction budget review, interim and
compliance review and key final distribution payment
corporate governance to Unitholders and capital
development updates management and auditor’s
fees review
Annual strategic review • A full-day Board strategy retreat held each year where Directors review, discuss and
set Link’s strategy. Business leaders and industry experts are invited to present on
specific topics
• In the lead up to the 2020 Board Strategy retreat, a series of preparatory workshops
were held with the Board and staff of various grades across the organisation in order
to promulgate ideas and coalesce thinking in support of discussion and decision
making on the day. At the Strategy retreat itself, the Board re-iterated its support of
Vision 2025
Agenda, meeting and • Arrangements are in place to ensure Directors receive notice, agenda and
supporting materials meeting materials on time in order that they may prepare for meetings
• Agenda and meeting papers are uploaded to a private and secure electronic
platform at least five working days in advance of meetings for regular meetings
and at a time as agreed for ad hoc meetings
• Board agenda items are reviewed by the Chairman/CEO
• Standing agenda items are set to ensure that critical matters such as financial
reporting, project progress, internal control and risk management, and
compliance issues are addressed at regular Board and Board Committee
meetings
Alerts and management • The company secretary alerts Directors in advance of the commencement of the
of inside information interim or final results “black-out”, other ad hoc “black-outs” and where there is
potential inside information, in accordance with the Link Securities Dealing Code
• The company secretary maintains records of meetings and discussions of the
management, the Board and/or Board Committee concerning the assessment
of inside information, keeps a register of inside information and updates the
Directors on a regular basis
Electronic and paperless • Board meeting papers and supporting materials are circulated to Directors
meetings through a private and secure electronic platform. This enables timely distribution
of information to Directors, immediate online reference and interactive exchange
of views among Directors
• Monthly business updates, reading materials, and other information are also
sent to all Directors through this electronic platform
Meeting proceedings • Telephone and/or video conference participation is arranged for any Director
who is unable to attend a meeting in person and was utilised frequently during
the financial year to ensure that Directors were able to attend meetings without
hinderance
• The Board has adopted the practice of holding pre-meetings as appropriate at which
management solicit views from Board members on certain agenda items and topics
so as to provide for a richer discussion in meeting
• The company secretary keeps a full record of meeting attendance
• Senior representatives from the Principal Valuer and the external auditor of Link
are invited to attend the Audit and Risk Management Committee meetings and
the Board meetings for approval of the portfolio valuation and the interim and
final results of Link
• Each year, the external auditor of Link holds a closed-session with the Audit and
Risk Management Committee members in the absence of management
• Management regularly attends Board and Board Committee meetings to
deliberate on proposals and present updates on operations. External speakers,
guests and consultants are invited to participate on specific topics
Minutes of meetings • The company secretary attends all Board/Board Committee meetings
of Board/Board • Draft minutes are circulated for comment as soon as practicable post meeting
Committees
• Minutes of each Board/Board Committee meeting are provided to all Directors
to keep them abreast of matters discussed and decisions made thereat
• All signed Board/Board Committee minutes and resolutions are kept by the
company secretary
• Papers and minutes upon review by the Chairman and chairmen of the relevant
Board Committees are uploaded to the private and secure electronic platform
for online reference by other Directors
Professional advice • All Directors are entitled to independent professional advice on issues relevant
to their function and duties, at the Manager’s expense. They have free and open
contact with all levels of the management team. The Chairman also meets and
has lunch and gatherings with management and staff to gain further insight into
their work
Regular reports and • The CEO, the CFO, the CSO and the CLO regularly report to the Board on
updates progress against business targets, ESG and sustainability, risk management and
internal control and other developments. Strategy update forms a standing item
for each scheduled meeting of the Board
• Board Committee chairmen report their decisions and recommendations at
Board meetings
• The Board receives monthly business updates and investor feedback through
briefings on interim results and final results roadshows
Three-year meeting • A three-year meeting calendar for meetings of the Board and the Board
calendar Committees as well as the annual general meeting is adopted allowing the NED/
INEDs to plan their schedules in advance
Induction program for new • A comprehensive and tailored induction program including site visits is provided
Directors to ensure any new Director is fully briefed the key operations and businesses of
Link
B
B ARMC
ARMC B FIC FIC
NC FIC B NC NC
2020 RC AGM BR ARMC RC RC
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FIC B ARMC FIC FIC 2021 FIC
RC FIC NC RC NC
RC
Current Directors
Nicholas Charles ALLEN 6/6(C) – 8/8(C) 5/5(C) – 1/1
George Kwok Lung HONGCHOY 6/6 – 8/8 5/5 – 1/1
NG Kok Siong 6/6 – 8/8 – – 0/1
Ian Keith GRIFFITHS 6/6 – 8/8 – – 0/1
Christopher John BROOKE (1)
6/6 – 8/8 – 0/0 1/1
Ed CHAN Yiu Cheong 6/6 – 8/8 – 7/7 0/1
Lincoln LEONG Kwok Kuen(2) 1/1 1/1 – – – –
Blair Chilton PICKERELL 6/6 – – 5/5 7/7(C) 1/1
Poh Lee TAN 6/6 4/4 – – – 1/1
May Siew Boi TAN 6/6 4/4 – 5/5 7/7 1/1
Peter TSE Pak Wing 6/6 4/4(C) – – – 1/1
Nancy TSE Sau Ling 6/6 4/4 – – – 1/1
Elaine Carole YOUNG 6/6 – 8/8 – 7/7 1/1
In attendance
Company secretary 6/6 4/4 8/8 5/5 7/7 1/1
External auditor 2/2 2/2 – – – 1/1
Heads of internal audit and – 4/4 – – – –
risk management
Principal Valuer 2/2 2/2 – – – –
Approximate average duration per 3.7(5) 3.6 2.2 2.8 2.7 0.3
meeting (hour)
The Chairman, the chairmen of Board Committees, the CEO along with other of the Directors as shown above
attended the 2020 AGM to meet with and answer questions from Unitholders. At the 2020 AGM, the CEO reported
on matters raised by and comments from Unitholders at the prior-year’s annual general meeting.
During the year, Directors also participated actively in Link’s affairs outside the boardroom. This included community
events organised under the Link Together Initiatives programme and events sponsored by, or in which Link otherwise
participated. The Chairman attended meetings with key Unitholders with support of the CSO.
In accordance with the Articles, all newly-appointed Directors are subject to election by Unitholders at the first annual
general meeting of Link following his/her appointment. During the year under review, Mr Lincoln LEONG Kwok Kuen
was appointed as an INED and will be subject to retirement and election by Unitholders at the upcoming annual
general meeting of Link.
Further details on Mr Lincoln LEONG Kwok Kuen are set out in his biography section on page 63 of this report and
further information on the activities of the Nomination Committee during the year is provided on pages 42 to 44 of
this report.
Note:
Other professional development included attending or speaking at forums, visiting Link’s properties, and participating in seminars, conferences and
other briefings organised by other professional bodies, etc.
Board
(chaired by an INED and comprising a majority of INEDs)
Approval of the remuneration of the CEO and the CFO upon the recommendation of the
Remuneration Committee in private discussion in the absence of EDs and management
Approval of Directors’ fees upon the recommendation of the Remuneration Committee
Approval of the grant of Long-term Incentive Scheme awards to Directors upon the
recommendation of the Remuneration Committee
Remuneration Committee
(all INEDs)
Management
(EDs and senior management)
Structure of Remuneration
FY2020/2021
Senior Other
Types of remuneration and benefits NED and INEDs EDs management employees Further details
EUPP –
Notes:
(1) Directors’ fees are not payable to EDs.
(2) All Directors are covered by directors’ and officers’ liability insurance.
(3) Selected manager-grade or above employees may be granted Long-term Incentive Scheme awards upon EDs’ recommendation and Remuneration
Committee’s approval and such awards have performance-linked or tenure-based vesting conditions.
Directors’ fees • Base fees only and payable according • Review of fees by the Remuneration
(INEDs and NED only) to roles, responsibilities and time Committee and approval by the Board
commitment and benchmarked against on a yearly basis
market level of peer companies • Full review of fees with an independent
external consultant’s input every two to
three years
• Fee adjustment spread over three years
Long-term Incentive Scheme award • Based on a pre-set and fixed • Approval of grants by the Board
(INEDs and NED) percentage of their fees and vested on a • Approval of vesting by the Remuneration
tenure basis with no performance-linked Committee
target
Basic salary • Fixed-cash component of total • Review every year with the assistance of
(EDs and senior management) remuneration benchmarked against an independent external consultant by
comparable peers to recruit and retain the Remuneration Committee, and in the
key leaders and managers case of the CEO and the CFO, approval
by the Board
Discretionary cash bonus • Variable cash component of total • The aggregate total pool for all
(EDs and senior management) remuneration to drive and reward employees as well as EDs is reviewed
performance and approved by the Remuneration
• Discretionary nature depending on Committee, and in the case of the CEO
the achievement of financial and non- and the CFO, approved by the Board
financial KPIs measured against Link’s • Market survey benchmarking against
strategic objectives local and international peers, with the
• A significant portion of the discretionary support of an independent external
bonus for EDs and an appropriate consultant, every year
portion of the same for senior • Review every year by the Remuneration
management may be as appropriate, on Committee with the assistance of an
a deferred basis commensurate with the independent external consultant
progress in achieving such objectives,
which will be forfeited if the individual
resigns or is dismissed “for-cause”
during the deferral period
Long-term Incentive Scheme award • Unit-based component of total • Approval by the Remuneration
(EDs and senior management) remuneration to attract talent, incentivise Committee on grants and KPI targets to
performance and retain key personnel senior management and key performing
for achieving the strategic goals of Link employees
• Discretionary in nature and subject • Approval by the Board on grants
to a three-year vesting period. to the CEO and the CFO (upon
Performance-linked Units are recommendation of the Remuneration
subject to the satisfaction of vesting Committee)
conditions which are calibrated against • Remuneration Committee to approve
business performance as measured vesting on satisfaction of relevant KPIs
by a composite of target parameters with advice from the external auditor
including distribution per Unit, gross
asset value and absolute total Unit
return to Unitholders. Tenure-based
Units do not have performance-linked
targets
• Vesting references Unit price of Link
over a period of consecutive trading
days after announcing financial results
Pension and other benefits • Providing employment benefits in compliance with statutory requirements
• Providing other benefits in line with market practices, such as:
– annual leave, maternity/paternity leave and birthday leave
– medical insurance, life and personal accident insurance
– reimbursement of monthly subscription of clubs, reimbursement of professional
memberships and seminar course fees, and Link-sponsored learning and development
programmes
As stated in Note 32(d) to the Consolidated Financial Statements on pages 153 to 155 of this report, the following
sections with the heading “Audited” on pages 26 to 28 of this report form part of the Consolidated Financial
Statements and have been audited by the Group’s auditor.
FY2020/2021 FY2021/2022
In addition to a base fee according to the roles and responsibilities above, NED/INEDs are entitled to Long-term
Incentive Scheme awards valued at 70% of their individual total annualised fees. This Long-term Incentive Scheme
award is granted on a tenure basis with no performance-linked target.
Long-term
Short-term remuneration remuneration
Variable Long-term
Base salary, remuneration Incentive
allowance and Contribution to related to Scheme
Name other benefits(3) pension scheme performance(4) awards(5) Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Long-term
Short-term remuneration remuneration
Variable Long-term
Base salary, remuneration Incentive
allowance and Contribution to related to Scheme
Name other benefits(3) pension scheme performance(4) awards(5) Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Current Directors
George Kwok Lung HONGCHOY 10,192 18 25,500 35,833 71,543
NG Kok Siong (1)
7,514 18 10,000 7,700 25,232
Former Director
Andy CHEUNG Lee Ming(2) 4,606 18 – 8,500 13,124
Notes:
(1) Appointed as ED with effect from 1 February 2020. Out of the total remuneration of HK$25,232,000 awarded for the performance year 2019/2020,
only two months’ remuneration was attributable to services provided as an ED. Mr NG Kok Siong entered into a service agreement with the Manager
when he joined Link as CFO on 3 May 2018. Pursuant to the service agreement, Mr NG Kok Siong was granted HK$2,450,000 during both the
performance year 2019/2020 and performance year 2020/2021 as compensation for income loss as a result of forfeiture of certain awards granted
by Mr NG Kok Siong’s former employer on joining Link.
(2) Resigned as ED with effect from 2 October 2019 and continued to act as Chief Operating Officer until 20 December 2019. Only a portion of the total
remuneration (up to 2 October 2019) awarded for performance year 2019/2020 was attributable to services provided as an ED. As per 2017 LTI
Scheme rules, the LTI granted to Mr Andy CHEUNG Lee Ming (HK$8,500,000 for performance year 2019/2020) was lapsed.
(3) Other benefits include leave pay, insurance premiums and club membership fees.
(4) The variable remuneration is performance-related, subject to achievements against pre-determined financial and non-financial performance targets.
Included in the variable remuneration awarded for the performance year 2020/2021, amount of HK$17,494,699 and HK$11,663,133 will be paid to
Mr George Kwok Lung HONGCHOY in the year 2021/2022 and year 2022/2023 respectively, and amount of HK$7,614,990 and HK$5,076,660 will
be paid to Mr NG Kok Siong in the year 2021/2022 and year 2022/2023 respectively.
(5) Long-term Incentive Scheme award in terms of cash, performance units and/or restricted units are granted to key executives to reward them for
long-term business performance and success of Link, while also retaining them. Values of the Long-term Incentive Scheme awards are calculated
based on the target number of Units times the grant price as determined under the 2017 LTI Scheme, and do not represent the actual value of the
awards at the time of vesting. There is no commitment that the number of Units with the above target values will be vested. The eventual
amounts to be vested depends on achievement against certain financial targets, service related vesting conditions and future Unit prices. Details
on the Long-term Incentive Scheme are set out in the section headed ‘Long-term Incentive Schemes’ of this report. Details on the actual awards
vested or lapsed are set out on pages 75 to 81 of this report.
(6) The total remuneration is calculated based on the variable remuneration and the Long-term Incentive Scheme awards approved by the Board.
The actual paid variable remuneration for the respective years are set out in Note (4) above, and the details of the values of Long-term Incentive
Schemes recognised during the year are set out on pages 75 to 81 of this report.
2021 2020
Long-term Long-term
Incentive Incentive
Scheme Scheme
Name Fees provision(4) Total Fees provision(4) Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Current Directors
Nicholas Charles ALLEN 2,359 1,580 3,939 2,222 1,258 3,480
Ian Keith GRIFFITHS 714 479 1,193 664 384 1,048
Christopher John BROOKE 716 460 1,176 664 243 907
Ed CHAN Yiu Cheong 778 509 1,287 727 393 1,120
Lincoln LEONG Kwok Kuen (1)
66 – 66 – – –
Blair Chilton PICKERELL 802 520 1,322 749 400 1,149
Poh Lee TAN 780 523 1,303 733 418 1,151
May Siew Boi TAN 899 603 1,502 851 478 1,329
Peter TSE Pak Wing 845 568 1,413 792 462 1,254
Nancy TSE Sau Ling 780 523 1,303 733 418 1,151
Elaine Carole YOUNG 778 521 1,299 727 416 1,143
Former Directors
CHAN Chak Cheung William(2) – – – – 32 32
David Charles WATT(3) – – – – 25 25
Notes:
(1) Appointed on 1 March 2021
(2) Retired on 9 November 2017
(3) Retired on 13 August 2018
(4) These represent the estimated value of tenure-based restricted unit awards as valued by an independent external valuer, based on valuation
techniques and assumptions on Unit price, outstanding length of the awards and other market conditions, if appropriate and charged to the
consolidated income statement over the vesting period. The amounts are impacted by the time of appointment/retirement of the concerned
Director as well as movements in the Unit price, wherever applicable
External Auditor
The external auditor reports on any control issues identified in the course of its interim review and annual audit work
on Link’s financial and business results. Management has periodically engaged the external auditor of Link to review
and advise on the adequacy of Link’s internal control and risk management systems.
Conflicts of Interest
The Manager has instituted stringent internal procedures, including for compliance with the internal General
Guidelines on Declaration and Avoidance of Conflicts of Interest, to monitor and deal with conflict of interest issues.
In particular:
(i) Directors are required to report immediately and confirm periodically any changes in their directorships and
positions held in other companies and organisations to the Manager. The Manager maintains a register with
respect to such outside directorships and positions of the Directors and makes filings with the SFC in the
manner as required by the SFO. Management checks transactions against the register and performs periodic
and sample checking to detect and deal with potential connected party transactions in the manner as required
under the REIT Code.
(ii) Directors are required to declare their direct or indirect interests. A Director will not be counted in the quorum for
a transaction in which he/she is interested.
(iii) Unitholders cannot vote on (nor will they be counted in the quorum for) a transaction in which they have a
material interest which is different from the interest of other Unitholders as a whole.
(iv) The Manager does not manage any REITs other than Link.
(v) All connected party transactions are managed in accordance with the requirements of the REIT Code, the
procedures prescribed in the Compliance Manual and the conditions of the waivers granted by the SFC relevant
to the types of connected party transactions in question. Connected party transactions are subject to regular
monitoring by the Audit and Risk Management Committee and regular periodic review by the Trustee, the
internal audit team, Link’s external auditor, and also by the SFC upon inspection.
Distribution Policy
It is the distribution policy of the Manager to provide Unitholders with regular distribution semi-annually after the
Board approves the interim and full-year results of Link.
Under the REIT Code as well as the Trust Deed, Link is required to ensure that the total amount distributed to
Unitholders as distributions for each financial year is not less than 90% of Link’s total distributable income. Under
the Trust Deed, total distributable income is the consolidated profit of Link after taxation attributable to Unitholders
adjusted to eliminate the effects of certain non-cash adjustments which have been recorded in the consolidated
income statement of Link for the relevant financial period.
In exercising its discretions under the Trust Deed, the Manager has consistently distributed 100% (and when
justified, over 100%) of Link’s total distributable income as distribution to Unitholders.
Investor Relations
The Manager continually communicates with the investment community to ensure that analysts, retail and
institutional investors are sufficiently informed, and to gauge their views on the business objectives, activities and
future direction of Link. There are currently 17 equity research analysts actively covering Link. Since April 2020, the
Manager participated in the following events:
1,018 individuals 16 10
over 200 virtual meetings Investors’ conferences/ Post-results/
and conference calls corporate days non-deal roadshows
General Meetings
The Trust Deed requires that Link holds an annual general meeting of Unitholders once every year. The Trust Deed
and the REIT Code also require Link to hold other (or extraordinary) general meetings of Unitholders in circumstances
specified in the Trust Deed and the REIT Code.
• 2020 AGM
At the 2020 AGM held on 22 July 2020, Unitholders approved the re-election of Mr Peter TSE Pak Wing,
Ms Nancy TSE Sau Ling and Ms Elaine Carole YOUNG as INEDs as well as the election of Mr NG Kok Siong
as Executive Director, and the renewal of the Unit buy-back mandate. Amendments to the Trust Deed and
approved by Unitholders at the 2020 AGM are reported on page 34 of this report. The relevant poll vote results
announcement dated 22 July 2020 can be found on websites of Link and the Stock Exchange.
The Chairman (who is also chairman of the Finance and Investment Committee and the Nomination Committee),
the chairmen of the Audit and Risk Management Committee and the Remuneration Committee, other INEDs, the
CEO and the CSO, as well as Link’s external auditor attended the 2020 AGM to meet with and answer questions
from Unitholders.
• 2021 AGM
The 2021 AGM will be held on 30 July 2021. Notice and agenda are set out in the circular to Unitholders
accompanying this Annual Report 2020/2021.
Compliance Manual
On 1 June 2020, the Compliance Manual was updated to reflect the latest business practices and operations of Link
(including the Manager).
On 8 February 2021, the Compliance Manual was further updated to reflect the amendments to the REIT Code and
the Trust Deed.
Attended/ Attended/
Eligible Eligible
Members Independent to attend Invitees for relevant agenda items to attend
Notes:
(1) Joined as a member on 1 March 2021
(2) Senior representatives from Colliers and PwC attended meetings of the Audit and Risk Management Committee to discuss and review the portfolio
valuation and the interim and final results of Link
None of the members of this committee was a partner or a former partner of Link’s external auditor within two years
immediately before his/her appointment.
Work of the Audit and Risk Management Committee during the year and up to the date of
this Report
Appointment and • Reviewed the work scope, quality, fees and terms of engagement of the external
re-appointment/removal auditor and the audit and non-audit services provided by the external auditor
of external auditor, review • Assessed external auditor’s independence and based on its review and
of external auditor’s assessment, recommended to the Board on the re-appointment of the external
performance and audit and auditor of Link
non-audit service fees
Internal audit plan and • Reviewed the internal audit activities report on a quarterly basis, monitored and
audit work followed up on the implementation of recommended actions
• Approved the yearly internal audit plan for 2021/2022 and the four-year rolling
internal audit plan for 2021/2022 to 2024/2025 inclusive
• Reviewed and satisfied itself that the internal audit function was independent,
effective and adequately resourced in staffing and staff training
• Through the Audit and Risk Management Committee and its chairman,
discussed privately and from time-to-time with the Head of Internal Audit and
Head of Risk Management internal control and internal audit matters
Internal control and • Reviewed the effectiveness of Link’s internal control and risk management
risk management systems through the quarterly review of internal audit and risk management
reports
• Monitored risks specified on Link’s corporate risk register on an on-going basis
by identifying new risks, residual risks, COVID-19 related risks. Monitoring of
movement of risks and receiving management’s representations thereon.
Conducted regular deep dives into Link’s thematic key risks
• Endorsed the corporate risk register for yearly review and approval by the Board
• Discussed privately and from time-to-time, with the Head of Internal Audit and
Head of Risk Management, internal audit and risk management matters
• Considered the adequacy of resources, staff qualifications, experience, training
and budget of the finance and accounting functions of the Manager
• Reviewed the internal control guidelines and the risk monitoring framework for
Relevant Investments
• Reviewed the restructuring of the risk management department
• Reviewed whistle-blowing reports and anti-corruption matters and followed up as
appropriate
Compliance with the REIT • Reviewed the quarterly regulatory and operational compliance reports, and
Code, the Listing Rules, monitored compliance issues
and other regulatory
• Reviewed and monitored connected party transactions through quarterly reports
requirements:
submitted by the company secretary and half-yearly review, conducted by the
– connected party internal audit function and, ensured compliance with the requirements of the
transactions as within REIT Code and the conditions of the relevant SFC waivers
the requirements of the
• Reviewed disclosures in the corporate governance report, monitored the
relevant SFC waivers
compliance with the Listing Rules Corporate Governance Code, and endorsed
– provisions of the the going concern statement and the statement of compliance with the Listing
Compliance Manual Rules Corporate Governance Code for inclusion in the annual report and financial
(including the Link statements
Securities Dealing Code
• Reviewed Relevant Investments activities and controls and the corresponding
and the Link Corporate
disclosures in the annual report
Governance Policy) and
the code of conduct • Monitored compliance with the Compliance Manual (which sets out the Link
applicable to Directors Corporate Governance Policy and the Link Securities Dealing Code) through
quarterly reports submitted
– disclosures in the interim
and annual reports and • Reviewed and recommended for approval by the Board the updated Compliance
interim and final results Manual of the Manager to enhance the operational and compliance procedures
announcements
– other regulatory and
operational compliance
I would like to thank all the committee members for their dedication in discharging their duties.
Attended/ Attended/
Eligible Eligible
Members Independent to attend Invitees for relevant agenda items to attend
Work of the Finance and Investment Committee during the year and up to the date of this
Report
Investment, acquisition and • Discussed and evaluated various investment opportunities, the required rate
disposal of return as within the investment criteria approved by the Board and financing
plans for potential acquisitions
• Discussed and endorsed the acquisition of an office property known as
“The Cabot” located in London, the United Kingdom, and recommended the
financing plan regarding this acquisition for approval by the Board
• Discussed and endorsed the acquisition of 50% interest of a property known
as “七寶萬科廣場” (Qibao Vanke Plaza) located in Shanghai, the PRC, and
recommended the financing plan regarding this acquisition for approval by the
Board
• Discussed and endorsed the acquisition of a shopping mall known as “太陽新天
地購物中心“ (Happy Valley Shopping Mall) located in Guangzhou, the PRC, and
recommended the financing plan regarding this acquisition for approval by the
Board
Capital recycling decisions • Reviewed and recommended for approval by the Board the renewal of MTN
and financing matters programme and mandate for management to issue notes under the MTN
programme
• Discussed and endorsed a number of standby mandates to (i) buy back Units,
convertible bonds and US$ denominated bonds; and (ii) issue convertible bonds,
which provide management with the flexibility to execute capital management
efficiently, for approval by the Board
• Discussed and reviewed the analysis of various financing options
• Discussed and endorsed the distribution reinvestment scheme
Budget and forecasts • Reviewed and recommended for approval by the Board the five-year budget
summary
• Discussed and approved the budget for Link’s enterprise resource planning
system
Financing plans and • Reviewed regularly capital management reports and treasury reports
strategies and considered capital market conditions as regularly reported by capital
management team
• Reviewed and discussed the performance of bond investments made by Link
Asset enhancement and • Reviewed regularly the progress of existing asset enhancement projects;
placemaking evaluated performance of existing asset enhancement projects; and reviewed
other capital expenditure proposals
• Reviewed and discussed the placemaking pilot schemes
Relevant Investments • Reviewed, discussed and approved the scope of the relevant investments
mandate to management and execution arrangement
• Reviewed regularly the performance of Link’s relevant investments
I would like to thank all the committee members for their dedication in discharging their duties during the year.
Attended/ Attended/
Eligible Eligible
Members Independent to attend Invitees for relevant agenda items to attend
Work of the Nomination Committee during the year and up to the date of this Report
Appointment, • Reviewed and recommended for approval by the Board the appointment of
re-appointment and removal Mr Lincoln LEONG Kwok Kuen as an INED and a member of the Audit and Risk
of Directors, nomination Management Committee with effect from 1 March 2021 and recommended him
of Directors for re-election for election as Director at the 2021 AGM
by Unitholders at annual • Reviewed and endorsed to the Board for its approval the renewal of the terms of
general meeting appointment of Mr Christopher John BROOKE and Ms Poh Lee TAN (each as an
INED), for three years
• Endorsed to the Board for its approval the nomination of Mr Nicholas Charles
ALLEN, Mr Ian Keith GRIFFITHS, Ms Poh Lee TAN and Mr Christopher John
BROOKE for re-election as Directors at the forthcoming 2021 AGM having
considered their respective contributions, skills and experience, and expertise as
well as assessing their independence, as applicable
Board diversity • Reviewed the Board Diversity Policy of Link and regularly monitored its
application
Composition of the Board • Reviewed the composition, size and structure, future skills requirements and
and Board Committees as membership of the Board and Board Committees by (i) taking into account the
within the Link Corporate expertise, time commitment, skills and experience of the members; (ii) the Board
Governance Policy Diversity Policy of Link; and (iii) taking into consideration the Link Corporate
Governance Policy and the Listing Rules Corporate Governance Code
• Reviewed and recommended to the Board the appointment of Mr Christopher
John BROOKE as a member of the Remuneration Committee with effect from
18 March 2021
Succession planning • Reviewed and updated three-year succession planning considering the skills
and talent required of the Board, Directors’ retirement, future development of
Link and Link’s Vision 2025
• Identified INED candidates with the assistance of and advice from an
independent external consultant
• Maintained and regularly reviewed a running list of potential INED candidates
against selection criteria developed as part of the Board succession planning
process
• Considered succession planning arrangements for senior positions across the
organisation
• Reviewed management’s capability and capacity to deliver Vision 2025
Board performance • Carried out an internal Board performance evaluation taking into account the
evaluation recommendations identified by the independent external consultant in the prior
year’s external evaluation (please refer to the ‘On-going Board Performance
Evaluation’ section on page 21 of this report for details)
• Reviewed Directors’ time commitment through, among others, monitoring their
meeting attendance for the year and number of outside directorships they held
• Reviewed training and continuous professional development undertaken by each
Director in the year
Assisted the Board in • Assessed the independence of each of the INEDs, and the time required from
ensuring compliance the NED and INEDs (including any prospective Directors) to fulfil their fiduciary
with the Link Corporate duties of overseeing Link’s business and serving the Board and its committees
Governance Policy and
practices
I would like to thank all the committee members for the dedicated efforts they put in during the year.
Attended/ Attended/
Eligible Eligible
Members Independent to attend Invitees for relevant agenda items to attend
Note:
(1) Joined as a member on 18 March 2021
Work of the Remuneration Committee during the year and up to the date of this Report
An independent external consultant is engaged to assist the Remuneration Committee in discussing and reviewing
executive compensation by providing market data, industry analysis and executive remuneration advice.
During the year under review, the Remuneration Committee has engaged Aon, an independent external consultant,
to review and make recommendations for the enhancement of Link’s Executive Compensation Framework with
an aim of ensuring that the EDs and senior management are competitively rewarded, taking into account, among
other things, Link’s long-term value creation. The consultant put forth a framework which made reference to the
best practices adopted by relevant peer companies. The Framework included an appropriate pay mix composing
of fixed pay, variable short-term incentive and long-term incentive to reward the executives for their achievements
against the annual and long-term performance results, as well as to closely align their remuneration to the long-term
success of the Company.
The Chairman attends relevant sessions of the Remuneration Committee meetings to provide his input on
the performance of the CEO, and the CEO presents his performance assessment of the CFO and other senior
management to assist the Remuneration Committee to review their remuneration packages. Director – Human
Resources regularly attends Remuneration Committee meetings to brief members on market pay trends, talent
development and training and other employment matters related to senior management.
The Remuneration Committee is the administrator of the Long-term Incentive Scheme. It recommends the grant
of awards to the CEO, the CFO and other Directors for approval by the Board. It determines the grant of awards to
senior management including the CSO and the CLO. It also determines the performance conditions and the vesting
of the Long-term Incentive Schemes awards.
Each Director abstains when voting on his/her own remuneration.
Remuneration strategy • Reviewed and developed, with the assistance of an independent external consultant
and policies for senior (being Aon), the executive compensation framework, policy and structure for EDs and
management and staff senior management
• Reviewed, with the assistance of Aon, market development and practices in executive
remuneration and corporate governance
• Reviewed the general market pay trends and endorsed the budgets for performance
bonus and long-term incentives for all staff
Remuneration packages • Reviewed and recommended (with the assistance of Aon) to the Board for approval of
of NED, EDs and senior the remuneration packages of the NED
management • Reviewed and recommended (with the assistance of Aon) to the Board for approval of
the remuneration packages of the CEO (with input from the Chairman) and the CFO
(with input from the CEO)
• Reviewed and determined the remuneration packages of the senior management
team, including the CSO and the CLO (with input from the CEO)
Review of Long-term • Performed review of the overall plan design of the Long-term Incentive Scheme, with
Incentive Scheme the assistance of Aon
• Developed performance conditions and target setting approach for Long-term
Incentive Scheme awards, with the assistance of Aon
Grant and vesting of • Reviewed and recommended for approval by the Board the proposed grant of Awards
Long-term Incentive under the 2017 LTI Scheme to the CEO, the CFO and other senior management
Scheme awards in favour • Approved the grant of Awards to members of the senior management team and
of Directors and senior certain other key staff under the 2017 LTI Scheme in the year
management under the
• Reviewed and determined the vesting results of Awards vested under the 2017 LTI
Long-term Incentive
Scheme in the year
Schemes
Hiring and separation of • Reviewed and determined the remuneration package of senior management hired in
senior management the year
• Reviewed and determined the termination provisions for senior management
separated in the year
Training and continuous • Reviewed the leadership training and development plans submitted by Director –
professional development Human Resources
of senior management • Discussed training and continuous professional development of senior management
I would like to thank all the committee members for their dedicated efforts.
Regulatory Framework
Link is a collective investment scheme authorised by the SFC under section 104 of the SFO. It is also a constituent
of the Hang Seng Index and its Units are listed on the Stock Exchange. Link Asset Management Limited is the
Manager. HSBC Institutional Trust Services (Asia) Limited is the Trustee.
• The Manager
The Manager is licensed by the SFC under section 116 of the SFO to conduct the regulated activity of asset
management, and manages Link in the interest of the Unitholders. The Manager is wholly owned by the
Trustee and charges management fee on a cost recovery basis. The Manager does not charge any acquisition/
divestment fee, or fee based on a percentage of assets under management or other performance-related
indicia. This minimises conflict and aligns with the interest of the Unitholders.
• The Trustee
The Trustee is a registered trust company for collective investment schemes under the SFO and the REIT Code,
holding all the Link’s assets in trust for and in the sole interest of all Unitholders. The Trustee and the Manager
operate independently.
The respective rights and obligations of the Manager and the Trustee are governed by the Trust Deed. The Trustee
carries out periodic reviews on the Manager, in addition to the reviews performed by the internal auditor and external
auditor. The Trustee’s Report is set out on page 92 of this report.
The activities of the Manager and Link are regulated by the SFC pursuant to the REIT Code and the SFO. The
business of Link and activities of the Manager are subject to inspection from time-to-time by the SFC.
During the year ended 31 March 2021, the Manager managed Link, in all material aspects, in accordance with the
provisions of the Trust Deed and the Compliance Manual.
The names of the four responsible officers of the Manager for the purposes of the SFO appear in the ‘Corporate
Information’ section of this report.
Corporate Structure
UNITHOLDERS
TRUSTEE
HSBC Institutional Trust Services (Asia) Limited
100% 100%
Management
MANAGER services
The Link Holdings Limited(2)
Link Asset Management Limited(1)
Manager’s
fee
100% 100%
100% PRC Headquarters 60%(3) Hong Kong Property
Property Management Hong Kong JV Property Investments
領展房地產諮詢 (上海) 有限公司
Link Property Management Investment • Link Properties Limited
(Link Real Estate Consultancy • Great Land (HK) Limited
Services Limited (Shanghai) Co., Limited) Century Land Investment Limited
• Link Monte (HK) Limited
100%
100% Financing
China Property Investments • Link CB Limited(5)
The Link (PRC) Holdings • The Link Finance Limited
Limited • The Link Finance (Cayman)
2009 Limited
50%(4) 100%
China JV Property Australia & UK Property
Investment Investment(6)
The Link (PRC) Holdings Link (International) Holdings
Limited Limited
100%
Investment
The Link Finance (Cayman)
2006 Limited
Notes:
(1) Type 9 licensed entity under the SFO.
(2) The Link Holdings Limited is the holding company of all SPVs of Link, and Link’s principal subsidiaries as at 31 March 2021 are set out in Note 34
to the consolidated financial statements. The Trustee is the sole owner, on behalf of all Unitholders, of both the Manager and The Link Holdings
Limited, which holds all of the Link’s assets. The Units represent stapled interest in these two companies.
(3) 40% interest is held by Nan Fung Development Limited.
(4) The acquisition of a 50% equity interest in a joint venture company which holds the property known as “七寶萬科廣場” (Qibao Vanke Plaza) in
Shanghai, the PRC was completed on 2 April 2021. The remaining 50% equity interest is held by an independent third party, 99% of which is held
by a limited liability partnership. For details, please refer to our announcement dated 24 February 2021.
(5) Formerly known as Link 2019 CB Limited.
(6) Completed the acquisition of an office property known as “The Cabot” in London, United Kingdom on 25 August 2020.
• Mr Christopher John BROOKE was appointed as a member of the Remuneration Committee of the Manager with
effect from 18 March 2021.
• Mr Nicholas Charles ALLEN was appointed as an independent non-executive director of Hong Kong Exchanges
and Clearing Limited (which is listed on the Main Board of the Stock Exchange) with effect from 28 April 2021.
• Mr Ed CHAN Yiu Cheong retired as an independent non-executive director of Yum China Holdings, Inc. (which is
listed on the New York Stock Exchange and the Main Board of the Stock Exchange) with effect from 28 May 2021.
Biographies of our Directors are set out on pages 60 to 66 of this report and can be viewed on Link’s corporate
website: Linkreit.com.
Information to Unitholders
Right to Appoint, Remove and Re-appoint Directors
By the Board
The Trust Deed provides that the Board may (on the recommendation of the Nomination Committee):
• at any time appoint any person who is willing to act as a Director, either to fill a casual vacancy or (subject to the
maximum number of 14 Board members) as an additional Board member; and
• remove any Director, and in such case, the Board shall give the incumbent Director notice to that effect signed by
all the other Directors.
A Director shall abstain from voting in respect of his/her own re-appointment.
By the Unitholders
The Trust Deed provides that Unitholders may appoint, re-appoint or remove any Director by an ordinary resolution:
• two or more registered Unitholders holding together not less than 10% of the Units in issue may serve written
request to the Manager which shall convene a meeting of Unitholders to consider the proposed ordinary
resolution to appoint, re-appoint or remove a Director; and
• if the proposed resolution is supported by a recommendation of the Nomination Committee, the effective quorum
for the relevant Unitholders’ meeting shall be two (or more) registered Unitholders holding together not less than
10% of the Units in issue; otherwise, the effective quorum for the relevant Unitholders’ meeting shall be two (or
more) registered Unitholders holding together not less than 25% of the Units in issue.
Subject to the passing of such ordinary resolution, the Trustee and the Manager shall take all necessary actions to
give effect to such appointment, re-appointment or removal of Director.
Retirement by Articles
The Articles require that:
• any Director so appointed by the Board shall retire but be eligible for re-election at the next following annual
general meeting (with such Director not being taken into account in determining the number of Directors subject
to retirement by rotation at such annual general meeting);
• EDs shall not be subject to retirement by rotation at annual general meeting; and
• one-third of the NED/INEDs shall be subject to retirement by rotation (but are eligible for re-election) at each
annual general meeting.
The Link Corporate Governance Policy further requires one-third of the INEDs to retire by rotation at each annual
general meeting.
Approximate
Purchase price per Unit aggregate
Number of Units consideration
Month bought back Highest Lowest (excluding expenses)
HK$ HK$ HK$’M
2020
September 6,000,000 65.45 60.95 378.7
All the Units bought back were cancelled prior to the end of the year under review. All Unit buy-backs by the Manager
during the year under review were carried out pursuant to the general mandate to buy back Units granted by the
Unitholders and were made in the interest of Link and the Unitholders as a whole. The average cost (excluding
expenses) of the Units bought back was approximately HK$63.11 per Unit.
Save as disclosed above, neither the Manager nor any of Link’s subsidiaries bought back, sold or redeemed any of
Units during the year under review.
Link intended to use the net proceeds (after deduction of fees, commissions and other related expenses) of
approximately HK$3,974,000,000 from the issue of the Convertible Bonds to refinance or fund, in whole or in
part, existing and future eligible green projects selected in accordance with certain prescribed eligibility criteria as
prescribed under and for general corporate purposes that fit Link’s green finance framework. The net proceeds were
used to refinance or fund Link’s eligible green projects and general corporate purposes that fit its green finance
framework which received second opinion by Sustainalytics and the Hong Kong Quality Assurance Agency.
As of the date of this report, no conversion of the Convertible Bonds had been exercised by any holders of the
Convertible Bonds and no redemption of the Convertible Bonds was made by Link CB Limited.
For details of the Convertible Bonds issue, please refer to the announcements dated 7 March, 8 March and 3 April
2019 issued by Link.
Unitholders Statistics
An analysis of the registered Unitholders as at 31 March 2021 according to the register of Unitholders of Link was as
follows:
Number of Aggregate
registered number of
Range of unitholdings Unitholders Units held Percentage
%
HKSCC Nominees Limited (through which most holders hold their Units) remained as the single largest registered
Unitholder, holding 2,001,972,038 Units (approximately 96.16%) as at 31 March 2021.
Based on the closing price of HK$70.8 per Unit and 2,081,862,866 Units then in issue, the market capitalisation
of Link as at 31 March 2021 was approximately HK$147.4 billion. Further details are set out in Note 27 to the
consolidated financial statements.
Public Float
Based on the information publicly available to the Manager, Link continues to meet the required public float of no
less than 25% of its issued Units in public hands.
As at the date of this report, Link does not have any controlling nor substantial unitholder (has the meaning of
“substantial holder” under 8.1 of Chapter 8 of the REIT Code, i.e. entitled to exercise, or control the exercise of, 10%
or more of the voting power at any general meeting of Link or any of its subsidiaries) (“Substantial Unitholder(s)”).
Directors of Subsidiaries
Directors of the Manager
The names of the current Directors of the Manager appear in the ‘Corporate Information’ section of this report. During
the year under review, Mr Lincoln LEONG Kwok Kuen was appointed as a Director.
During the year under review, no Director was interested in any business which competes or is likely to compete in
any material respect with Link.
As at 31 March 2021, Link’s portfolio comprised 134 assets (including 127 investment properties in Hong Kong, five
investment properties in Mainland China, one investment property in Australia and one investment property in the
United Kingdom). A list and relevant details of those properties can be found on pages 167 to 206 of this report.
Subsequent to the financial year end, Link acquired a property known as “太陽新天地購物中心” (Happy Valley
Shopping Mall) in Guangzhou, the PRC at a consideration of approximately RMB2,099 million on 4 June 2021 (details
of which were disclosed in the announcement dated 4 June 2021 issued by Link).
Relevant Investments
The Relevant Investments made by Link as of 31 March 2021 are set out below:
CHJMAO 6.75 04/15/21 SGX USD BBB– Baa3 BBB– 22,647 21,409 0.01
YUEXIU 4.875 04/19/21 HKEx USD – Baa3 BBB– 23,345 22,575 0.01
YXREIT 4.75 04/27/21 HKEx USD BBB– Baa3 – 124,171 120,412 0.06
COGO 4.875 06/01/21 HKEx USD BBB– Baa2 BBB 11,064 10,733 0.005
HRINTH 3.25 06/03/21 HKEx USD BBB+ – A 27,575 27,286 0.01
CHINAM Float 07/16/21 HKEx USD BBB+ Baa1 – 39,445 38,880 0.02
CHALHK 4.875 09/07/21 HKEx USD – – A– 18,537 18,057 0.01
HRINTH 3.625 11/22/21 HKEx USD BBB+ – A 63,401 63,421 0.03
BCLMHK 4 01/22/22 HKEx USD A– – A 12,530 12,482 0.01
CHJMAO 3.6 03/03/22 HKEx USD BBB– Baa3 BBB– 92,931 92,756 0.04
SINOCE 5.25 04/30/22 HKEx USD – Baa3 BBB– 39,016 38,644 0.02
CICCHK 3.375 05/03/22 HKEx USD BBB – BBB+ 47,067 47,649 0.02
CICCHK Float 05/03/22 HKEx USD BBB – BBB+ 80,349 79,250 0.04
CATIC 3.5 05/31/22 HKEx USD – Baa1 A– 47,082 47,577 0.02
LNGFOR 3.875 07/13/22 SGX USD – – BBB 59,229 59,255 0.03
HAOHUA 3.5 07/19/22 SGX USD BBB – A– 94,314 95,221 0.05
CJIANT 3.375 07/25/22 HKEx USD – – A+ 156,185 159,352 0.08
CHIOLI 3.95 11/15/22 HKEx USD BBB+ Baa1 – 24,048 24,319 0.01
YUEXIU 4.5 01/24/23 HKEx USD – Baa3 BBB– 47,297 47,936 0.02
POLYRE 3.95 02/05/23 HKEx USD BBB– Baa3 BBB+ 266,371 273,557 0.13
HAOHUA 4.625 03/14/23 SGX USD BBB – A– 65,204 65,374 0.03
VNKRLE 4.15 04/18/23 HKEx USD BBB Baa2 BBB+ 80,310 81,999 0.04
VNKRLE Float 05/25/23 HKEx USD BBB Baa2 BBB+ 7,853 7,798 0.004
PINGIN 4.375 09/10/23 SGX USD – Baa2 – 65,035 66,531 0.03
POLYRE 4.75 09/17/23 HKEx USD BBB– Baa3 BBB+ 47,203 48,125 0.02
YUEXIU 5.375 10/19/23 HKEx USD – Baa3 BBB– 90,771 92,568 0.04
HYNMTR 4.3 02/01/24 FRA USD BBB+ Baa1 – 204,052 211,473 0.10
VNKRLE 5.35 03/11/24 HKEx USD BBB Baa2 BBB+ 64,328 66,338 0.03
CHIOLI 5.95 05/08/24 HKEx USD BBB+ Baa1 A– 17,426 17,648 0.01
CCBL 3.5 05/16/24 HKEx USD A – A 156,630 165,684 0.08
SHGANG 4 05/23/24 SGX USD – – A– 94,278 99,376 0.05
YXREIT 3.6 05/28/24 Unlisted HKD – Baa3 – 30,000 30,877 0.01
HRINTH 3.75 05/29/24 HKEx USD – Baa1 A 39,421 40,813 0.02
VNKRLE 4.2 06/07/24 HKEx USD BBB Baa2 BBB+ 38,914 40,740 0.02
HAOHUA 3.375 06/19/24 SGX USD – Baa2 A– 39,863 40,365 0.02
CHJMAO 4 06/21/24 HKEx USD BBB– – – 53,159 53,891 0.03
WB 3.5 07/05/24 HKEx USD BBB Baa2 – 39,923 41,029 0.02
CNBG 3.375 07/16/24 HKEx USD BBB – A– 127,189 129,581 0.06
JOHNEL 4.125 07/30/24 HKEx USD BBB Baa1 – 41,682 43,034 0.02
HRINTH 3.25 11/13/24 HKEx USD – Baa1 A 156,140 162,196 0.08
Note:
(1) “Gross asset value” is calculated by reference to the latest published accounts of Link as adjusted for any distribution declared and change in
valuation (if any) subsequent to the publication of the accounts. “Percentage of gross asset value” is calculated based on the mark-to-market value
of the Relevant Investments.
Based on the above, the portfolio of Relevant Investments represented approximately 1.35% of the gross asset value
of Link as of 31 March 2021 (after adjusting for the final distribution declared). The combined value of the Relevant
Investments together with other investments of types referred to in 7.2C of the REIT Code represented approximately
4.6% of the gross asset value of Link as of 31 March 2021 (after adjusting for the final distribution declared), and
therefore is within the Maximum Cap.
The full investment portfolio of Relevant Investments is updated monthly within five business days of the end of each
calendar month on Link’s corporate website: linkreit.com.
Commission/ Percentage of
Name Nature of services advisory fees paid relevant costs
HK$’M %
Major Contractors
During the year under review, the value of service contracts of the top five contractors engaged by Link and their
respective services rendered are as follows:
Value of Percentage of
Name Nature of services services paid relevant costs
HK$’M %
Management Team
Mr George Kwok Lung HONGCHOY Mr Kenneth Tai Lun WONG
Executive Director & Chief Executive Officer Chief Legal Officer & Company Secretary
Mr WONG, aged 51, oversees the legal, company
Mr NG Kok Siong secretariat and compliance functions of Link. He joined
Executive Director & Chief Financial Officer the Manager in August 2019 and is a director of a
number of subsidiaries of Link. Mr WONG has more
Senior Management than 27 years of legal and management experience
focusing on corporate finance, mergers and acquisitions
Mr Eric YAU Siu Kei and corporate development. Prior to joining Link, he
held various senior executive positions within HNA
Chief Strategy Officer Group including the General Counsel of HNA Group
Mr YAU, aged 47, oversees the development, (International) Company Limited, an executive director
communication, execution and sustainment of corporate of Hong Kong International Construction Investment
strategic initiatives as well as all functions covering Management Group Co., Limited and a director of Hilton
external affairs and stakeholder management, including Grand Vacations Inc. Prior to that, he co-founded a
corporate affairs and marketing, investor relations, solicitors’ firm in Hong Kong which eventually merged
sustainability and corporate finance. He is one of the with the international law firm of Nixon Peabody LLP to
responsible officers of the Manager for the purposes become Nixon Peabody CWL and had served as the
of the SFO and a director of a number of subsidiaries managing partner of the firm for 14 years. In addition to
of Link. Mr YAU joined the Manager in November 2010 his legal career, Mr WONG has extensive entrepreneurial
initially with the investment team responsible for merger experience in the elderly healthcare and real estate
and acquisition, and the formulation of the corporate sectors. He owned and operated a chain of private
sustainability strategy. He became Head of Investor elderly homes in Hong Kong known as “Greenery Elderly
Relations and Corporate Finance in September 2015. Home” for 20 years until its divestment in 2014. He also
Prior to joining the Manager, Mr YAU worked as an had over 15 years of experience in developing village
investment banker and corporate manager in DBS Asia houses in the New Territories for his family business. Mr
Capital Limited, CLP Holdings Limited, UBS Investment WONG has been appointed by the Government of the
Bank and Jardine Fleming. He also serves as a member HKSAR as a member of the Elderly Commission since
of the Financial Treasury Service Committee of the Hong 2015. He was formerly a vice-chairman of the Friends
Kong General Chamber of Commerce, a board member of Caritas of Hong Kong, a member of the Board of
of the Hong Kong Chapter of Asia Pacific Real Estate Governors of Chu Hai College of Higher Education and
Association, a member of the General Committee an advisor to Heung Yee Kuk of the New Territories.
of The Chamber of Hong Kong Listed Companies, a Mr WONG holds a Bachelor of Laws degree from the
member of the Examination Committee of the Hong London School of Economics and Political Science of
Kong Securities and Investment Institute, and a member the University of London. He is a qualified solicitor in
of the Executive Committee of the Hong Kong Investor Hong Kong.
Relations Association. Mr YAU holds a Master degree in
Business Administration from Harvard Business School,
a Master of Arts degree from Harvard University, and a
Bachelor of Arts degree from Brown University.
Disclosure of Interests
Notes:
(1) The long position interests of BlackRock in 188,105,560 Units and short position interests in 257,659 Units were held through its various controlled
corporations. The interests shown in the above table included certain short position interests (197,394 underlying Units) in cash settled unlisted
derivatives.
(2) The long position interests of Citigroup were held through its various controlled corporations or in the capacity of approved lending agent. Such long
positions included derivative interests in 521,513 underlying Units of which 371,000 underlying Units in physically settled listed derivatives, 36,566
underlying Units in convertible instruments listed derivatives and 113,947 underlying Units in cash settled unlisted derivatives. The short position
interests were held through its various controlled corporations. Such short positions included derivative interests in 649,532 underlying Units of
which 191,000 underlying Units in physically settled listed derivatives, 73,132 underlying Units in convertible instruments listed derivatives and
385,400 underlying Units in cash settled unlisted derivatives.
(3) APG Asset Management N.V. is a wholly-owned subsidiary of APG Groep N.V. which itself is a non-wholly owned subsidiary of Stichting
Pensioenfonds ABP. Therefore, APG Asset Management N.V., APG Groep N.V. and Stichting Pensioenfonds ABP were interested or deemed to be
interested in the same batch of 113,471,409 Units as shown in the above table.
(4) The approximate percentages were calculated based on 2,081,862,866 Units in issue as at 31 March 2021 (rounded down to two decimal places).
Save as disclosed above, based on the disclosure of interests to the Stock Exchange and the Manager pursuant to
the provisions of Part XV of the SFO and the register kept by the Manager, there were no other persons having an
interest of 5% or more in the Units and/or underlying Units as at 31 March 2021.
Notes:
(1) Directors’ personal interests in Units as stated above were long position interests. There were no short position interests held by any Director.
(2) Directors’ interests in underlying Units as stated above were long position interests and represent the maximum number of Units which may be
vested with the Directors under the Long-term Incentive Scheme. Please refer to the ‘Long-term Incentive Scheme’ section on pages 75 to 81 of
this report for details.
(3) The approximate percentages were calculated based on 2,081,862,866 Units in issue as at 31 March 2021 (rounded down to four decimal places).
(4) The personal interest of Mr Nicholas Charles ALLEN in 63,750 Units was held in an account in joint names with his spouse.
Save as disclosed above and so far as the Manager is aware, none of the Directors or any of their respective
associates held any interests in Units (or, as the case may be, shares) or underlying Units (or, as the case may be,
underlying shares) or debentures of Link and/or its subsidiaries which were required to be disclosed pursuant to the
provisions of Part XV of the SFO as at 31 March 2021.
1. Interests in Units
Notes:
(1) The Trustee is a direct subsidiary of HSBC and hence HSBC and its subsidiaries are connected persons to Link. Save as disclosed in the
table above, certain associated companies of the Trustee were also interested in 1,679 Units as at 31 March 2021.
(2) Principal Financial Services, Inc. is an associate of a Director, Mr Blair Chilton PICKERELL. These interests were held through a mutual fund
which Principal Financial Services, Inc. had invested in.
(3) The approximate percentage was calculated based on 2,081,862,866 Units in issue as at 31 March 2021.
(4) As at 31 March 2021, Link did not have any Substantial Unitholders. The interests in Units held by the Directors as at 31 March 2021 are
disclosed in the ‘Interests of Directors in Units’ section above.
In addition, as at 31 March 2021, Mr Eric YAU Siu Kei (being a director of certain subsidiaries of Link), Mr Gary FOK Yip Sang (being a director
of certain subsidiaries of Link), Ms Phyllis NG Yuen Fan (being a director of certain subsidiaries of Link) and Mr Max WONG Hon Keung (being
a director of a subsidiary of Link), together with their respective associates (as defined in the REIT Code) were interested in 146,009, 131,644,
80,208 and 105,230 Units respectively.
2. Interests in Green Bond and/or Notes issued under the MTN Programme
(a) HK$589 million HKD-denominated notes due 2021 issued on 3 October 2011 at 3.3% coupon rate by
The Link Finance (Cayman) 2009 Limited, a subsidiary of Link
Note:
(1) The approximate percentage was calculated based on the total nominal amount of HK$589 million of the above-mentioned
HKD-denominated notes.
(b) HK$500 million HKD-denominated notes due 2027 issued on 28 June 2012 at 3.55% coupon rate by
The Link Finance (Cayman) 2009 Limited
Note:
(1) The approximate percentage was calculated based on the total nominal amount of HK$500 million of the above-mentioned
HKD-denominated notes.
(c) HK$500 million HKD-denominated notes due 2028 issued on 8 February 2013 at 3.1% coupon rate by
The Link Finance (Cayman) 2009 Limited
Note:
(1) The approximate percentage was calculated based on the total nominal amount of HK$500 million of the above-mentioned
HKD-denominated notes.
(d) US$500 million USD-denominated notes due 2024 issued on 3 September 2014 at 3.6% coupon rate
by The Link Finance (Cayman) 2009 Limited
Dah Sing Bank, Limited (“Dah Sing Bank”)(1) 20,734,000 4.15 20,734,000
HSBC and its subsidiaries 34,171,000 6.83 34,171,000
Notes:
(1) Dah Sing Bank is an associate of a Director, Mr Blair Chilton PICKERELL.
(2) The approximate percentage was calculated based on the total nominal amount of US$500 million of the above-mentioned
USD-denominated notes.
(e) HK$650 million HKD-denominated notes due 2022 issued on 10 February 2015 at 2.4% coupon rate
by The Link Finance (Cayman) 2009 Limited
Note:
(1) The approximate percentage was calculated based on the total nominal amount of HK$650 million of the above-mentioned
HKD-denominated notes.
(f) HK$740 million HKD-denominated notes due 2030 issued on 31 March 2015 at 3.0% coupon rate by
The Link Finance (Cayman) 2009 Limited
Note:
(1) The approximate percentage was calculated based on the total nominal amount of HK$740 million of the above-mentioned
HKD-denominated notes.
(g) US$500 million green bond due 2026 issued on 21 July 2016 at 2.875% coupon rate by The Link
Finance (Cayman) 2009 Limited (“Green Bond”)
Note:
(1) The approximate percentage was calculated based on the total nominal amount of US$500 million of the Green Bond.
Note:
(1) The approximate percentage was calculated based on the aggregate principal amount of HK$4 billion of the Convertible Bonds.
Participants Directors and key employees of the Manager, the Manager’s subsidiaries and SPVs
of Link
Limit for participants (other than INEDs/NED) 1% of Units in issue in any 12-month period
Limit for INEDs/NED 0.1% of Units in issue in any 12-month period for INED and NED
Vesting period Normally spreading over a period of three years, with 50% vesting on the second
anniversary and 50% on the third anniversary of date of grant
Conditional Cash Award Granted together with Restricted Unit Award and paid on vested Units only
Objectives
The objectives of the 2017 LTI Scheme are to:
(i) align the interests of the participants with the Unitholders as a whole with a view to creating value for Link and
the Unitholders;
(ii) enable the Manager to attract and retain talented management and key employees whose contributions are
essential to the achievement of the strategic goals and the long-term growth of Link; and
(iii) incentivise management and key employees of the Manager, the Manager’s subsidiaries and SPVs of Link
(“Link Entities”, and individually a “Link Entity”) through rewarding them in calibration of their contributions to
the business performance and success of Link.
Participants
Persons eligible to participate in the 2017 LTI Scheme include: (a) Directors; and (b) key employees of the Link
Entities whom, in the opinion of the Remuneration Committee, have contributed, or have the potential to contribute,
to the success of Link.
Grant of Awards
Grant of Award shall be approved by the Remuneration Committee, except grants to a Director, the CEO, or any of
their respective associates (within the meaning under 8.1(d) of Chapter 8 of the REIT Code that was in force in the
relevant time) of the Manager (other than a person who is an associate only by virtue of such person’s employment
with the Manager) which shall be approved by the Board (including the INEDs). No Director shall be involved in the
decision of granting an Award to himself/herself.
No Award shall be granted to an excluded person, a relevant director (as defined in the Rules) or a Substantial
Unitholder of Link, nor their respective associates.
Applicable Limits
No further Award shall be granted if such grant will result in the maximum number of Units that may vest under all
Awards granted under the 2017 LTI Scheme (and any other incentive scheme(s) of any Link Entity) exceeding 10%
of the number of Units in issue (being 221,456,347 Units) as at the adoption date of the 2017 LTI Scheme (i.e. 10 July
2017).
No Award shall be granted to any participant (or his associates) if such grant will result in the maximum number of
Units that may vest under all Awards granted to such participant (or his associate) under the 2017 LTI Scheme (and
any other incentive scheme(s) of any Link Entity), within 12 months immediately preceding the date of the proposed
grant, exceeding 1% of the number of Units in issue from time-to-time.
No Award shall be granted to an INED or NED (or their associates) if such grant will result in the maximum number of
Units that may vest under all Awards granted to such INED or NED (or their associate) under the 2017 LTI Scheme (and
any other incentive scheme(s) of any Link Entity), within 12 months immediately preceding the date of the proposed
grant, exceeding 0.1% of the number of Units in issue from time-to-time.
Vesting
Restricted Unit Awards shall generally be satisfied by Units purchased through an independent third-party
intermediary on open stock market save in limited circumstances prescribed in the Rules (such as in the death of a
grantee) where a cash amount may be paid in lieu of Units that would have vested under the relevant Restricted Unit
Awards.
Vesting Period
The vesting period of an Award is generally over three years or such other period as determined in the relevant grant
by the Remuneration Committee.
Performance Targets
Performance targets, vesting scale, and/or other vesting conditions (if any) of an Award shall be determined by
the Remuneration Committee which, in its absolute discretion, will determine whether, and to what extent, such
performance targets and/or vesting conditions (if any) have been satisfied (or, if applicable, waived) upon vesting.
During the year under review, the Board engaged Aon, an independent external consultant, to review and enhance
Link’s Executive Compensation Framework for FY2020/2021 onwards. Further details are set out under section
‘Report of the Remuneration Committee’ on pages 45 and 46 of this report.
Duration
The 2017 LTI Scheme shall be valid for 10 years commencing from the adoption date, save and except as in the case
of extension by the Board or early termination as contemplated under the Rules.
Aggregate
Values of values
Outstanding Granted Vested Cancelled Lapsed Outstanding recognised recognised
Date of at during the during during during at during up to
Name (Position) grant Vesting period 1 Apr 2020 year(2) the year(3) the year(4) the year(4) 31 Mar 2021 the year(5) 31 Mar 2021(6)
HK$’000 HK$’000
Directors
Nicholas Charles ALLEN 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 11,250 – (11,250) – – – 61 814
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 10,500 – (10,500) – – – 86 727
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 10,500 – – – – 10,500 321 749
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 8,072 – – – – 8,072 327 530
5 Jul 2019 5 Jul 2019 to 30 Jun 2022 8,072 – – – – 8,072 218 354
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 12,556 – – – 12,556 340 340
29 Jul 2020 29 Jul 2020 to 30 Jun 2023 – 12,556 – – – 12,556 227 227
George Kwok Lung 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 269,075(7) – (194,454) – (74,621) – 1,998 15,151
HONGCHOY
(Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 518,763(7) – – – (518,763) – (9,064) 7,735
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 518,763(7) – – – – 518,763(7) (8,628) 7,141
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 392,894 – – – 392,894 10,641 10,641
29 Jul 2020 29 Jul 2020 to 30 Jun 2023 – 392,894 – – – 392,894 7,094 7,094
NG Kok Siong 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 65,800(7) – – – (65,800) – (1,150) 981
(Executive Director)
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 65,800 (7)
– – – – 65,800 (7)
(1,094) 906
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 63,879 – – – 63,879 1,730 1,730
29 Jul 2020 29 Jul 2020 to 30 Jun 2023 – 63,879 – – – 63,879 1,153 1,153
Ian Keith GRIFFITHS 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,500 – (3,500) – – – 19 253
(Non-Executive
Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,250 – (3,250) – – – 26 225
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 3,799 – – – 3,799 103 103
Aggregate
Values of values
Outstanding Granted Vested Cancelled Lapsed Outstanding recognised recognised
Date of at during the during during during at during up to
Name (Position) grant Vesting period 1 Apr 2020 year(2) the year(3) the year(4) the year(4) 31 Mar 2021 the year(5) 31 Mar 2021(6)
HK$’000 HK$’000
Christopher John 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,250 – (3,250) – – – 26 225
BROOKE
(Independent 4 Jul 2018 4 Jul 2018 to 30 Jun 2021 3,250 – – – – 3,250 99 232
Non-Executive Director)
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,414 – – – – 2,414 98 159
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 3,799 – – – 3,799 103 103
Ed CHAN Yiu Cheong 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,500 – – (3,500)(8) – – 19 253
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,250 – – (3,250) (8)
– – 26 225
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,642 – – – – 2,642 107 174
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,141 – – – 4,141 112 112
Blair Chilton PICKERELL 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,500 – – (3,500)(8) – – 19 253
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,250 – – (3,250)(8) – – 26 225
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,719 – – – – 2,719 110 179
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,267 – – – 4,267 116 116
Poh Lee TAN 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,750 – (3,750) – – – 20 271
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,500 – (3,500) – – – 29 242
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 3,500 – – – – 3,500 107 250
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,662 – – – – 2,662 108 175
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,153 – – – 4,153 112 112
Aggregate
Values of values
Outstanding Granted Vested Cancelled Lapsed Outstanding recognised recognised
Date of at during the during during during at during up to
Name (Position) grant Vesting period 1 Apr 2020 year(2) the year(3) the year(4) the year(4) 31 Mar 2021 the year(5) 31 Mar 2021(6)
HK$’000 HK$’000
May Siew Boi TAN 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 4,250 – (4,250) – – – 23 307
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 4,000 – (4,000) – – – 33 277
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 4,000 – – – – 4,000 122 285
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 3,091 – – – – 3,091 125 203
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,788 – – – 4,788 130 130
Peter TSE Pak Wing 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 4,500 – (4,500) – – – 24 325
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,750 – (3,750) – – – 31 260
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 3,750 – – – – 3,750 115 267
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,878 – – – – 2,878 117 189
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,499 – – – 4,499 122 122
Nancy TSE Sau Ling 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,750 – (3,750) – – – 20 271
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,500 – (3,500) – – – 29 242
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 3,500 – – – – 3,500 107 250
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,662 – – – – 2,662 108 175
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,153 – – – 4,153 112 112
Elaine Carole YOUNG 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 3,750 – (3,750) – – – 20 271
(Independent
Non-Executive Director) 4 Jul 2018 4 Jul 2018 to 30 Jun 2020 3,500 – (3,500) – – – 29 242
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 3,500 – – – – 3,500 107 250
5 Jul 2019 5 Jul 2019 to 30 Jun 2021 2,642 – – – – 2,642 107 174
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 4,141 – – – 4,141 112 112
Aggregate
Values of values
Outstanding Granted Vested Cancelled Lapsed Outstanding recognised recognised
Date of at during the during during during at during up to
Name (Position) grant Vesting period 1 Apr 2020 year(2) the year(3) the year(4) the year(4) 31 Mar 2021 the year(5) 31 Mar 2021(6)
HK$’000 HK$’000
Other participants
In aggregate 14 Jul 2017 14 Jul 2017 to 30 Jun 2020 350,306(7) – (251,029) – (99,277) – 2,580 19,848
4 Jul 2018 4 Jul 2018 to 30 Jun 2020 363,532(7) – – – (363,532) – (5,428) 4,632
4 Jul 2018 4 Jul 2018 to 30 Jun 2021 358,675(7) – – – (52,877) 305,798(7) (5,085) 4,207
29 Jul 2020 29 Jul 2020 to 30 Jun 2022 – 315,479 – – (33,311) 282,168 7,642 7,642
29 Jul 2020 29 Jul 2020 to 30 Jun 2023 – 315,479 – – (33,311) 282,168 5,095 5,095
Notes:
(1) The Restricted Unit Awards in the above table were all granted in conjunction with Conditional Cash Awards. The aggregate weighted average value
carried by the outstanding Conditional Cash Awards attached to the outstanding Restricted Unit Awards at the end of the year was HK$3.858 per
Unit.
(2) The closing price of the Units on the business day immediately preceding the date of grant of the Restricted Unit Awards during the year was
HK$58.2 per Unit. On the assumption that the Restricted Unit Awards granted during the year were finally vested for the maximum number of Units,
the estimated fair value of such Restricted Unit Awards would amount to approximately HK$114 million as at 31 March 2021 based on the valuation
of an independent valuer.
(3) The closing price of the Units on the business day on which the relevant Restricted Unit Awards were vested during the year was HK$63.35 per
Unit. Pursuant to the 2017 LTI Scheme, an aggregate cash payment of approximately HK$35.4 million was made to the EDs and other participants,
which comprised: (i) HK$5.0 million for the Conditional Cash Awards and the Restricted Unit Awards; (ii) HK$19.3 million in “catch-up” adjustments,
calculated by reference to the closing price of the Units on the vesting date; and (iii) HK$11.1 million in ex-gratia payments.
(4) These figures represent the maximum number of Units in respect of which the Restricted Unit Awards had lapsed or were cancelled during the
year. The Conditional Cash Awards granted in conjunction with such Restricted Unit Awards had lapsed or were cancelled simultaneously.
(5) Values recognised during the year represent the amounts recognised in the consolidated income statement under Hong Kong Financial Reporting
Standards for the year ended 31 March 2021. The values are estimated by an independent external valuer based on valuation techniques and
assumptions on Unit price, outstanding length of the Awards and other market conditions, if appropriate, and charged to the consolidated income
statement over the vesting period.
(6) Aggregate of values recognised up to 31 March 2021 represents the aggregated amounts recognised in the financial statements under Hong Kong
Financial Reporting Standards for the period from grant dates to 31 March 2021.
(7) These figures represent the maximum number of Units that may be purchased in the grantee’s favour on vesting of his/her relevant Restricted Unit
Awards. The actual number of Units that will finally vest and be purchased for each relevant grantee may range from zero to such maximum number
depending on whether, and to what extent, the relevant vesting conditions (if any) are met. The Restricted Unit Awards relating to the NED and
INEDs are tenure-based only.
(8) Cash payments in lieu of Units were made to Mr Ed CHAN Yiu Cheong and Mr Blair Chilton PICKERELL pursuant to the 2017 LTI Scheme.
The Restricted Unit Awards and Conditional Cash Awards granted under the 2017 LTI Scheme are to be expensed
through Link’s consolidated income statement over the relevant vesting period. Further details of the 2017 LTI
Scheme are set out in Note 21 to the consolidated financial statements.
Notes:
(1) The Manager has delegated property management and administrative functions to its subsidiaries. The Manager and its subsidiaries recover their
expenses from Link on a cost recovery basis.
(2) Trustee’s fee shall not be less than such amount as shall be equal to 0.006% per annum and 0.015% per annum of the values of Link’s properties
in and outside Hong Kong respectively as determined in the latest annual valuation report prepared by the Principal Valuer, subject to a minimum of
HK$150,000 per month.
(3) These included shops, ATMs, showcases and minor lettings at various locations within Link’s properties.
(4) Excluding deposits received.
(5) Including transaction fees paid by the Manager for buy-back of Units and other administration fees during the year under review.
(6) Mr George Kwok Lung HONGCHOY ceased to be a council member of HKIoD with effect from 21 July 2020. As such, HKIoD ceased to be a
connected person of Link with effect from 21 July 2020.
(7) Following the appointment of Mr Lincoln LEONG Kwok Kuen as INED on 1 March 2021, HKMA became a connected person of Link with effect from
1 March 2021.
Hang Seng Bank, Tenancy for shop Term of 2 years ending 3.5 N/A
Limited (“Hang no. 121A at Temple on 2 July 2021
Seng”) Mall South
Tenancy for shop no. Term of 3 years ending 3.5 N/A
G202 at Lok Fu Place on 31 October 2022
Notes:
(1) Annual rent is calculated from the monthly base rent on a 12-month basis as if such rent was received from the beginning of the financial year.
(2) During the year under review, no lease transaction was entered into between DBS (HK) Ltd. and Link’s SPVs with an annual rent exceeding
HK$1 million.
(3) In the form of bank guarantee.
Loans
Loan transactions by The Link Finance Limited (a wholly-owned SPV of Link) with those banks which are Link’s
connected persons during the year under review were as follows:
(i) a bilateral loan of HK$1.5 billion was made available in March 2016 by Hang Seng of which the outstanding
amount due to Hang Seng as at 31 March 2021 was HK$1.2 billion; and
(ii) a four-year club loan of HK$12 billion was made available in September 2019 of which outstanding amounts due
to, respectively, HSBC was HK$1.0 billion, Hang Seng was HK$0.4 billion, Dah Sing Bank was HK$0.2 billion and
DBS (HK) Ltd. was HK$1.0 billion as at 31 March 2021.
The Link Finance Limited (a wholly-owned SPV of Link) also maintained interest rate swap contracts, cross currency
swap contracts and par forward contracts with HSBC during the year under review. As at 31 March 2021, the total
notional principal outstanding value in respect of such contracts with HSBC was approximately HK$6.0 billion.
Deposits
As at 31 March 2021, SPVs of Link placed deposits with the HSBC Group of approximately HK$1.7 billion.
Other Transactions
During the year under review, pursuant to the MTN programme, two tranches of fixed rate private notes for a principal
amount of respectively, HK$1,010 million due on 2025 and HK$400 million due on 2038, were issued on 2 April
2020 and 27 October 2020 with HSBC acting as the dealer. No fee or commission was paid to HSBC in respect of
the transactions.
The two issues were within the waiver granted by the SFC in respect of connected party transactions with the HSBC
Group. Both of them were conducted at arm’s length on normal commercial terms. In order to ensure the effective
interest cost of a new note issue is competitive, the Manager monitors the market interest rates and compares
quotations from multiple dealers from time to time. Save as disclosed above, no other note was issued pursuant to
the MTN programme with a connected person acting as dealer in the year.
Types of Funding:
1. Project Fund
• Support projects with innovative service concepts that fill social service gaps
• Advance sustainable development in the communities Link serves
2. Link University Scholarship
• Established in 2015, the Link University Scholarship supports the first generation university students to
study at a Hong Kong university
• Promote upward social mobility of Hong Kong Youth
• A grant of HK$20,000 for each awardee to help realise their dreams and ambitions
• Create platforms for scholars to gain exposure through Link Scholars Alumni programme
• Applicants who apply for Year 1 university scholarship must be a Secondary Six full-time student applying
for university studies at a Hong Kong university funded by the University Grants Committee in the current
year and is nominated by their secondary school, and is the first amongst three generations in their family
• Applicants who apply for Year 2 to 4 university scholarship must be a full-time university student who will
continue their Year 2, 3 or 4 full-time bachelor’s study at a Hong Kong university funded by the University
Grants Committee in the current year and is the first among three generations in their family
1. Arts’ Options Limited Inspirational Elderly 2,206 1,799,710 The project aims to unleash the
Drama potential of the young-old and
Programme elderly by providing them with
for Elderly professional theatre training.
Through public performance, the
elderly people are engaged and
connected to the community, and
may even turn their hobby into a
second career in the long run.
Arts’ Options aspires to set up the
first seniors’ theatre group in Hong
Kong in the future.
2. Bo Charity Foundation Food Angel – Elderly and low- 1,935,800 3,653,112 For the fifth consecutive year, the
Limited Love & Food income families project has arranged for surplus
Sharing and food to be collected at 36 of
Education Link’s fresh markets and 15 of
its shopping centres to provide
meal boxes and food packs to the
needy. The project targets to save
over 600 tonnes food waste each
year and benefit more than 1.9
million people.
3. Culture Power Charity We are Top Youth 5,836 1,125,836 The project creates a platform for
Foundation Limited Crew young people to turn their interests
in street art to careers. The project
empowers young people to embark
on their career path by providing
on-the-job training on project
management and communications
skills in the performing arts
industry and building networks
for them to secure jobs. CPCF
also encourages young people to
participate in volunteer services in
New Territories West, helping them
contribute to the neighbourhood
and strengthen their ties with
society.
4. Environmental Nature LINK Elderly 68,296 500,800 The project will oversee the
Association Limited creation of two outdoor butterfly
gardens in the vicinity of Link’s
malls. Ambassadors will be
recruited from the community and
trained to manage these gardens.
Butterflies have unique ecological,
scientific and ornamental value.
The project serves as a start to
the journey of building a territory-
wide ecosystem favoured by
butterflies in the urban area aiming
to increase bio-diversity locally,
and to help protect and restore life
on land.
5. Hong Kong Guide Guide Dogs Visually-impaired 10,220 985,300 Link has opened its properties for
Dogs Association Development Persons guide dog puppy training since
Limited and Public 2013 and has been supporting
Education HKGDA for seven years. In
Programme 2020/21, HKGDA will continue
the local breeding and implement
clicker training, a new training
technique for guide dogs. It will
also bring to the public’s attention
the daily lives led by visually
impaired persons via exhibiting
photos taken by them, which
in turn promotes an inclusive
community.
6. Jane Goodall Institute Play Green Youth 48,960 811,778 The project will train 160 families
of Hong Kong Limited in Link to become a “Play Green Family”
Community who will explore the natural areas
around Link’s malls by using the
“Green Maps” created under
previous sponsorship from Link
and join the workshop. Then, they
will assist in organising a “Play
Green Fun Day” in order to spread
the message of environmental
protection among the community.
In what will be a first-of-its-kind
in Hong Kong, the project will
produce a “play book” containing
card games, group games,
community adventure maps and
environment-related information.
7. Kwun Tong Methodist Key of Life – Youth & Elderly 3,495 997,157 The project aims to create an
Social Services Care • inclusive society by connecting
Share • young people with special
Action education needs (SEN) and
seniors with dementia through
activities such as arts workshops,
toy banks and local tours.
Equipping the young people with
communications and career
planning skills, the project allows
them to put theory into practice
while spicing up the seniors’ lives
and lessening the illness’ adverse
impacts.
Trustee’s Report
We hereby confirm that, in our opinion, the Manager of Link Real Estate Investment Trust has, in all material respects,
managed Link Real Estate Investment Trust in accordance with the provisions of the Trust Deed dated 6 September
2005, as amended and supplemented by fourteen supplemental deeds and an amending and restating deed, for
the financial year ended 31 March 2021.
Opinion
What we have audited
The consolidated financial statements of Link Real Estate Investment Trust (“Link”) and its subsidiaries (together the
“Group”) set out on pages 99 to 158, which comprise:
• the consolidated statement of financial position as at 31 March 2021;
• the consolidated income statement for the year then ended;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of distributions for the year then ended;
• the consolidated statement of changes in equity and net assets attributable to Unitholders for the year then
ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements, which include a summary of significant accounting policies.
Our opinion
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of
the Group as at 31 March 2021, and of its consolidated financial performance and its consolidated cash flows for the
year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong
Institute of Certified Public Accountants (“HKICPA”).
Independence
We are independent of the Group in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the
Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
Key Audit Matter How our audit addressed the Key Audit Matter
Key Audit Matter How our audit addressed the Key Audit Matter
Valuation of Investment Properties (Continued) Assumptions and estimates used by the Valuer
In determining a property’s valuation as at 31 March We, including our valuation experts, attended meetings
2021, the Valuer took into account property-specific with the Valuer where the valuation approach and the
information such as tenancy agreements, rental key assumptions were discussed. The assumptions
income and direct property expenses. The income used varied across the portfolio depending on the age,
capitalisation approach was used, with cross reference nature and location of each property but they included
to the direct comparison approach where applicable. estimated capitalisation rate and net passing income.
The Valuer applied assumptions for capitalisation In each of these areas, and on a sample basis, we
rates and reversionary net passing income, which compared the estimates and assumptions used by the
were influenced by the prevailing market yields and Valuer against the published industry benchmarks and
comparable market transactions to arrive at the final comparable market transactions, and our experience
valuation. in the sector.
Judgements are made in respect of capitalisation rates We performed further work on the properties
and market rents. where assumptions suggested possible outliers in
comparison to market data. Where assumptions were
The adoption of income capitalisation approach is in
outside the expected range or were otherwise unusual,
line with market practice of property valuation and is
and/or valuations showed unexpected movements, we
compliant with the Trust Deed.
held further discussions with the Valuer to understand
There were a number of specific factors affecting the rationale and obtained additional audit evidence to
the valuations in the year which we considered when support the explanations received.
making our judgements:
Overall, we considered that the methodologies used
• revitalisation of certain investment properties in preparing the valuation were appropriate and key
through the Group’s Asset Enhancement Program; assumptions were supportable in light of available and
and comparable market evidence.
• the performance of the Group’s investment property We also assessed the adequacy of the disclosures
portfolio. related to the valuation of investment properties in the
context of HKFRS disclosure requirements and were
We focused on the valuation of investment properties
satisfied that appropriate disclosure has been made.
due to the significant judgements and estimates
involved in determining the valuations.
Other Information
Link Asset Management Limited (the “Manager” of Link) is responsible for the other information. The other
information comprises all of the information included in the annual report other than the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Report on Matters Under the Relevant Provisions of the Trust Deed and the
Relevant Disclosure Provisions of Appendix C of the REIT Code
In our opinion, the consolidated financial statements have been properly prepared, in all material respects, in
accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix C of
the REIT Code.
The engagement partner on the audit resulting in this independent auditor’s report is Wong Hung Nam.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong, 17 June 2021
2021 2020
Note HK$’M HK$’M
Profit/(loss) for the year, before transactions with Unitholders 752 (17,303)
(5,168) (23,233)
Represented by:
Change in net assets attributable to Unitholders,
excluding issues of new units and units bought back (2,566) (24,835)
Amount arising from exchange reserve and
cash flow hedging reserve movements 28 (2,169) 1,783
Non-controlling interest (433) (181)
(5,168) (23,233)
752 (17,303)
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
Note: Earnings/(loss) per unit, based upon profit/(loss)for the year, before transactions with Unitholders attributable to Unitholders and the weighted
average number of units in issue, is set out in Note 13 to the consolidated financial statements.
After
Before Transactions transactions
transactions with with Non-
with Unitholders Unitholders controlling
Unitholders (Note (i)) (Note (ii)) interest Total
HK$’M HK$’M HK$’M HK$’M HK$’M
Total comprehensive income for the year 3,354 (3,354) – (433) (433)
Total comprehensive loss for the year (18,905) 18,905 – (181) (181)
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
Notes:
(i) Transactions with Unitholders comprise the distributions to Unitholders of HK$5,920 million (2020: HK$5,930 million) and change in net assets
attributable to Unitholders, excluding issues of new units and units bought back, which is a decrease of HK$2,566 million (2020: HK$24,835
million).
(ii) In accordance with the Trust Deed, the units of Link Real Estate Investment Trust contain contractual obligations to pay to its Unitholders cash
distributions and also upon termination of the trust, a share of all net cash proceeds derived from the sale or realisation of the assets of the trust
less any liabilities, in accordance with their proportionate interests in the trust at the date of the termination. Unitholders’ funds are therefore
classified as a financial liability rather than equity in accordance with Hong Kong Accounting Standard 32: Financial Instruments: Presentation.
Consistent with Unitholders’ funds being classified as a financial liability, the distributions to Unitholders and change in net assets attributable to
Unitholders, excluding issues of new units and units bought back, are finance costs. Accordingly, the total comprehensive income attributable to
Unitholders, after the transactions with Unitholders, is zero.
2021 2020
Note HK$’M HK$’M
Adjustments:
– Change in fair values of investment properties and impairment of goodwill
attributable to Unitholders 4,910 23,831
– Deferred taxation on change in fair values of investment properties
attributable to Unitholders (12) (454)
– Change in fair values of derivative component of convertible bonds 32 (157)
– Change in fair values of financial instruments (320) (276)
– Depreciation and amortisation of real estate and related assets 54 41
– Other non–cash income (129) (189)
Distribution per unit for the year HK289.99 cents HK287.19 cents
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
Notes:
(i) Under the terms of the Trust Deed, Link Real Estate Investment Trust is required to distribute to Unitholders no less than 90% of its distributable
income for each financial year. Distributable income, according to the Trust Deed, is the Group’s consolidated profit after taxation attributable to
Unitholders, as adjusted to eliminate the effect of certain non-cash adjustments which have been recorded in the consolidated income statement
for the relevant year. For the year ended 31 March 2021, the Manager has decided to distribute 100% (2020: 100%) of its distributable income to
Unitholders. In addition, the Manager recommended a capital return in the form of a discretionary distribution of HK$290 million (2020: HK$291
million). Together with the discretionary distribution, Total Distributable Amount represented 105% (2020: 105%) of the distributable income of the
Group for the year ended 31 March 2021.
(ii) The interim distribution per unit of HK141.65 cents (2020: HK141.47 cents) for the six months ended 30 September 2020 was calculated based on
the interim distribution of HK$2,921 million (2020: HK$2,966 million) for the period and 2,062,427,353 units (2020: 2,096,767,886 units) in issue as
at 30 September 2020. The interim distribution was paid to Unitholders on 28 December 2020.
(iii) The final distribution per unit of HK148.34 cents (2020: HK145.72 cents) for the year ended 31 March 2021 is calculated based on the final
distribution to be paid to the Unitholders of HK$3,089 million (2020: HK$2,999 million) for the second half of the financial year and 2,081,862,866
units (2020: 2,057,898,386 units) in issue as at 31 March 2021, without taking into account any change in the number of units in issue subsequent
to the approval of the consolidated financial statements. The final distribution will be paid to Unitholders on 12 August 2021.
2021 2020
Note HK$’M HK$’M
Assets
Goodwill 14 392 424
Investment properties 15 199,074 193,224
Property, plant and equipment 16 1,301 1,389
Financial assets at amortised cost 17 2,742 2,746
Deposits and prepayments 2,433 497
Derivative financial instruments 25 218 231
Trade and other receivables 18 1,195 1,231
Cash and cash equivalents 19 2,530 7,877
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
2021 2020
Note HK$’M HK$’M
Operating activities
Net cash generated from operating activities 29(a) 7,078 6,589
Investing activities
Acquisition of assets 30 (6,729) –
Acquisition of businesses (750) (67)
Additions to investment properties (859) (1,388)
Additions to property, plant and equipment (37) (218)
Purchase of financial assets at amortised cost – (2,777)
Interest income received 138 188
Deposits paid for acquisition of a joint venture (2,305) –
Deposits paid for acquisition of a property – (365)
Decrease in bank deposits with original maturity of more than three months – 4,095
Financing activities
Proceeds from interest bearing liabilities, net of transaction costs 20,627 21,629
Repayment of interest bearing liabilities (17,458) (15,474)
Proceeds from convertible bonds, net of transaction costs – 3,974
Increase in amount due to non–controlling interest 49 159
Interest expenses paid (928) (882)
Payment of lease liabilities (5) (2)
Distributions paid to Unitholders (3,966) (5,930)
Units bought back for cancellation (379) (4,240)
Effect on exchange rate changes on cash and cash equivalents 177 (108)
The notes on pages 105 to 158 are an integral part of these consolidated financial statements.
1 Corporate Information
Link Real Estate Investment Trust (“Link”) is a collective investment scheme authorised under section 104 of the
Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Link is governed by a First Amending
and Restating Deed entered into on 8 February 2021 (the “Trust Deed”).
The principal activity of Link and its subsidiaries (the “Group”) is investing in real estate and may undertaking
property development and related activities in respect of all types of developments. The addresses of the
registered offices of the Manager, Link Asset Management Limited, and the Trustee, HSBC Institutional Trust
Services (Asia) Limited, are 20/F., Tower 1, The Quayside, 77 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
and 1 Queen’s Road Central, Hong Kong, respectively.
2 Basis of Preparation
(a) Statement of Compliance
The consolidated financial statements have been prepared in accordance with the Hong Kong Financial
Reporting Standards (“HKFRSs”), the requirements of the Trust Deed and the relevant disclosure
requirements as set out in Appendix C of the Code on Real Estate Investment Trusts (the “REIT Code”)
issued by the Securities and Futures Commission of Hong Kong. HKFRSs is a collective term which
includes all applicable HKFRSs, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by
the Hong Kong Institute of Certified Public Accountants.
The adoption of these new standards and amendments has not had any significant effect on the results
reported and the financial position of the Group.
The Group is in the process of making an assessment of the impact of these new standards and
amendments upon initial application.
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of
the net identifiable assets of the acquired business at the date of acquisition. Goodwill on business
combinations is stated as a separate asset. Separately recognised goodwill is tested annually for
impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not
reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to
the entity sold. Goodwill is allocated to cash–generating units for the purpose of impairment testing.
(ii) Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and a
reliable estimate of the amount can be made. Where a provision is expected to be reimbursed, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.
Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre–tax rate that reflects current market assessments of the time value of
money and the risks specific to the obligation. The increase in the provision due to passage of time is
recognised as interest expense.
(l) Leases
Leases are recognised as a right–of–use asset and a corresponding liability at the date at which the leased
asset is available for use by the group, except for short–term leases that have a lease term of 12 months or
less and leases of low–value assets. Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities are the net present value of the fixed lease payments discounted using
the interest rate implicit in the lease and subsequently stated at amortised cost.
Lease payments are allocated between principal and finance cost. The finance cost is charged to the
consolidated income statement over the lease period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period.
On the Group’s consolidated statement of financial position, right–of–use asset has been included in
property, plant and equipment and lease liabilities have been included in accruals.
2021 2020
HK$’M HK$’M
As at 31 March 2021, if interest rates on floating rate interest bearing liabilities net of floating
rate interest bearing assets had been 100 basis points higher/lower with all other variables held
constant, profit for the year, before transactions with Unitholders, would have been HK$101 million
lower/higher (2020: loss for the year, before transactions with Unitholders, would have been
HK$77 million higher/lower), mainly as a result of higher/lower interest expense on floating rate
borrowings. As at 31 March 2021, if interest rates had been 100 basis points higher/lower, the
hedging reserve would have been HK$377 million / HK$401 million (2020: HK$54 million / HK$60
million) higher/lower mainly as a result of an increase/decrease in the fair values of the cash flow
hedges as described above.
2021 2020
HK$’M HK$’M
At 31 March 2021
Trade payables and accruals 2,101 2 – –
Derivative financial instruments (net settled) 7 8 110 –
Security deposits 627 500 554 108
Convertible bonds 64 64 4,065 –
Interest bearing liabilities 3,912 2,227 23,147 8,309
Amount due to non–controlling interest – 4,022 – –
Non–controlling interest put option obligation – 234 – –
Unitholders’ funds – – – 158,720
At 31 March 2020
Trade payables and accruals 2,328 2 – –
Derivative financial instruments (net settled) 15 24 28 25
Security deposits 585 423 635 139
Convertible bonds 64 64 4,129 –
Interest bearing liabilities 7,628 3,307 13,257 11,092
Amount due to non–controlling interest – 3,956 – –
Non–controlling interest put option obligation – 596 – –
Retention amount for acquisition of a
business 710 – – –
Unitholders’ funds – – – 159,711
2021 2020
HK$’M HK$’M
At 31 March 2021
Assets
Investment properties – – 199,074 199,074
Derivative financial instruments – 218 – 218
Liabilities
Derivative financial instruments – 129 – 129
Non-controlling interest put option obligation – – 204 204
At 31 March 2020
Assets
Investment properties – – 193,224 193,224
Derivative financial instruments – 231 – 231
Liabilities
Derivative financial instruments – 88 – 88
Non–controlling interest put option obligation – – 530 530
There were no transfers between these three levels during the year (2020: Nil).
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels as of the date of
the event or change in circumstances that caused the transfer.
6 Revenue
Revenue recognised during the year comprises:
2021 2020
HK$’M HK$’M
Rentals
– Hong Kong retail properties 6,159 6,288
– Hong Kong car parks 1,883 1,912
– Mainland China retail properties 850 937
– Hong Kong, Mainland China and overseas offices 778 401
Other revenue (Note) 1,074 1,180
Note: Other revenue includes management fees, air conditioning service fees, promotion levies and miscellaneous revenue. Management fees
have been reclassified from rental to other revenue, comparative figures have been restated.
Leases with tenants provide for monthly base rent and recovery of certain outgoings. Additional rents based
on business turnover amounted to HK$86 million (2020: HK$114 million) and have been included in the rental
income.
7 Segment Information
As at 31 March 2021
Segment assets 125,406 31,526 20,878 26,193 204,003
Goodwill 392
Financial assets at amortised cost 2,742
Derivative financial instruments 218
Cash and cash equivalents 2,530
For the year ended 31 March 2021, revenue of HK$1,357 million (2020: HK$1,448 million) is attributable to
external customers from Mainland China, HK$9,016 million (2020: HK$9,270 million) is attributable to external
customers from Hong Kong, and HK$371 million (2020: Nil) is attributable to external customers from overseas.
As at 31 March 2021, investment properties, property, plant and equipment, and goodwill amounting to
HK$27,288 million (2020: HK$25,474 million) are located in Mainland China, HK$165,422 million (2020:
HK$169,563 million) are located in Hong Kong and HK$8,057 million (2020: Nil) are located in overseas.
As at 31 March 2020
Segment assets 128,337 31,801 19,475 16,728 196,341
Goodwill 424
Financial assets at amortised cost 2,746
Derivative financial instruments 231
Cash and cash equivalents 7,877
2021 2020
HK$’M HK$’M
2,506 2,498
9 Finance Costs
2021 2020
HK$’M HK$’M
1,081 1,100
Less: capitalised under investment properties (Note (ii)) (17) (53)
1,064 1,047
Change in fair values of derivative component of convertible bonds (Note 24) 32 (157)
Fair value gain on non–controlling interest put option obligation (Note 22) (326) (260)
770 630
Notes:
(i) Other borrowing costs mainly include HK$96 million (2020: HK$111 million) interest expenses to non–controlling interest, HK$57 million net
losses (2020: HK$38 million net gains) on interest rate swap contracts designated as cash flow hedges, HK$45 million net gains (2020:
HK$13 million net losses) on cross currency swap contracts and interest rate swap contracts designated as fair value hedges and various
banking and financing charges.
(ii) Interest expenses have been capitalised under investment properties at an average interest rate of 2.8% (2020: 3.3%) per annum.
2021 2020
HK$’M HK$’M
Bank charges 8 6
Commission to property agents 20 10
Donations 14 14
Exchange loss/(gain) on financial instruments 79 (48)
Short–term lease expenses 5 13
Other legal and professional fees 7 31
11 Staff Costs
2021 2020
HK$’M HK$’M
736 762
Less: capitalised under investment properties (77) (73)
Note:
(i) The Group operates a pension scheme – Mandatory Provident Fund. The scheme is a defined contribution plan funded through payments to
trustee–administered funds. A defined contribution plan is a pension plan under which the employer pays fixed contributions into a separate
entity (a fund). The Group has no further payment obligations once the contributions have been paid.
12 Taxation
Hong Kong profits tax has been provided for at the rate of 16.5% (2020: 16.5%) on the estimated assessable
profit for the year. Income taxes in Mainland China and overseas have been provided for at the applicable rate
on the estimated assessable profit for the year.
The amount of taxation charged/(credited) to the consolidated income statement represents:
2021 2020
HK$’M HK$’M
Current taxation
– Hong Kong 786 814
– Mainland China 174 174
The differences between the Group’s expected tax charge, using the Hong Kong profits tax rate, and the
Group’s taxation for the year were as follows:
2021 2020
HK$’M HK$’M
Expected tax calculated at the Hong Kong profits tax rate of 16.5% (2020: 16.5%) 304 (2,738)
Tax effect of different taxation rates 56 (86)
Tax effect of non–deductible expenses 900 3,664
Tax effect of non–taxable income (84) (92)
Tax effect of other temporary differences (69) (59)
Utilisation of previously unrecognised tax loss (13) (10)
Withholding tax on unremitted earnings of subsidiaries (2) 33
On 18 March 2021, the Group received a protective additional tax assessment for the year of assessment
2014/15 from Hong Kong’s Inland Revenue Department (“IRD”) amounting to HK$345 million. Such additional
profits tax assessment was made on the gain in respect of the disposal of properties and is additional to the
profits tax assessment already made by IRD on profits derived from its business during the assessment period.
Based on the professional opinion and advice of the legal and tax advisors, the Group believes that there is no
ground to the assessment and has lodged an objection to IRD on the basis that profits tax shall not be charged
on the profits derived from the sales of the properties, which sales were capital rather than trading in nature.
Accordingly, no tax provision was made in respect of this protective assessment. According to the instruction of
the IRD, tax reserve certificates amounting to HK$172 million were purchased on 10 May 2021 as a condition for
the tax payable holdover arrangement.
13 Earnings/(Loss) Per Unit Based Upon Profit/(Loss) for the Year, Before
Transactions With Unitholders Attributable to Unitholders
2021 2020
Weighted average number of units for the year for calculating basic and
diluted earnings/(loss) per unit 2,066,880,618 2,096,244,109
The basic and diluted earnings/(loss) per unit are the same as the convertible bonds have an anti–dilutive effect
on the basic earnings/(loss) per unit for the years ended 31 March 2021 and 31 March 2020.
14 Goodwill
2021 2020
HK$’M HK$’M
During the year ended 31 March 2021, impairment losses of HK$46 million (2020: Nil) on goodwill were charged
to the consolidated income statement resulting from changes in the market environment for the underlying
businesses.
15 Investment Properties
(a) Details of the Movements of Investment Properties are as follows:
Relationship of significant
Significant unobservable inputs unobservable inputs to fair value
ii) Net passing income per annum: The higher the net passing
HK$0.7M – HK$363.9M income, the higher the fair
(2020: HK$0.6M – HK$351.8M) value.
The investment properties are included in Level 3 (2020: Level 3) of the fair value hierarchy.
Land, building
and leasehold Right–of–use Motor
improvements assets vehicles Equipment Total
HK$’M HK$’M HK$’M HK$’M HK$’M
At 31 March 2021
Cost 1,321 9 7 192 1,529
Accumulated depreciation (116) (7) (6) (99) (228)
At 31 March 2020
Cost 1,316 9 7 213 1,545
Accumulated depreciation (62) (2) (5) (87) (156)
2021 2020
HK$’M HK$’M
2,742 2,746
During the year, the Group has interest income arising from financial assets at amortised cost amounting to
HK$94 million (2020: HK$68 million). The carrying amounts of the financial assets at amortised cost are expected
to be recovered as below:
2021 2020
HK$’M HK$’M
2,742 2,746
2021 2020
HK$’M HK$’M
1,195 1,231
The carrying amounts of these receivables approximate their fair values and are expected to be mostly
recovered within one year.
There are no specific credit terms given to the tenants. The net trade receivables are mostly covered by the
rental deposits/bank guarantees from corresponding tenants.
2021 2020
HK$’M HK$’M
320 270
Monthly rentals in respect of retail and commercial properties are payable in advance by tenants in accordance
with the leases while daily gross receipts from car parks are received from the car park operators in arrears.
Included in the net trade receivables of HK$253 million (2020: HK$210 million) presented above were HK$40
million (2020: HK$52 million) of accrued car park income and HK$19 million (2020: HK$9 million) of accrued
turnover rent, which were not yet due as at 31 March 2021.
Movements on the provision for impairment of trade receivables are as follows:
2021 2020
HK$’M HK$’M
At 1 April 60 6
Provision for impairment of trade receivables 14 55
Receivables written off during the year as uncollectible (11) (1)
Exchange adjustments 4 –
At 31 March 67 60
The creation and release of provision for impairment of trade receivables have been included in property
operating expenses in the consolidated income statement. Amounts charged to the provision account will be
written off when there is no expectation of recovering additional cash.
The other classes of receivables included in the trade and other receivables do not contain impaired assets
since the expected credit loss of the other receivables is close to zero.
The maximum exposure to credit risk at the reporting date is the fair value of trade receivables.
2021 2020
HK$’M HK$’M
2,530 7,877
2021 2020
HK$’M HK$’M
3,029 2,871
Deferred tax assets and liabilities are expected to be recoverable and settled after one year.
The movements in deferred tax assets and liabilities during the year were as follows:
Investment properties
revaluation and
accelerated
depreciation allowance Others Total
HK$’M HK$’M HK$’M
2021 2020
HK$’M HK$’M
82 136
On 10 July 2017, Link adopted a new long–term incentive scheme (the “2017 LTI Scheme”). Under the 2017 LTI
Scheme, the Manager may grant restricted unit awards and conditional cash awards to directors of the Manager
and key employees of the Group.
During the year, certain directors and employees of the Manager were granted restricted unit awards and
conditional cash awards at nil monetary consideration under the 2017 LTI Scheme. The restricted unit awards
granted under the 2017 LTI Scheme, in general, will vest approximately two to three years from the date of
grant. Under the 2017 LTI Scheme, units will be purchased in the grantees’ favour from open stock market to
satisfy restricted units awards vested. For those restricted unit awards granted with performance goals, the
eventual numbers of units to be purchased in each grantee’s favour upon vesting are linked to the performance
of Link based on the total Unitholders return, net property income or certain vesting conditions. Conditional
cash awards were also granted in conjunction with the restricted unit awards, bestowing upon each grantee
a conditional right to receive a cash payment representing an amount equivalent to the aggregate of the
distributions during the vesting period, catch-up adjustments and ex-gratia payments pursuant to the 2017 LTI
Scheme, if applicable.
During the year, the Group purchased 515,483 units (2020: 366,239 units) from the market for restricted units
awards which have vested in accordance with the 2017 LTI Scheme.
During the vesting period, a liability is recognised representing the estimated value of the awards granted under
both the 2017 LTI Scheme and the portion of the vesting period expired as at the reporting date. The value of
the awards was estimated at the reporting date by Towers Watson Hong Kong Limited, an independent external
valuer based on valuation techniques and assumptions on unit prices, outstanding length of the awards,
distribution pay–out rates and other market conditions, if appropriate. The change in value of the outstanding
awards was charged to the consolidated income statement. In the event that the vesting conditions are not met,
the amount previously accrued will be written back accordingly.
Maximum
Outstanding Granted Vested Cancelled Lapsed Outstanding to be
as at during during during during as at vested on
Date of grant Vesting period 1 April 2020 the year the year(i) the year the year 31 March 2021 vesting date (ii)
4 July 2018 4 July 2018 to 30 June 2020 445,188 – (35,250) (6,500) (403,438) – –
5 July 2019 5 July 2019 to 30 June 2021 496,683 – – – (20,575) 476,108 1,075,400
29 July 2020 29 July 2020 to 30 June 2022 – 822,548 – – (33,311) 789,237 789,237
Notes:
(i) Restricted unit award vesting percentages during the year ranged from 0% to 200%.
(ii) If certain vesting conditions are met.
(iii) Additional units over 100% of restricted unit award granted were vested pursuant to the relevant vesting conditions.
22 Other Liabilities
2021 2020
HK$’M HK$’M
4,048 5,017
Notes:
(i) On 23 February 2015, the Group through a non–wholly owned subsidiary (the “Project Company”, in which Link has an indirect 60% interest
and Nan Fung Development Limited (“Nan Fung”) has an indirect 40% interest) acquired 77 Hoi Bun Road in Kowloon East for commercial
development. For the purpose of funding the commercial development, Nan Fung, a non–controlling interest of the Project Company has
contributed cash in proportion to the shareholding ratio to the Project Company. The amount due to non–controlling interest is unsecured,
interest bearing at an effective interest rate of 2.8% (2020: 3.3%), has no fixed repayment term and is not repayable within one year. Such
amount including any accrued interest will be repaid from the Project Company’s surplus cash after meeting its payment obligations.
(ii) Pursuant to the shareholders’ agreement, Nan Fung has a right to exercise a put option to require Link to purchase all the issued shares Nan
Fung holds in the Project Company at the then fair market value, after the second anniversary of the issuance of the Certificate of Compliance
for the commercial property development and certain conditions have been satisfied. The non–controlling interest put option obligation
was recognised as a financial liability based on a valuation performed by Crowe Horwath First Trust Appraisal Pte Ltd, an independent firm
of professional qualified valuers. The valuer has used discounted cash flow as the valuation technique. The valuation is based on various
assumptions and calculated by reference to a number of unobservable inputs, including the estimated fair value of the equity interests of the
Project Company at the expected time of exercise of the put option, the expected time of exercise itself, the cash flow and the discount rate
used. The Manager held discussions with the valuer and reviewed all significant inputs used. Discussions of the valuation processes and
results at each reporting date are held between the Manager and the valuer. Fair value of the put option obligation is included in Level 3 (2020:
Level 3) of the fair value hierarchy. If the estimated fair value of the equity interests of the Project Company at the time of exercise is higher,
the fair value of the put option obligation would also be higher. If the expected time of exercise is later or if the discount rate is higher, then the
fair value of the put option obligation would be lower.
The movement of non–controlling interest put option obligation during the year is as follows:
2021 2020
HK$’M HK$’M
2021 2020
HK$’M HK$’M
34,634 30,688
The carrying amounts interest bearing liabilities are expected to be settled as below:
2021 2020
HK$’M HK$’M
3,248 937
1,605 5,515
8,127 1,666
6,030 7,133
7,735 5,879
2021 2020
HK$’M HK$’M
7,889 9,558
34,634 30,688
Notes:
(i) After taking account the cross currency swap contracts, except for bank borrowings of HK$2,834 million (2020: HK$2,177 million), HK$3,861
million (2020: HK$1,003 million) and HK$3,833 million (2020: Nil) which are denominated in Renminbi, Australian Dollars and British Pound
Sterling respectively, all the other interest bearing liabilities are denominated in Hong Kong Dollars.
(ii) After taking account the cross currency swap contracts and interest rate swap contracts, the effective interest rate of the interest bearing
liabilities which are denominated in Hong Kong Dollars as at 31 March 2021 was 2.40% (2020: 2.94%) and that of the interest bearing
liabilities which are denominated in Renminbi, Australian Dollars and British Pound Sterling was 3.84% (2020: 5.58%), 1.06% (2020: 1.43%)
and 1.02% (2020: N/A) respectively.
24 Convertible Bonds
On 3 April 2019, the Group issued HK$4 billion convertible bonds at 1.6% per annum due 2024. These bonds
are convertible into new Link units at an initial conversion price of HK$109.39 per unit at the option of the
bondholder. Link has the option to redeem the bonds if the closing price of the units is 130% or above the initial
conversion price while bondholders have the right to require Link to redeem all or some only of the bonds on
3 April 2022. The convertible bonds are unsecured. The effective interest rate of the convertible bonds at 31
March 2021 was 3.12% (2020: 3.12%).
2021 2020
HK$’M HK$’M
Liability component
At 1 April 3,910 –
Issuance of convertible bonds – 3,817
Finance costs (Note 9) 125 125
Interest expenses paid (65) (32)
Derivative component
At 1 April – –
Issuance of convertible bonds – 157
Change in fair value (Note 9) 32 (157)
At 31 March 32 –
4,002 3,910
2021 2020
HK$’M HK$’M
Derivative assets
Designated as cash flow hedge
– interest rate swap contracts 43 –
Designated as fair value hedge
– cross currency swap contract 146 212
– interest rate swap contracts 18 19
Not designated as hedging instruments
– cross currency swap contract 11 –
218 231
Derivative liabilities
Designated as cash flow hedge
– interest rate swap contracts (11) (88)
Designated as fair value hedge
– cross currency swap contracts (2) –
Not designated as hedging instruments
– cross currency swap contract (116) –
(129) (88)
Notes:
(i) The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in Level 2 of the fair value hierarchy.
(ii) The fair values of cross currency swap contracts and interest rate swap contracts are calculated by reference to the present values of the
estimated future cash flows, taking into account market observable yield curves and forward exchange rates at each reporting date. Cross
currency swap contract and interest rate swap contracts are included in Level 2 (2020: Level 2) of the fair value hierarchy.
The carrying amounts of net derivative assets are expected to be settled as below:
2021 2020
HK$’M HK$’M
89 143
At 31 March 2021 32 32
At 1 April 2019 8 8
Change in fair value of hedging instrument recognised
in other comprehensive income (58) (58)
Reclassified from other comprehensive income to
consolidated income statement (38) (38)
2021 2020
HK$’M HK$’M
Trade payables 58 80
Receipts in advance 401 310
Accruals 2,045 2,250
2,504 2,640
The carrying amounts of these payables approximate their fair values and are expected to be settled as below:
2021 2020
HK$’M HK$’M
2,504 2,640
The ageing of trade payables, presented based on the due date, is as follows:
2021 2020
HK$’M HK$’M
0–30 days 42 55
31–90 days 6 13
Over 90 days 10 12
58 80
27 Units in Issue
2021 2020
Number of units Number of units
Pursuant to the general mandate granted to the Manager by the Unitholders, the Manager (on behalf of Link)
bought back a total of 6,000,000 units (2020: 51,900,500 units) at an aggregate price of HK$379 million (2020:
HK$4,240 million). All units bought back were cancelled during the year.
During the year ended 31 March 2021, the Manager issued and allotted 29,964,480 units in total pursuant to the
distribution reinvestment scheme in respect of the interim distribution for the six months ended 30 September
2020 and the final distribution for the financial year ended 31 March 2020.
Closing price of the units as at 31 March 2021 was HK$70.80 (2020: HK$65.70) per unit. Based on 2,081,862,866
units in issue as at 31 March 2021 (2020: 2,057,898,386 units), market capitalisation was HK$147,396 million
(2020: HK$135,204 million).
28 Reserves
Earnings
retained for
exchange and
cash flow
Other Hedging Exchange hedge Total
reserve reserve reserve adjustments reserves
HK$’M HK$’M HK$’M HK$’M HK$’M
– 120 – – 120
– – 2,049 – 2,049
28 Reserves (Continued)
Earnings
retained for
exchange and
cash flow
Other Hedging Exchange hedge Total
reserve reserve reserve adjustments reserves
HK$’M HK$’M HK$’M HK$’M HK$’M
– (96) – – (96)
Notes:
(i) Amount transferred to the consolidated income statement in respect of cash flow hedges was included in “Finance costs” (Note 9).
(ii) The amount represented earnings retained for the year to offset the exchange reserve and cash flow hedging reserve movements.
2021 2020
HK$’M HK$’M
Amount
Interest Derivative due to non–
bearing Convertible financial controlling
liabilities bonds Accruals instruments interest Total
HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M
Total changes from financing activities 3,169 (65) (764) (26) (29) 2,285
Non–cash changes
Changes in fair values of cash flow
hedges – – – (63) – (63)
Finance costs (22) 157 734 143 96 1,108
Exchange adjustments and others 799 – 1 – – 800
Amount
Interest Derivative due to non–
bearing Convertible financial controlling
liabilities bonds Accruals instruments interest Total
HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M
Total changes from financing activities 6,155 3,942 (843) 36 114 9,404
Non–cash changes
Changes in fair values of cash flow
hedges – – – 58 – 58
Finance costs 485 (32) 857 (441) 111 980
Exchange adjustments and others (169) – 6 – – (163)
30 Acquisition of Assets
On 19 December 2019, Link, through a wholly owned subsidiary, entered into a unit sales agreement and a
share sale agreement to acquire the entire issued units of Market Sub Trust and the entire issued shares of
Market Sub TC Pty Ltd, at a cash consideration of Australian Dollars 655 million (equivalent to approximately
HK$3,132 million) and Link incurred acquisition–related transaction costs of HK$190 million. The transaction was
completed on 7 April 2020. Market Sub Trust owns the 100 Market Street located at 100 Market Street, Sydney,
Australia.
On 24 July 2020, Link, through a wholly owned subsidiary, entered into a sales and purchase agreement to
acquire the entire issued share capital of 25 Cabot Square S.à r.l. and Cabot Square Retail S.à r.l. at a cash
consideration of British Pound Sterling 368 million (equivalent to approximately HK$3,751 million) and Link
incurred acquisition–related transaction costs of HK$28 million. The transaction was completed on 25 August
2020. 25 Cabot Square S.à r.l. and Cabot Square Retail S.à r.l. own The Cabot located at 25 Cabot Square,
Canary Wharf, London, United Kingdom.
The above acquisitions have been accounted for by the Group as acquisitions of assets as the entities acquired
by the Group do not constitute a business.
The assets and liabilities arising from the acquisitions are as follows:
100 Market
Street The Cabot Total
HK$’M HK$’M HK$’M
31 Capital Commitments
2021 2020
HK$’M HK$’M
HSBC Institutional Trust Services (Asia) Limited (the “Trustee”) * The Trustee of Link
The Hongkong and Shanghai Banking Corporation Limited and its subsidiaries Associates # of the Trustee
(excluding the Trustee and its proprietary subsidiaries) (the “HSBC Group”) *
Colliers International (Hong Kong) Limited (Note (i)) The current Principal Valuer of Link
Jones Lang LaSalle Limited (the “Former Principal Valuer”) (Note (ii)) The former Principal Valuer of Link
Jones Lang LaSalle Management Services Limited (Note (ii)) Associate # of the Former Principal Valuer
Beijing Jones Lang LaSalle Property Management Services Company Limited Shenzhen Associate # of the Former Principal Valuer
Branch (Note (ii))
Aedas Limited * Associate # of director
Aedas Beijing Limited * Associate # of director
Dah Sing Bank, Limited Associate # of director
DBS Bank (Hong Kong) Limited Associate # of director
* These connected parties are also considered as related parties of the Group.
#
“Associate” has the meaning ascribed to it under the REIT Code.
Notes:
(i) Colliers International (Hong Kong) Limited is the current Principal Valuer of Link who is responsible for the property valuation of Link as
at 31 March 2021. Colliers International (Hong Kong) Limited was appointed as the Principal Valuer of Link with effect from 17 November
2019.
(ii) Jones Lang LaSalle Limited was the former valuer of Link who was responsible for the property valuation of Link up till 30 September
2019. Jones Lang LaSalle Limited retired as the Principal Valuer of Link in accordance with the REIT Code on 17 November 2019 and
since then, Jones Lang LaSalle Limited and its associates ceased to be connected parties of Link.
2021 2020
HK$’M HK$’M
Trustee’s fee paid and payable to the Trustee (Note (ii)) (15) (23)
Transactions with the HSBC Group (Note (iii))
Interest expense and various financing charges to the HSBC Group on
interest bearing liabilities, cross currency swap contracts and interest
rate swap contracts (65) (61)
Rental income from the HSBC Group on leasing of retail units 35 38
Interest income from the HSBC Group on bank deposits 17 20
Transactions with the Principal Valuer (Notes (iii) and (iv))
Valuation fee (4) (4)
Consultancy services fees – (2)
Agency fee – (2)
Charges for provision of fitter services paid and payable to Jones Lang
LaSalle Management Services Limited (Note (iii)) – (9)
Property management fee paid and payable to Beijing Jones Lang LaSalle
Property Management Services Company Limited Shenzhen Branch
(Note (iii)) – (13)
Architectural/renovation consultancy services fees paid and payable to
Aedas Limited (Notes (iii) and (v)) (1) (1)
Architectural/renovation consultancy services fees paid and payable to
Aedas Beijing Limited (Notes (iii) and (v)) (6) (5)
Rental income from Dah Sing Bank, Limited on leasing of retail units
(Notes (iii) and (vi)) 8 9
Interest expenses and various financing charges to Dah Sing Bank, Limited
(Notes (iii) and (vi)) (3) (1)
Interest expenses and various financing charges to DBS Bank (Hong Kong)
Limited (Notes (iii) and (vii)) (1) –
Notes:
(i) All connected/related party transactions were carried out in accordance with the terms of the relevant agreements governing the
transactions and in the ordinary course of business.
(ii) The Trustee is entitled to receive an annual trustee’s fee (calculated and paid monthly) at rates ranging from 0.006% per annum to
0.015% per annum (2020: ranging from 0.008% per annum to 0.03% per annum) of the latest property value as determined in the
latest annual valuation report of an independent property valuer recommended by the Manager and appointed by the Trustee for and on
behalf of Link from time to time, subject to a minimum of HK$150,000 per month.
(iii) The transactions were entered into at arm’s length on normal commercial terms and in compliance with Link’s procurement policy.
(iv) Colliers International (Hong Kong) Limited was appointed as the Principal Valuer of Link with effect from 17 November 2019. The Former
Principal Valuer, Jones Lang LaSalle Limited, was responsible for the property valuation of Link up till the period ended 30 September
2019. Valuation fee for the year ended 31 March 2021 of HK$4 million were paid and payable to Colliers International (Hong Kong)
Limited (2020: HK$3 million and HK$1 million were paid to Colliers International (Hong Kong) Limited and Jones Lang LaSalle Limited
respectively). Consultancy services fees of HK$0.3 million and agency fee of HK$0.4 million were paid to Colliers International (Hong
Kong) Limited (2020: Consultancy services fees of HK$2 million and agency fee of HK$2 million were paid to Jones Lang LaSalle
Limited).
(v) Aedas Limited and Aedas Beiling Limited are associates of Mr Ian Keith GRIFFITHS.
(vi) Dah Sing Bank, Limited is an associate of Mr Blair Chilton PICKERELL.
(vii) DBS Bank (Hong Kong) Limited is an associate of Ms Nancy TSE Sau Ling.
152 Link Real Estate Investment Trust
Governance, Disclosures and Financial Statements | Notes to the Consolidated Financial Statements
2021 2020
HK$’M HK$’M
2021 2020
HK$’M HK$’M
Fees 10 9
Basic salaries, allowances and other benefits 100 128
Long–term incentive schemes awards 13 33
123 170
2021 2020
Number of Number of
Emolument bands (Note (i)) individuals individuals
HK$1,000,001–HK$3,000,000 – 1
HK$3,000,001–HK$5,000,000 3 2
HK$5,000,001–HK$7,000,000 4 2
HK$7,500,001–HK$8,000,000 1 2
HK$8,500,001–HK$9,000,000 2 –
HK$9,500,001–HK$10,000,000 – 1
HK$10,000,001–HK$10,500,000 – 1
HK$11,000,001–HK$11,500,000 – 1
HK$13,500,001–HK$14,000,000 – 1(b)
HK$14,000,001–HK$14,500,000 1(b) –
HK$31,500,001–HK$32,000,000 1 (a)
–
HK$73,500,001–HK$74,000,000 - 1(a)
Notes:
(i) The calculation of the total remuneration for the emolument bands is based on the value of the long–term incentive awards recognised
during the year and the short term remuneration paid and recognised during the year.
(ii) Emoluments paid and recognised for the Executive Directors, Mr George Kwok Lung HONGCHOY(a) and Mr Kok Siong NG(b). Mr. Kok
Siong NG was appointed as an Executive Director with effect from 1 February 2020. Out of the total remuneration awarded to Mr.
Kok Siong NG for the year ended 31 March 2020, only 2 month’s remuneration was attributable to services provided as an Executive
Director. Details are set out in the “Remuneration Awarded to Executive Directors” section on pages 26 to 27. The respective
emoluments include the portion of the long-term incentive schemes recognised for the year, which the details are set out in the “Long-
term Incentive Schemes” section on pages 78 to 81. The remaining is the paid short-term remuneration.
(iii) Included one resigned (2020: one retired) senior management staff.
2021 2020
HK$’M HK$’M
25 32
2021 2020
HK$’M HK$’M
18,934 17,570
Most of the operating leases are on fixed terms and for terms of three years (2020: three years).
34 Principal Subsidiaries
Link held the following principal subsidiaries as at 31 March 2021:
Particulars of
Place of establishment and issued share
kind of legal entity/ capital/registered
Name place of operations Principal activities capital Interest held
Directly held:
The Link Holdings Limited Cayman Islands, limited liability Investment holding US$1 100%
company/Hong Kong
Link Asset Management Limited Hong Kong, limited liability company/ Asset management HK$22,000,000 100%
Hong Kong
Indirectly held:
Afford Limited Hong Kong, limited liability company/ Investment holding HK$160,539,360 100%
Hong Kong
Atlantic Best Limited Hong Kong, limited liability company/ Investment holding HK$2 100%
Hong Kong
保怡物業管理(深圳)有限公司 People’s Republic of China, limited Property holding and US$39,500,000 100%
(Baoyi Property Management (Shenzhen) liability company/People’s Republic leasing
Company Limited) of China
北京亞騰房地產經營管理有限公司 People’s Republic of China, limited Property holding and US$162,500,000 100%
(Beijing Yateng Real Estate Management liability company/People’s Republic leasing
Company Limited) of China
Cabot (HK) Limited Hong Kong, limited liability company/ Investment holding HK$1 100%
Hong Kong
Cabot Square Retail S.à r.l. Luxembourg, limited liability company/ Property holding and GBP11,000 100%
United Kingdom leasing
Century Land Investment Limited Hong Kong, limited liability company/ Property development HK$1 60%
Hong Kong
China East Investment Limited Hong Kong, limited liability company/ Investment holding HK$5,000 100%
Hong Kong
益颯美置業(天津)有限公司 People’s Republic of China, limited Property holding and RMB1,242,300,418 100%
(ECM Property Holding (Tianjin) Co., Ltd.) liability company/People’s Republic leasing
of China
First Venture R.E. Limited Hong Kong, limited liability company/ Investment holding HK$1 100%
Hong Kong
Great Land (HK) Limited Hong Kong, limited liability company/ Property holding and HK$1,000,000 100%
Hong Kong leasing
廣州牽晴匯房地產有限公司 People’s Republic of China, limited Property holding and RMB600,000,000 100%
(Guangzhou Qian Qing Hui Real Estate liability company/People’s Republic leasing
Company Limited) of China
Link CB Limited (Formerly known British Virgin Islands, limited liability Financing US$1 100%
as Link 2019 CB Limited) company/Hong Kong
Link Monte (HK) Limited Hong Kong, limited liability company/ Property holding and HK$1 100%
Hong Kong leasing
Particulars of
Place of establishment and issued share
kind of legal entity/ capital/registered
Name place of operations Principal activities capital Interest held
The Manager considers the non–controlling interest in respect of Century Land Investment Limited is not
material to the Group.
The Manager is of the opinion that a complete list of the particulars of all subsidiaries will be of excessive length
and therefore the above list contains only the particulars of the subsidiaries which principally affect the results
or assets and liabilities of the Group.
Valuation Report
25 May 2021
Dear Sirs,
Valuer’s Interest
We hereby certify that Colliers International (Hong Kong) Limited is independent of the scheme, the trustee,
the management company and each of the significant holders of the scheme, as per the Code on Real Estate
Investment Trust issued by the Securities and Futures Commission (SFC).
Basis of Valuation
The valuation has been carried out in accordance with the prevailing valuation standards, namely, the Royal
Institution of Chartered Surveyors’ RICS Valuation – Global Standards, incorporating the International Valuation
Standards Council’s (IVSC) International Valuation Standards, the Hong Kong Institute of Surveyors’ HKIS Valuation
Standards 2020 and Chapter 6 of the Code on Real Estate Investment Trusts (REIT Code) issued by the Securities
and Futures Commission in December 2020.
Our valuation is made on the basis of market value which is defined by the IVSC (and the RICS and HKIS) as the
estimated amount for which an asset or liability should exchange on the date of valuation between a willing buyer
and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion.
Our valuation represents a 100% interest in the Portfolio and does not reflect shareholder’s interest in the company
owning the property interest.
Measurements
We have assumed that the areas shown on the documents and plans provided to us by LAML are correct. All
documents and contracts have been used for reference only and all dimensions, measurements and areas are
therefore approximations. No on-site measurements have been taken to verify the correctness of the areas.
Valuation Methodologies
We have relied on the Income Capitalisation Approach as the primary approach to arrive at the market values of the
Properties and cross-checked with the Direct Comparison Approach.
PRC Properties
Office : 4.25%
Retail : 4.25% – 4.75%
Car Park : 4.25% – 4.75%
UK Property
Office : 5.24%
Australia Property
Office : 4.50%
Valuation Assumptions
Our valuations have been made on the assumption that the Properties are to be sold in the open market in their
existing state, subject to existing tenancies or otherwise with the benefit of vacant possession, without the benefit
of deferred term contracts, leasebacks, joint ventures, management agreements or any similar arrangements which
could affect the value of the Properties.
We have valued each of the Properties individually. We have not allowed any bulk discount for the sale of the
Properties as a portfolio to a single party, nor have we taken into account any effect on values that might arise if the
Properties were all to be offered for sale at one and the same time.
No allowances have been made for any charges, mortgages or amounts owing on any of the Properties nor for any
expenses or taxation which may be incurred in effecting a sale. We have assumed that the Properties are free from,
and clear of, any and all charges, liens and encumbrances of an onerous nature likely to affect value.
We have assumed that the Properties have been constructed, occupied and used in full compliance with all
ordinances. We have further assumed that, for any use of the Properties upon which this report is based, any and all
required licences, permits, certificates, and authorisations have been obtained.
Site Investigation
We have not carried out investigations to determine the subsoil conditions nor have we tested utility services to the
Properties. Our valuation has been prepared on the assumption that these are acceptable and appropriate to the
respective developments. No structural surveys have been undertaken, but in the course of our inspections, we have
not noted any defects. We are not, however, able to report whether the Properties are free of rot, infestation or any
other structural defects. We have assumed that the Properties are free of contamination.
Telecommunication Facilities
We have assumed that all telecommunication facilities at the Properties are constructed, occupied and used in full
compliance with all ordinances and all necessary approvals have been obtained from the relevant authorities.
Acknowledgement of Information
All investigations have been conducted independently and without influence from any third parties. We have relied to
a very considerable extent on the information provided by the LAML and have accepted advice given to us on such
matters as identification of the Properties, particulars of planning approvals, statutory notices, easements, tenure,
occupation, floor plans and areas, tenancy schedules and all other relevant matters.
In the course of our valuation, we have also made reference to, inter alia, the following information provided by LAML:
Hong Kong Properties
1. Tenancy Schedule as at 31 March 2021 and subsequent updates;
2. Other Retail and Car Park incomes from March 2020 to February 2021;
3. Retail Actual Income from March 2020 to February 2021;
4. Office Actual Income from March 2020 to February 2021 (The Quayside);
5. Operating Expenses from March 2020 to February 2021;
6. CAPEX schedules as at 31 March 2021 and subsequent updates;
7. Asset Enhancement Plans & layout plans of the Properties, if any; and
8. Approved Building Plans for the commercial developments of The Quayside and 700 Nathan Road dated 2 August
2018 and 12 October 2017 respectively.
PRC Properties
1. Tenancy Schedule as at 31 March 2021 and subsequent updates;
2. Other Retail and Car Park incomes from March 2020 to February 2021;
3. Retail Actual Income from March 2020 to February 2021;
4. Office Actual Income from March 2020 to February 2021 (Link Square, Shanghai);
5. Operating Expenses from March 2020 to February 2021; and
6. Relevant title documents.
UK Property
1. Tenancy Schedule as at 31 March 2021 and subsequent updates;
2. Other Retail and Car Park income from March 2020 to February 2021; and
3. CAPEX schedules as at 31 March 2021 and subsequent updates.
Australia Property
1. Tenancy Schedule as at 31 March 2021 and subsequent updates;
2. Office, ancillary retail and Car Park Actual Income from April 2020 to February 2021;
3. CAPEX schedules as at 31 March 2021 and subsequent updates;
4. Operating Expenses from March 2020 to February 2021, and
5. Budget Outgoing Recoveries and Outgoings from April 2020 to March 2021.
Summary of Values
A summary of the following is shown in the attached Schedule of Values:
i) Retail internal floor Area (IFA), number of car parking spaces, assessed market values, capitalisation rate adopted
in the Income Capitalisation Approach and initial yield for the Hong Kong Properties;
ii) Gross Floor Area (GFA) and assessed market value for The Quayside;
iii) Retail and/or office GFA, number of car parking spaces, assessed market values, capitalisation rate adopted in
Income Capitalisation Approach and initial yield for the PRC Properties;
iv) Office Net Lettable Area (NLA), number of car parking spaces, assessed market values and capitalisation rate
adopted in Income Capitalisation Approach for the UK Property; and
v) Office Net Lettable Area (NLA), assessed market values and capitalisation rate adopted in Income Capitalisation
Approach for the Australia Property.
Valuation
1. Hong Kong Properties
We are of the opinion that the aggregate market value of the unencumbered leasehold interest in the Hong
Kong Properties, subject to the existing tenancies and conditions and assumptions set out in this report, as at
31 March 2021, is in the sum of
HKD165,039,900,000
(HONG KONG DOLLARS ONE HUNDRED AND SIXTY-FIVE BILLION THIRTY-NINE
MILLION NINE HUNDRED THOUSAND)
Initial yield: 4.60%
The values ascribed to the respective retail, car parking elements and The Quayside are as follows:
The Quayside
Market value is in the sum of
HKD9,845,100,000
(HONG KONG DOLLARS NINE BILLION EIGHT HUNDRED AND FORTY-FIVE MILLION
ONE HUNDRED THOUSAND)
2. PRC Properties
We are of the opinion that the market value of the unencumbered leasehold interests in the PRC Properties,
subject to the existing tenancies and assumptions set out in this report, as at 31 March 2021, is in the sum of
RMB22,960,000,000
(RENMINBI TWENTY TWO BILLION NINE HUNDRED AND SIXTY MILLION)
Initial yield: 4.00%
3. UK Property
Market value is in the sum of
GBP376,600,000
(GREAT BRITISH POUND THREE HUNDRED AND SEVENTY-SIX MILLION SIX HUNDRED
THOUSAND)
4. Australia Property
Market value is in the sum of
AUD683,000,000
(AUSTRALIAN DOLLARS SIX HUNDRED AND EIGHTY-THREE MILLION)
Conversion Factors
Conversion factors used in this report are:
Schedule of Values
Hong Kong Properties
84 Retail and Car Park within Ching Wah Court 44 Sun Chui Shopping Centre
76 Retail and Car Park within Hong Pak Court 2 T Town
120 Retail and Car Park within Hong Shui Court 47 Tai Hing Commercial Centre
88 Retail and Car Park within Hong Yat Court 18 Tai Wo Plaza
117 Retail and Car Park within Hung Hom Estate 38 Tai Yuen Commercial Centre
82 Retail and Car Park within Ko Chun Court 29 Tak Tin Plaza
125 Retail and Car Park within Ko Yee Estate 8 Temple Mall North
106 Retail and Car Park within Lok Nga Court 5 Temple Mall South
79 Retail and Car Park within Lok Wah (South) Estate 126 The Quayside
102 Retail and Car Park within Nam Cheong Estate 17 Tin Chak Shopping Centre
104 Retail and Car Park within Sau Mau Ping (III) Estate 20 Tin Shing Shopping Centre
91 Retail and Car Park within Tin Wah Estate 25 Tin Shui Shopping Centre
118 Retail and Car Park within Tin Wang Court 65 Tin Tsz Shopping Centre
85 Retail and Car Park within Tin Yat Estate 21 Tin Yiu Plaza
89 Retail and Car Park within Tong Ming Court 4 TKO Gateway
92 Retail and Car Park within Tsui Wan Estate 7 TKO Spot
103 Retail and Car Park within Tsz Oi Court 42 Tsui Ping North Shopping Circuit
71 Retail and Car Park within Tung Tau Estate 3 Tsz Wan Shan Shopping Centre
81 Retail and Car Park within Wo Ming Court 55 Un Chau Shopping Centre
98 Retail and Car Park within Yan Ming Court 58 Wan Tsui Commercial Complex
111 Retail and Car Park within Ying Fuk Court 12 Wo Che Plaza
66 Sam Shing Commercial Centre 13 Yat Tung Shopping Centre
9 Sau Mau Ping Shopping Centre 19 Yau Mei & Ko Cheung (Lei Yue Mun Plaza)
27 Sha Kok Commercial Centre 73 Yin Lai Court Shopping Centre
33 Shun Lee Commercial Centre 61 Yiu On Shopping Centre
72 Shun On Commercial Centre 69 Yiu Tung Shopping Centre
23 Siu Sai Wan Plaza 37 Yu Chui Shopping Centre
43 Stanley Plaza
PRC Properties
UK Property
No. Properties
Australia Property
No. Properties
Schedule of Values
Hong Kong Properties
1 Lok Fu Place
361,659 793 317.7 4.22% 6,781.3 4.68%
Brief Description: Lok Fu Place, (formerly Lok Fu Plaza), completed in 1983–1991, comprises
• Commercial centre I – retail
• Commercial centre II – retail
• Car park I
• Car park II
• Car park and commercial accommodation within Wang Shun House, Wang Tat House and
Wang Yat House
• Associated associated areas within Lok Fu Estate
• Number of Car Park Spaces: 793
2 T Town
206,447 1,177 259.1 4.03% 5,517.9 4.69%
Brief Description: T Town, (formerly Chung Fu Plaza), completed in 1999 and 2000, comprises
• Phase 1 commercial and car parking building
• Phase 2 commercial building
• Tin Chung Court Ancillary Facilities Block – ground and first floor kindergarten and day nursery
facilities.
• Asset Enhancement work (AE) in progress as at the valuation date
• IFA after AE for letting: 206,649 sq ft
• IFA after AE for letting: 206,447 sq ft
Number of Car Park Spaces: 1,177
Brief Description: Tsz Wan Shan Shopping Centre, completed in 1997, comprises
• Commercial/car park block
• Multi storey car park
• Car park block A
• Car park block B
• Lift tower
• Ancillary facilities block – commercial/car park accommodation
• Open car parks and associated areas within Tsz Lok Estate
• Number of Car Park Spaces: 940
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6442–81,055/481,546 equal and undivided shares in the
Remaining Portion
Government lease: 50 years commencing 8 October 2007
4 TKO Gateway
165,935 623 191.3 4.00% 4,024.7 4.75%
Brief Description: TKO Gateway, (formerly Hau Tak (II) Shopping Centre), completed in 1993, comprises
• East Wing – multi storey car park
• West wing – multi storey car park
• Open car parks and associated areas within Hau Tak Estate
Number of Car Park Spaces: 623
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 99–49,962/324,918 equal undivided shares
Government lease: 50 years commencing 14 October 2005
Brief Description: Temple Mall South, (formerly Wong Tai Sin Plaza), completed in 1982 and 1983, comprises
• Multi storey commercial/car park accommodation
• Commercial/car park block
• Car park block
• Commercial blocks – cooked food stalls
• Commercial/car park accommodation within Lung Kwong House, Lung Fai House, Lung Lok
House, Lung On House
• Open car parks and associated areas within Lower Wong Tai Sin II Estate
Number of Car Park Spaces: 688
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6438–51,200/323,235 equal and undivided shares
Government lease: 50 years commencing 17 May 2007
Brief Description: Kai Tin Shopping Centre, completed by two phases in 1999 and 2003, comprises
• Commercial/car park block
• Multi storey commercial/car park accommodation
• Car parks and associated areas within Kai Tin Estate
• Number of Car Park Spaces: 461
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6481–65,207/256,946 equal and undivided shares
Government lease: 50 years commencing 29 September 2009
7 TKO Spot
130,649 1,280 180.1 4.24% 3,841.9 4.69%
Brief Description: TKO Spot (formerly known as Sheung Tak Shopping Centre), completed in 1998, comprises
• Commercial/car park block
• Car Park A
• Car Park B
• Car Park C
• Commercial/car park accommodation G/F of Sheung Mei House
• Open Car parks and associated areas within Sheung Tak Estate
• Number of Car Park Spaces: 1,280
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 98–95,092/467,545 equal and undivided shares
Government lease: 50 years commencing 26 March 2007
Brief Description: Temple Mall North, (formerly Lung Cheung Plaza), completed in 2001, comprises
• Commercial/car parking and associated areas within Upper Wong Tai Sin Estate
Number of Car Park Spaces: 473
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6439–53,974/311,854 equal and undivided shares
Government lease: 50 years commencing 23 February 2007
Brief Description: Sau Mau Ping Shopping Centre, completed in 2002, comprises
• Commercial/car park block
• Multi storey car park A and ancillary facilities building
• Associated areas within Sau Mau Ping Estate
Number of Car Park Spaces: 611
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6453–57,670/833,450 equal and undivided shares and a
portion of 10/833,450 equal and undivided shares of and in the Remaining Portion
Government lease: 50 years commencing 23 February 2007
12 Wo Che Plaza
170,612 828 142.2 4.13% 2,994.5 4.75%
Brief Description: Choi Ming Shopping Centre, completed in 2001 and 2003, comprises
• Commercial/car park block
• Carport building
• Covered car parking Spaces – Choi Ming Court
• Extension block Kin Ming Estate
Number of Car Park Spaces: 765
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 82–44,614/346,996 equal and undivided shares, and
Tseung Kwan O Town Lot No. 109–39,133/420,644 equal and undivided shares
Government lease: 50 years commencing 4 May 2001 (TKOTL No. 82) and 15 March 2010 (TKOTL
No. 109)
15 Butterfly Plaza
174,169 313 151.1 4.53% 2,894.0 5.22%
18 Tai Wo Plaza
125,769 454 125.0 4.39% 2,636.4 4.74%
Brief Description: Lei Yue Mun Plaza – Yau Mei and Ko Cheung, completed in 2001, comprises
• Commercial associated areas within blocks J, K and L, Yau Mei Court
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6459–19,357/392,161 equal and undivided shares
Government lease: 50 years commencing 3 June 2005
24 Fu Tung Plaza
104,879 537 117.0 4.45% 2,177.6 5.37%
30 Oi Man Plaza
183,692 808 92.1 4.48% 1,873.7 4.91%
34 Homantin Plaza
101,179 299 82.8 4.43% 1,719.6 4.81%
Brief Description: Tsui Ping North Shopping Circuit, completed in 1990, comprises
• Commercial complex
• Car park block
• Integrated HA associated areas within Tsui Tsz House, Tsui Lau House, Tsui Pak House, Tsui
On House, Tsui Yue House and Tsui To House
• Open car parks within Tsui Ping (North) Estate
Number of Car Park Spaces: 421
Title Details: Held by: Link Properties Limited
Lot details: Kwun Tong Inland lot No. 754–31,542/345,220 equal and undivided shares
Government lease: 50 years commencing 24 January 2002
43 Stanley Plaza
98,382 411 71.7 4.19% 1,443.6 4.97%
Brief Description: Nam Cheong Place, (formerly known as Fu Cheong Shopping Centre), completed in 2002,
comprises
• Multi storey commercial accommodation
• Ancillary facilities block – integrated commercial/car parking accommodation
• Multi storey car park accommodation
Number of Car Park Spaces: 547
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6437–31,469/355,647 equal and undivided shares
Government lease: 50 years commencing 17 September 2005
Brief Description: Mei Lam Shopping Centre, (formerly Mei Lam Commercial Centre), completed in 1981, comprises
• Commercial complex
• Multi storey car park
• Commercial block – cooked food stalls
• Portions of Integrated HA accommodation – shop in Mei Fung House
• Asset Enhancement work (AE) in progress as at the valuation date
• IFA before AE for letting: 75,843 sq ft
• IFA after AE for letting: 75,884 sq ft
Number of Car Park Spaces: 375
Title Details: Held by: Link Properties Limited
Lot details: Sha Tin Town Lot No. 558–29,125/273,313 equal and undivided shares
Government lease: 50 years commencing 22 March 2010
60 Maritime Bay
41,017 0 47.1 4.00% 1,039.7 4.53%
Brief Description: Tung Tau Estate – Retail and Car Park, completed in 1982, comprises
• Commercial complex
• Car park block
• Shop units in front of the commercial complex
• Shops in Cheung Tung House, Hong Tung House, On Tung House, Yue Tung House and Wong
Tung House
• Open car parks within Tung Tau Estate
Number of Car Park Spaces: 493
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6413–16,942/349,186 equal and undivided shares
Government lease: 50 years commencing 24 January 2002
Brief Description: Yin Lai Court Shopping Centre, completed in 1991, comprises
• Commercial/car park building
Number of Car Park Spaces: 150
Title Details: Held by: Link Properties Limited
Lot details: Kwai Chung Town Lot No. 389 – Section A
Government lease: For a term commencing 21 September 1990 to 30 June 2047
Brief Description: Kin Ming Estate – Car Park, completed in 2003, comprises
• Car parking in the commercial/car park building
• Car parking spaces in Kin Ming Estate
Number of Car Park Spaces: 763
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 109–39,133/420,644 equal and undivided shares
Government lease: 50 years commencing 15 March 2010
Brief Description: Cheung On Estate – Retail and Car Park, completed in 1988, comprises
• Car park 1
• Car park 2
• Shop units and medical centre in On Tao House
Number of Car Park Spaces: 484
Title Details: Held by: Link Properties Limited
Lot details: Tsing Yi Town Lot No. 160 – Sections D and F, and 403/293,522 equal and undivided
shares of and in the Remaining Portion
Government lease: 50 years commencing 8 April 1998
Brief Description: Hong Pak Court – Retail and Car Park, completed in 1993, comprises
• Car park building incorporating two kindergarten units
Number of Car Park Spaces: 549
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6095 – Section A
Government lease: For a term commencing 25 September 1991 to 30 June 2047
Brief Description: Cheung Wang Estate – Retail and Car Park, completed in 2001, comprises
• Multi storey car park
• Commercial car park block
• Associated areas and open car parks
Number of Car Park Spaces: 333
Title Details: Held by: Link Properties Limited
Lot details: Tsing Yi Town Lot No. 178–13,010/259,640 equal and undivided shares
Government lease: 50 years commencing 25 March 2009
Brief Description: Tin Yuet Estate – Car Park, completed in 2000, comprises
• Car park building
Number of Car Park Spaces: 560
Title Details: Held by: Link Properties Limited
Lot details: Tin Shui Wai No. 41 – portion of 50,802/297,568 equal and undivided shares
Government lease: 50 years commencing 8 June 2010
Brief Description: Lok Wah (South) Estate – Retail and Car Park, completed in 1982, comprises
• Market stalls at Chin Wah House
• Car park block
• Cooked food stalls near On Wah House
• Shop units in On Wah House
• Associated areas and open car parks
Number of Car Park Spaces: 226
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6460–13,231/513,788 and portion of 667/513,788 equal
and undivided shares
Government lease: 50 years commencing 9 September 2008
Brief Description: Wo Ming Court – Retail and Car park, completed in 1999, comprises
• Car park building
• Kindergarten unit in Wo Yat House
Number of Car Park Spaces: 379
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 52 – Section A and 728/82,796 equal and undivided
shares of and in the Remaining Portion
Government lease: 50 years commencing 28 November 1997
Brief Description: Ko Chun Court, Retail and Car Park, completed in 1993, comprises
• Commercial/car park building
• Kindergarten in Chun Moon House
Number of Car Park Spaces: 323
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6189 – Section A and 530/81,791 equal and undivided
shares of and in the Remaining Portion
Government lease: For a term commencing 3 June 1993 to 30 June 2047
Brief Description: Ching Wang Court – Car Park, completed in 2001, comprises
• Car park building
Number of Car Park Spaces: 348
Title Details: Held by: Link Properties Limited
Lot details: Tsing Yi Town Lot No. 137–2,516/36,665 equal and undivided shares
Government lease: 50 years commencing 20 April 1999
Brief Description: Tin Yat Estate – Retail and Car Park, completed in 2001, comprises
• Car park building incorporating a kindergarten
• Open car parks
Number of Car Park Spaces: 446
Title Details: Held by: Link Properties Limited
Lot details: Tin Shui Wai Town Lot No. 42–15,485/226,221 equal and undivided shares
Government lease: 50 years commencing 28 October 2008
Brief Description: Tin King Estate – Car Park, completed in 1989, comprises
• Car park block
• Open car parks
Number of Car Park Spaces: 380
Title Details: Held by: Link Properties Limited
Lot details: Tuen Mun Town Lot No. 444–4,036/197,161 equal and undivided shares
Government lease: 50 years commencing 18 March 1999
Brief Description: Tsz Man Estate – Car Park, completed in 1994, comprises
• Car park building
• Associated areas
Number of Car Park Spaces: 364
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6441–9,121/139,291 equal and undivided shares of and in
the Remaining Portion
Government lease: 50 years commencing 28 February 2008
Brief Description: Hong Yat Court – Retail and Car park, completed in 1993, comprises
• Car park building incorporating a kindergarten
Number of Car Park Spaces: 355
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6329–4,582/99,200 equal and undivided shares
Government lease: 50 years commencing 5 February 2001
Brief Description: Tong Ming Court – Retail and Car Park, completed in 1999, comprises
• Car park building incorporating shops and a children and youth centre
• Day nursery in Tong Wong House
• Kindergarten in Tong Fu House
Number of Car Park Spaces: 291
Title Details: Held by: Link Properties Limited
Lot details: Tseung Kwan O Town Lot No. 54 – Section A and 1,153/98,512 equal and undivided
shares of and in the Remaining Portion
Government lease: For a term commencing 26 June 1997 to 30 June 2047
Brief Description: Wah Lai Estate – Car park, completed in 2001, comprises
• Car park building
Number of Car Park Spaces: 411
Title Details: Held by: Link Properties Limited
Lot details: Kwai Chung Town Lot No. 445–21,700/102,614 equal and undivided shares of and in
the Remaining Portion of Section A
Government lease: 50 years commencing 25 May 2001
Brief Description: Tin Wah Estate – Retail and Car Park, completed in 1999, comprises
• Ancillary facilities block shops and car parking spaces
Number of Car Park Spaces: 287
Title Details: Held by: Link Properties Limited
Lot details: Tin Shui Wai Town Lot No. 43–11,225/236,423 equal and undivided shares
Government lease: 50 years commencing 12 May 2010
Brief Description: Tsui Wan Estate – Retail and Car Park, completed in 1993, comprises
• Retail units – free standing
• Commercial accommodation
• Car park block
• Open car parks
Number of Car Park Spaces: 182
Title Details: Held by: Link Properties Limited
Lot details: Chai Wan Inland Lot No. 166–3,254/123,068 equal and undivided shares
Government lease: 50 years commencing 18 March 1999
Brief Description: Ning Fung Court – Car Park, completed in 2001, comprises
• Car park building
Number of Car Park Spaces: 299
Title Details: Held by: Link Properties Limited
Lot details: Kwai Chung Town Lot No. 477–3,072/78,707 equal and undivided shares
Government lease: 50 years commencing 15 October 1999
Brief Description: Wang Fuk Court – Car Park, completed in 1983, comprises
• Car park building
Number of Car Park Spaces: 408
Title Details: Held by: Link Properties Limited
Lot details: Tai Po Town Lot No. 27 – Section A
Government lease: For a term of 99 years less the last 3 days, commencing 1 July 1898, statutorily
extended to 30 June 2047
Brief Description: Ming Nga Court – Car Park, completed in 1985, comprises
• Car park building
Number of Car Park Spaces: 345
Title Details: Held by: Link Properties Limited
Lot details: Tai Po Town Lot No. 36 – Section A
Government lease: 99 years less the last 3 days commencing 1 July 1898, statutorily extended to
30 June 2047
Brief Description: Ying Ming Court – Car Park, completed in 1989, comprises
• Car port building
Number of Car Park Spaces: 274
Title Details: Held by: Link Properties Limited
Lot details: Junk Bay Town Lot No. 4 – Section A
Government lease: 99 years less the last 3 days commencing 1 July 1898, statutorily extended to
30 June 2047
Brief Description: Yan Ming Court – Retail and Car Park, completed in 1990, comprises
• Commercial/car park centre
Number of Car Park Spaces: 262
Title Details: Held by: Link Properties Limited
Lot details: Junk Bay Town Lot No. 9 – Section A
Government lease: For a term commencing 22 January 1987 to 30 June 2047
Brief Description: Tsui Ping South Estate – Car Park, completed in 1990, comprises
• Car park block
• Open car park
Number of Car Park Spaces: 229
Title Details: Held by: Link Properties Limited
Lot details: Kwun Tong Inland Lot No. 755–6,785/291,576 equal and undivided shares of and in the
Remaining Portion
Government lease: 50 years commencing 27 November 2009
Brief Description: Nam Cheong Estate – Retail and Car Park, completed in 1989, comprises
• Car park block
• Shops in Cheong Shun House, Cheong Yat House, Cheong On House and Cheong Yin House
• Open car parks
Number of Car Park Spaces: 156
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6427–3,670/109,764 equal and undivided shares
Government lease: 50 years commencing 17 August 2005
Brief Description: Tsz Oi Court – Retail and Car Park, completed in phases from 1997 to 2000, comprises
• Car park building incorporating a kindergarten
• Kindergarten in Phase III
Number of Car Park Spaces: 199
Title Details: Held by: Link Properties Limited
1. Lot details: New Kowloon Inland Lot No. 6211 – Section A
Government lease: for a term commencing 9 June 1995 to 30 June 2047
2. Lot details: New Kowloon Inland Lot No. 6265–699/113,761 equal and undivided shares
Government lease: 50 years commencing 7 May 1999
104 Retail and Car Park within Sau Mau Ping (III) Estate
1,507 205 6.7 4.54% 129.8 5.13%
Brief Description: Sau Mau Ping (III) Estate – Retail and Car Park, completed in 1996, comprises
• Car park block incorporating a ground floor retail unit
Number of Car Park Spaces: 205
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6453–7,222/833,450 equal and undivided shares of and
in the Remaining Portion
Government lease: 50 years commencing 23 February 2007
Brief Description: Upper Ngau Tau Kok Estate – Car Park, completed in 2002, comprises
• Car park building
• Associated areas
Number of Car Park Spaces: 228
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6471–9,334/126,664 equal and undivided shares
Government lease: 50 years commencing 6 May 2008
Brief Description: Lok Nga Court – Retail and Car Park, completed in 1984, comprises
• Car park block incorporating an indoor sports hall
• Open car parks
Number of Car Park Spaces: 265
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 5969 – Section A and 1/28,952 equal and undivided
shares of and in the remaining portion
Government lease: 99 years less the last 3 days commencing 1 July 1898, statutorily extended to
30 June 2047
Brief Description: Sau Mau Ping (I) Estate – Car Park, completed in 2002, comprises
• Multi storey car park B
• Integrated commercial/car park accommodation
• Associated areas
Number of Car Park Spaces: 395
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6453–14,364/833,450 and portion of 10/833,450 equal
and undivided shares of and in the Remaining Portion
Government lease: 50 years commencing 23 February 2007
Brief Description: Ching Wang Court – Car Park, completed in 2001, comprises
• Car park building
Number of Car Park Spaces: 179
Title Details: Held by: Link Properties Limited
Lot details: Tsing Yi Town Lot No. 137–2,516/36,665 equal and undivided shares
Government lease: 50 years commencing 20 April 1999
Brief Description: Yee Kok Court – Car Park, completed in 1981, comprises
• Car park building
Number of Car Park Spaces: 240
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 5911 – Section A
Government lease: 99 years less the last 3 days commencing 1 July 1898, statutorily extended to
30 June 2047
Brief Description: Ying Fuk Court – Retail and Car Park, completed in 2001, comprises
• Car park block incorporating a shop unit
Number of Car Park Spaces: 163
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6266 – the Remaining Portion
Government lease: 50 years commencing 7 May 1999
Brief Description: San Wai Court – Car Park, completed in 1990, comprises
• Multi storey car park
Number of Car Park Spaces: 185
Title Details: Held by: Link Properties Limited
Lot details: Tuen Mun Town Lot No. 326 – Section A
Government lease: For a term commencing 3 January 1989 to 30 June 2047
Brief Description: Tin Yau Court – Car Park, completed in 1992, comprises
• Carport
Number of Car Park Spaces: 192
Title Details: Held by: Link Properties Limited
Lot details: Tin Shui Wai Town Lot No. 10, Section A
Government lease: For a term commencing 23 January 1992 to 30 June 2047
Brief Description: Yee Nga Court – Car Park, completed in 1993, comprises
• Car park
Number of Car Park Spaces: 159
Title Details: Held by: Link Properties Limited
Lot details: Tai Po Town Lot No. 120, Section A
Government lease: For a term commencing 22 May 1991 to 30 June 2047
Brief Description: King Lai Court – Car Park, completed in 1989, comprises
• Car park block
• Car parks
Number of Car Park Spaces: 158
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 5943 – Section A
Government lease: For a term commencing 4 March 1985 to 30 June 2047
Brief Description: Fung Lai Court – Car Park, completed in 1997, comprises
• Car park building
• Open car parks
Number of Car Park Spaces: 134
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6240–1,512/33,911 equal and undivided shares
Government lease: For a term commencing 7 June 1996 to 30 June 2047
Brief Description: Hung Hom Estate – Retail and Car Park, completed in 1999, comprises
• Car park block
• Shops in Hung Fai House
• Open car parks
Number of Car Park Spaces: 45
Title Details: Held by: Link Properties Limited
Lot details: Hung Hom Inland Lot No. 554–1,573/51,548 equal and undivided shares
Government lease: 50 years commencing 29 August 2008
Brief Description: Tin Wang Court – Retail and Car Park, completed in 1992, comprises
• Car park block incorporating a kindergarten
Number of Car Park Spaces: 79
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6131 – the Remaining Portion
Government lease: For a term commencing 21 May 1991 to 30 June 2047
Brief Description: Hong Keung Court – Car Park, completed in 1999, comprises
• Car park block
• Office (self use)
Number of Car Park Spaces: 93
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6239, the Remaining Portion
Government lease: 50 years commencing 8 January 1999
Brief Description: Hong Shui Court – Retail and Car Park, completed in 1999, comprises
• Car park block incorporating a commercial unit
Number of Car Park Spaces: 102
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6227, Section
A Government lease: 50 years commencing 14 May 1998
Brief Description: Kwai Hong Court – Car Park, completed in 1993, comprises
• Car park Building
Number of Car Park Spaces: 88
Title Details: Held by: Link Properties Limited
Lot details: Kwai Chung Town Lot No. 420–1,100/35,351 equal and undivided shares
Government lease: For a term commencing 1 March 1990 to 30 June 2047
Brief Description: Pang Ching Court – Car Park, completed in 1991, comprises
• Open car parks
Number of Car Park Spaces: 67
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6121 – Section A
Government lease: For a term commencing 21 September 1990 to 30 June 2047
123 Car Park within Lower Wong Tai Sin (I) Estate
0 70 1.5 4.10% 33.2 4.45%
Brief Description: Lower Wong Tai Sin (I) Estate – Car Park, completed in 1982, comprises
• Open car parks
Number of Car Park Spaces: 70
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6373–674/240,107 equal and undivided shares
Government lease: 50 years commencing 8 February 2001
Brief Description: Chuk Yuen (North) Estate – Car Park, completed in 1987, comprises
• Open car parking areas
Number of Car Park Spaces: 61
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6327–687/364,071 equal and undivided shares
Government lease: 50 years commencing 18 March 1999
Brief Description: Ko Yee Estate – Retail and Car Park, completed in 1994, comprises
• Car park block
• Commercial block
• Open car parks
Number of Car Park Spaces: 38
Title Details: Held by: Link Properties Limited
Lot details: New Kowloon Inland Lot No. 6480–1,518/80,343 equal and undivided shares
Government lease: 50 years commencing 8 January 2010
The above Schedule of Values is a summary of the Full Valuation Report, a comprehensive version (in English) of
which is available for inspection at the registered office of the Manager.
Schedule of Values
Brief Description: 700 Nathan Road, formerly known as Trade and Industry Department Tower,
renovated in 2017, comprises
• Retail Podium (T.O.P This is Our Place)
• Office Tower
Title Details: Held by: Link Monte Hong Kong Limited
Lot details: Kowloon Inland Lot No. 10470–24,750/25,000 equal and
undivided shares
Conditions of Grant No. 11419: 75 years commencing 30 May 1980
The above Schedule of Values is a summary of the Full Valuation Report, a comprehensive version (in English) of
which is available for inspection at the registered office of the Manager.
PRC Properties
The above Schedule of Values is a summary of the Full Valuation Report, a comprehensive version (in English) of
which is available for inspection at the registered office of the Manager.
UK Property
Brief Description: The Cabot, London, completed in 1991 with major refurbishment in 2020, comprises
• Office
• Retail Podium
• Basement Car Park
Number of Car Park Spaces: 65
Title Details: The Property is legally and beneficially held by 25 Cabot Square S.àr.l (Leasehold) and Cabot
Square Retail S.àr.l (Leasehold) The subject property is held freehold registered under title number
EGL 317234 and leasehold under title number EGL 513746.
Australia Property
Brief Description: 100 Market Street, Sydney, originally constructed in the 1970’s and substantially redeveloped in
2010/11 as part of the larger Westfield Sydney redevelopment, comprises
• An office building stratum forming part of the larger Westfield Sydney Complex
Title Details: The Property is held by Scentre Sydney No. 1 Pty Ltd (in 999,997/2,000,000 share), Scentre
Sydney No. 2 Pty Ltd (in 999,997/2,000,000 share) and Windsor Sub TC Pty Ltd (in 6/2,000,000)
as Tenants in Common (Freehold); and Market Sub TC Pty Ltd (Leasehold).
The above Schedule of Values is a summary of the Full Valuation Report, a comprehensive version (in English) of
which is available for inspection at the registered office of the Manager.
VERIFICATION STATEMENT
Scope and Objective
Hong Kong Quality Assurance Agency (“HKQAA”) has been commissioned by Link Asset Management Limited
(“LAML”) to undertake an independent verification for the sustainability related contents stated in its 2020/2021
Strategic Report and Sustainability Website (www.linkreit.com/en/sustainability/) (herein referred to as “the
Report” and “Website” respectively). The scope of this verification covered the sustainability performance data
and information of LAML for the period of 1st April 2020 to 31st March 2021, as defined in the Report and Website.
The Report and Website outlined LAML’s commitments, efforts and the overall sustainability performance for 127
properties across Hong Kong and 5 properties across Mainland China.
The aim of this verification was to provide reasonable assurance on the completeness and accuracy of the
information stated in the Report and Website., as well as the conformity of the Report and Website to the
International Integrated Reporting Framework (“Framework”). The Report and Website have also been prepared
in accordance with the Core Option of the Global Reporting Initiative Sustainability Reporting Standards (“GRI
Standards”), and the Environmental, Social and Governance Reporting Guide (“ESG Guide”) set out in Listing Rules
Appendix 27 of The Stock Exchange of Hong Kong Limited.
Level of Assurance and Methodology
The process applied in this verification was referenced to the International Standard on Assurance Engagement
3000 (ISAE 3000) – “Assurance Engagement Other Than Audits or Reviews of Historical Financial Information” issued
by the International Auditing and Assurance Standards Board. HKQAA’s verification procedure was designed for
devising opinions and conclusions to obtain a reasonable level of assurance. The extent of this verification process
undertaken covered the criteria set in the Framework, GRI Standards: Core Option and the ESG Guide.
The verification process included verifying the systems and processes implemented for collecting, collating and
reporting the sustainability performance data, reviewing relevant documentation, interviewing responsible personnel
with accountability for preparing the reporting contents and verifying selected representative sample of data and
information. Raw data and supporting evidence of the selected samples were also thoroughly examined during the
verification process.
Independence
LAML was responsible for the collection and preparation of the information. HKQAA was not involved in calculating
and compiling the reporting data, or in the content development of the Report and Website. HKQAA’s verification
activities were entirely independent from LAML.
Conclusion
Based on the verification results and in accordance with the verification procedures undertaken, HKQAA has
obtained reasonable assurance and is of the opinion that:
• The Report and Website have been prepared in accordance with the GRI Standards: Core Option and the ESG
Guide. The Report and Website also followed the Framework;
• The Report and Website illustrated the sustainability performance of LAML’s material aspects in a balanced,
comparable, clear and timely manner; and
• The data and information disclosed in the Report and Website were reliable and complete.
In conclusion, the Report and Website reflected truthfully the sustainability commitments, policies and performance
of LAML and disclosed transparently the sustainability performance of the company that was commensurate with its
sustainability context and materiality.
Signed on behalf of Hong Kong Quality Assurance Agency
Jorine Tam
Director, Corporate Business
June 2021
Universal Standards
GRI 102: General Disclosures 2016
Organisational Profile
102-1 Name of the organization Strategic Report 2020/2021: Inside front cover page
102-2 Activities, brands, products, and Strategic Report 2020/2021: Inside front cover page;
services Corporate Website 2020/2021: Our Business
102-3 Location of headquarters Strategic Report 2020/2021: Inside back cover page
102-4 Location of operations Strategic Report 2020/2021: Link at a Glance;
Corporate Website 2020/2021: Our Business
102-5 Ownership and legal form Governance, Disclosures and Financial Statements 2020/2021:
Regulation and Compliance
102-6 Markets served Strategic Report 2020/2021: About Link;
Corporate Website 2020/2021: Our Business
102-7 Scale of the organization Strategic Report 2020/2021: Link at a Glance;
Governance, Disclosures and Financial Statements 2020/2021:
Consolidated Statement of Financial Position;
Sustainability Website 2020/2021: ESG Performance Data Tables
102-8 Information on employees and other Sustainability Website 2020/2021: ESG Performance Data Tables
workers
102-9 Supply chain Governance, Disclosures and Financial Statements 2020/2021:
Regulation and Compliance;
Sustainability Website 2020/2021: How We Engage, Business Partners
102-10 Significant changes to the organization No significant changes from the previous reporting period.
and its supply chain
102-11 Precautionary Principle or approach Strategic Report 2020/2021: Embracing Risks and Opportunities
102-12 External initiatives Corporate Website 2020/2021: Milestones & Awards;
Sustainability Website 2020/2021: Commitments and Signatories,
Achievements
102-13 Membership of associations Sustainability Website 2020/2021: Commitments and Signatories
Strategy
102-14 Statement from senior decision-maker Strategic Report 2020/2021: Chairman’s Statement;
Chief Executive Officer’s Report
102-15 Key impacts, risks, and opportunities Strategic Report 2020/2021: Chairman’s Statement; Chief Executive
Officer’s Report; Embracing Risks and Opportunities
Ethics and Integrity
102-16 Values, principles, standards, and Strategic Report 2020/2021: Link at a Glance, Our Value Creation Process;
norms of behavior Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-17 Mechanisms for advice and concerns Governance, Disclosures and Financial Statements 2020/2021:
about ethics A Well-Governed Business;
Sustainability Website 2020/2021: Governance, Policies and
Procedures
Governance
102-18 Governance structure Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business;
Strategic Report 2020/2021: Sustainability Governance
102-19 Delegating authority Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-20 Executive-level responsibility for Strategic Report 2020/2021: Sustainability Governance
economic, environmental, and social
topics
102-21 Consulting stakeholders on economic, Strategic Report 2020/2021: Sustainability Governance;
environmental, and social topics Sustainability Website 2020/2021: CONNECTION
102-22 Composition of the highest Governance, Disclosures and Financial Statements 2020/2021:
governance body and its committees A Well-Governed Business;
Strategic Report 2020/2021: Sustainability Governance
102-23 Chair of the highest governance body Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-24 Nominating and selecting the highest Governance, Disclosures and Financial Statements 2020/2021:
governance body A Well-Governed Business
102-25 Conflicts of interest Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-26 Role of highest governance body in Governance, Disclosures and Financial Statements 2020/2021:
setting purpose, values, and strategy A Well-Governed Business;
Strategic Report 2020/2021: Sustainability Governance
102-27 Collective knowledge of highest Governance, Disclosures and Financial Statements 2020/2021:
governance body A Well-Governed Business
102-28 Evaluating the highest governance Governance, Disclosures and Financial Statements 2020/2021:
body’s performance A Well-Governed Business
102-29 Identifying and managing economic, Strategic Report 2020/2021: Sustainability Governance;
environmental, and social impacts Embracing Risks and Opportunities;
Sustainability Website 2020/2021: How We Engage, Materiality
102-30 Effectiveness of risk management Strategic Report 2020/2021: Sustainability Governance;
processes Embracing Risks and Opportunities;
Sustainability Website 2020/2021: How We Engage, Materiality
102-31 Review of economic, environmental, Strategic Report 2020/2021: Sustainability Governance
and social topics
102-32 Highest governance body’s role in Strategic Report 2020/2021: Sustainability Governance
sustainability reporting
102-33 Communicating critical concerns Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-34 Nature and total number of critical No critical concerns were identified. Governance, Disclosures and
concerns Financial Statements 2020/2021: A Well-Governed Business
102-35 Remuneration policies Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
102-36 Process for determining remuneration Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
Stakeholder Engagement
102-40 List of stakeholder groups Sustainability Website 2020/2021: How We Engage
102-41 Collective bargaining agreements There are no formal collective bargaining agreements in place at
Link. In Hong Kong, all employees have the right and freedom to form
and join trade unions.
102-42 Identifying and selecting stakeholders Sustainability Website 2020/2021: How We Engage
102-43 Approach to stakeholder engagement Strategic Report 2020/2021: Business As Mutual in Action:
A Platform for Growth; Shaping our Community;
Sustainability Website 2020/2021: How We Engage
102-44 Key topics and concerns raised Sustainability Website 2020/2021: How We Engage
Reporting Practice
102-45 Entities included in the consolidated Governance, Disclosures and Financial Statements 2020/2021:
financial statements Notes to the Consolidated Financial Statements
102-46 Defining report content and topic Strategic Report 2020/2021: About Link;
Boundaries Sustainability Website 2020/2021: About Our Reports
102-47 List of material topics Strategic Report 2020/2021: Embracing Risks and Opportunities;
Sustainability Website 2020/2021: How We Engage, Materiality
102-48 Restatements of information There are no restatements of information.
102-49 Changes in reporting To better align our ESG disclosures with that of GRI requirement, we
changed our GRI Standards from Comprehensive to Core Option in
2020/2021.
102-50 Reporting period Strategic Report 2020/2021: About Link;
Sustainability Website 2020/2021: About Our Reports
102-51 Date of most recent report 17 June 2020
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding Strategic Report 2020/2021: Corporate Information;
the report Governance, Disclosures and Financial Statements 2020/2021:
Corporate Information
102-54 Claims of reporting in accordance with Strategic Report 2020/2021: About Link;
the GRI Standards Sustainability Website 2020/2021: About Our Reports
102-55 GRI content index Governance, Disclosures and Financial Statements 2020/2021:
GRI Content Index
102-56 External assurance Governance, Disclosures and Financial Statements 2020/2021:
HKQAA Assurance Statement
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and Strategic Report 2020/2021: Embracing Risks and Opportunities;
its Boundary Sustainability Website 2020/2021: How We Engage, Materiality
103-2 The management approach and its Strategic Report 2020/2021: Sustainability Governance;
components Embracing Risks and Opportunities; Achieving Net Zero Emissions
by 2035; Empowering Our Talent; Shaping Our Community;
Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business;
Sustainability Website 2020/2021: Governance, Policies and
Procedures; Our Approach and Performance; Commitments &
Signatories; How We Engage; CONNECTION
103-3 Evaluation of the management Strategic Report 2020/2021: Sustainability Governance;
approach Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business;
Sustainability Website 2020/2021: Governance, Policies and
Procedures; Commitments & Signatories; HKQAA Assurance
Statement; How We Engage; CONNECTION
Economic Standards
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and Governance, Disclosures and Financial Statements 2020/2021:
distributed Notes to the Consolidated Financial Statements
201-2 Financial implications and other risks Strategic Report 2020/2021: Embracing Risks and Opportunities;
and opportunities due to climate Achieving Net Zero Emissions by 2035;
change Sustainability Website 2020/2021: Our Approach and Performance,
Climate Change Resilience and Adaptation
201-3 Defined benefit plan obligations and Governance, Disclosures and Financial Statements 2020/2021:
other retirement plans Long-term Incentive Scheme
201-4 Financial assistance received from No material financial assistance was received from government
government during the reporting period.
GRI 205: Anti-corruption 2016
205-2 Communication and training Every Link employee is required to complete an anti-corruption online
about anti-corruption policies and training upon onboarding.
procedures Governance, Disclosures and Financial Statements 2020/2021:
A Well-Governed Business
205-3 Confirmed incidents of corruption and No confirmed incidents of corruption were identified during the
actions taken reporting period.
Environmental Standards
GRI 302: Energy 2016
302-1 Energy consumption within the Sustainability Website 2020/2021: ESG Performance Data Tables
organisation
302-3 Energy intensity Sustainability Website 2020/2021: ESG Performance Data Tables
302-4 Reduction of energy consumption Sustainability Website 2020/2021: Our Approach and Performance,
Sustainability in Numbers
GRI 303: Water and Effluents 2018
303-1 Interactions with water as a shared Water usage is mainly for domestic use purposes at our properties,
resource and our operations do not produce hazardous waste or effluent
streams. In 2020/2021, we have conducted an internal water audit
across Hong Kong portfolio, aiming to set a water reduction target in
the near future. Sustainability Website 2020/2021: Our Approach and
Performance, Water Management
303-2 Management of water discharge- Sustainability Website 2020/2021: Our Approach and Performance,
related impacts Water Management
303-5 Water consumption Sustainability Website 2020/2021: ESG Performance Data Tables
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions Sustainability Website 2020/2021: ESG Performance Data Tables
305-2 Energy indirect (Scope 2) GHG Sustainability Website 2020/2021: ESG Performance Data Tables
emissions
305-3 Other indirect (Scope 3) GHG Sustainability Website 2020/2021: ESG Performance Data Tables
emissions
305-4 GHG emissions intensity Sustainability Website 2020/2021: ESG Performance Data Tables
305-5 Reduction of GHG emissions Sustainability Website 2020/2021: Our Approach and Performance,
Sustainability in Numbers
KPI A1.1 The types of emissions and respective Sustainability Website 2020/2021: ESG Performance Data
✓
emissions data. Tables
KPI A1.2 Direct (Scope 1) and energy indirect Sustainability Website 2020/2021: ESG Performance Data
✓
(Scope 2) greenhouse gas emissions Tables
(in tonnes) and, where appropriate,
intensity (e.g. per unit of production
volume, per facility).
KPI A1.3 Total hazardous waste produced Sustainability Website 2020/2021: ESG Performance Data
✓
(in tonnes) and, where appropriate, Tables
intensity (e.g. per unit of production
volume, per facility).
KPI A1.4 Total non-hazardous waste produced Sustainability Website 2020/2021: ESG Performance Data
✓
(in tonnes) and, where appropriate, Tables
intensity (e.g. per unit of production
volume, per facility).
KPI A1.5 Description of emissions target(s) set Strategic Report 2020/2021: Achieving Net Zero Emissions
✓
and steps taken to achieve them. by 2035; Sustainability Website 2020/2021:
Net Zero Strategy 2035; Our Approach and Performance,
Energy Management
KPI A1.6 Description of how hazardous and Strategic Report 2020/2021: Shaping Our Community;
✓
non-hazardous wastes are handled, Sustainability Website 2020/2021: Our Approach and
and a description of reduction targets(s) Performance, Waste Management
set and steps taken to achieve them.
General Disclosure Policies on the efficient use of Sustainability Website 2020/2021: Governance, Policies
✓
resources, including energy, water and and Procedures
other raw materials.
KPI A2.1 Direct and/or indirect energy Sustainability Website 2020/2021: ESG Performance Data
✓
consumption by type (e.g. electricity, Tables
gas or oil) in total (kWh in ‘000s) and
intensity (e.g. per unit of production
volume, per facility).
KPI A2.2 Water consumption in total and Sustainability Website 2020/2021: ESG Performance Data
✓
intensity (e.g. per unit of production Tables
volume, per facility).
KPI A2.3 Description of energy use efficiency Strategic Report 2020/2021: Achieving Net Zero Emissions
✓
target(s) set and steps taken to achieve by 2035; Sustainability Website 2020/2021: Our Approach
them. and Performance, Energy Management
KPI A2.4 Description of whether there is any Our water consumption is mainly for domestic uses. We do
✓
issue in sourcing water that is fit for not encounter any issue in sourcing water.
purpose, water efficiency target(s) set Sustainability Website 2020/2021: Our Approach and
and steps taken to achieve them. Performance, Water Management
KPI A2.5 Total packaging material used for N/A We do not manufacture any products.
finished products (in tonnes) and, if
applicable, with reference to per unit
produced.
General Disclosure Policies on minimising the issuer’s Sustainability Website 2020/2021: Governance, Policies
✓
significant impact on the environment and Procedures
and natural resources.
KPI A3.1 Description of the significant impacts Sustainability Website 2020/2021: Governance, Policies
✓
of activities on the environment and and Procedures; Our Approach and Performance
natural resources and the actions taken
to manage them.
General Disclosure Policies on identification and mitigation Sustainability Website 2020/2021: Governance, Policies
✓
of significant climate-related issues and Procedures
which have impacted, and those which
may impact, the issuer.
KPI A4.1 Description of the significant climate- Sustainability Website 2020/2021: Governance, Policies
✓
related issues which have impacted, and Procedures; Our Approach and Performance, Climate
and those which may impact, the issuer, Change Resilience and Adaptation
and the actions taken to manage them.
KPI B1.1 Total workforce by gender, employment Sustainability Website 2020/2021: ESG Performance Data
✓
type (for example, full- or part-time), age Tables
group and geographical region.
KPI B1.2 Employee turnover rate by gender, age Sustainability Website 2020/2021: ESG Performance Data
✓
group and geographical region. Tables
KPI B2.1 Number and rate of work-related Sustainability Website 2020/2021: ESG Performance Data
✓
fatalities occurred in each of the past Tables
three years including the reporting year.
KPI B2.2 Lost days due to work injury. Sustainability Website 2020/2021: ESG Performance Data
✓
Tables
KPI B2.3 Description of occupational health and Regular meetings are held between OHS Team and
✓
safety measures adopted, and how our contractors. Sustainability Website 2020/2021: Our
they are implemented and monitored. Approach and Performance, Health and Wellbeing
General Disclosure Policies on improving employees’ Sustainability Website 2020/2021: Governance, Policies
✓
knowledge and skills for discharging and Procedures; Our Approach and Performance, Learning
duties at work. Description of training and Development
activities.
KPI B3.1 The percentage of employees trained Sustainability Website 2020/2021: ESG Performance Data
✓
by gender and employee category Tables
(e.g. senior management, middle
management).
KPI B3.2 The average training hours completed Sustainability Website 2020/2021: ESG Performance Data
✓
per employee by gender and employee Tables
category.
KPI B4.1 Description of measures to review N/A We comply with the Employment Ordinance in Hong
employment practices to avoid child Kong and performs identity-check for employment. Link
and forced labour. also specifies in the Contractor’s Code of Conduct that
we forbid our suppliers/contractors to use child or forced
KPI B4.2 Description of steps taken to eliminate labour. During the reporting year, we did not identify any
such practices when discovered. violation to the related regulations.
Operating Practices
General Disclosure Policies on managing environmental Sustainability Website 2020/2021: Governance, Policies
✓
and social risks of the supply chain. and Procedures
KPI B5.1 Number of suppliers by geographical Sustainability Website 2020/2021: ESG Performance Data
✓
region. Tables
KPI B5.2 Description of practices relating Sustainability Website 2020/2021: Governance, Policies
✓
to engaging suppliers, number of and Procedures; Our Approach and Performance, Materials
suppliers where the practices are and Supply Chain; How We Engage, Business Partners
being implemented, how they are
implemented and monitored.
KPI B5.3 Description of practices used to identify Sustainability Website 2020/2021: Governance, Policies
✓
environmental and social risks along and Procedures; Our Approach and Performance, Materials
the supply chain, and how they are and Supply Chain
implemented and monitored.
KPI B5.4 Description of practices used to Sustainability Website 2020/2021: Governance, Policies
✓
promote environmentally preferable and Procedures; Our Approach and Performance, Materials
products and services when and Supply Chain
selecting suppliers, and how they are
implemented and monitored.
KPI B6.2 Number of products and service related No substantiated complaints were received in the reporting
✓
complaints received and how they are year.
dealt with.
KPI B6.3 Description of practices relating to Our Code of Conduct outlines our stance on the intellectual
✓
observing and protecting intellectual property rights, we respect intellectual properties of others
property rights. and refrain from using without proper authorisation or
licensing agreements.
KPI B6.4 Description of quality assurance We have internal assessment on our vendor performance.
✓
process and recall procedures.
KPI B6.5 Description of consumer data Our Privacy Policy and Personal Information Collection
✓
protection and privacy policies, and how Statement are in accordance with the Personal Data
they are implemented and monitored. (Privacy) Ordinance in Hong Kong, we are committed to
protect personal data privacy.
Corporate Website 2020/2021: Privacy Policy; Personal
Information Collection Statement
General Disclosure Information on: Link has strict policies against bribery, extortion, fraud and
✓
money-laundering.
(a) the policies; and Sustainability Website 2020/2021: Governance, Policies
and Procedures
(b) compliance with relevant laws and
regulations that have a significant
impact on the issuer
KPI B7.1 Number of concluded legal cases During the reporting period, no concluded legal cases
✓
regarding corrupt practices brought regarding corrupt practices were identified.
against the issuer or its employees
during the reporting period and the
outcomes of the cases.
KPI B7.2 Description of preventive measures and Governance, Disclosures and Financial Statements
✓
whistle-blowing procedures, and how 2020/2021: A Well-Governed Business;
they are implemented and monitored. Sustainability Website 2020/2021: Governance, Policies
and Procedures
KPI B7.3 Description of anti-corruption training Every Link employee is required to complete an anti-
✓
provided to directors and staff. corruption online training upon onboarding.
Governance, Disclosures and Financial Statements
2020/2021: A Well-Governed Business
Community
General Disclosure Policies on community engagement Strategic Report 2020/2021: Shaping our Community;
✓
to understand the needs of the Governance, Disclosures and Financial Statements
communities where the issuer operates 2020/2021: Link Together Initiatives;
and to ensure its activities take into Sustainability Website 2020/2021: How We Engage,
consideration the communities’ Communities;
interests. Corporate Website 2020/2021: Community
The United Nations Global Compact (UNGC) is an international initiative outlining ten principles for responsible
business in the areas of human rights, labour, the environment and anti-corruption. The principles are derived from
the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental
Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations
Convention Against Corruption.
In September 2012, we signed up to the UNGC to reaffirm our commitment to respect labour standards and human
rights, to operate in an environmentally responsible manner and to maintain zero tolerance towards corruption. Here
we provide an index to our performance demonstrating the Global Compact’s ten principles in our work. We are not
in violation of any of the ten principles.
Human Rights
Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2 make sure that they are not complicit in human rights abuses.
Labour
Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to
collective bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; and
Principle 6 the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7 Businesses should support a precautionary approach to environmental challenges;
Principle 8 undertake initiatives to promote greater environmental responsibility; and
Principle 9 encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.
Financial Data
Year ended Year ended Year ended Year ended Year ended
31 March 2021 31 March 2020 31 March 2019 31 March 2018 31 March 2017
HK$’M HK$’M HK$’M HK$’M HK$’M
Represented by:
Change in net assets attributable to Unitholders,
excluding issues of new units and units
bought back (2,566) (24,835) 13,260 44,609 12,461
Amount arising from exchange reserve
and cash flow hedging reserve movements (2,169) 1,783 1,552 (2,102) 352
Non–controlling interest (433) (181) 113 218 202
As at As at As at As at As at
31 March 31 March 31 March 31 March 31 March
2021 2020 2019 2018 2017
Net assets attributable to Unitholders HK$’M 158,720 159,711 188,739 178,594 138,241
Net assets per unit attributable to Unitholders HK$ 76.24 77.61 89.48 83.06 62.47
Closing price per unit HK$ 70.80 65.70 91.80 67.00 54.45
Market capitalisation HK$’M 147,396 135,204 193,636 144,054 120,498
(Discount)/premium of unit price to net assets
per unit attributable to Unitholders % (7.1) (15.3) 2.6 (19.3) (12.8)
Units in issue 2,081,862,866 2,057,898,386 2,109,321,254 2,150,058,972 2,213,002,276
Portfolio Data
Year ended Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March 31 March
2021 2020 2019 2018 2017
Australia Office
Occupancy rate at year end % 100.0 N/A N/A N/A N/A
Note: Average monthly unit rent at year end and reversion rate were calculated based on base rent (excluding management fee). Comparative figures
have been restated.
Performance Data
The highest premium of the traded price to
net assets per unit attributable to
Unitholders (Note(i)) HK$ N/A 22.19 2.77 N/A N/A
The highest discount of the traded price to
net assets per unit attributable to
Unitholders (Note(i)) HK$ (19.99) (14.21) (23.68) (28.86) (17.37)
Net yield per unit (Note(ii)) % 4.1 4.4 3.0 3.7 4.2
Net yield per unit on listing price of HK$10.30
per unit % 28.2 27.9 26.3 24.3 22.2
Notes:
(i) The highest premium and discount are calculated based on the highest and lowest traded prices of HK$75.75 (2020: HK$99.80) and HK$56.25
(2020: HK$63.40) respectively on The Stock Exchange of Hong Kong Limited during the year.
(ii) Net yield per unit is calculated based on distribution per unit for the year ended 31 March 2021 of HK289.99 cents (2020: HK287.19 cents) over
the closing price as at 31 March 2021 of HK$70.80 (2020: HK$65.70).
Investor Information
Financial Calendar
Final results announcement for the financial year ended 31 March 2021 17 June 2021
Ex-final distribution date 29 June 2021
Closure of register of Unitholders (for final distribution)(1) 2 July to 5 July 2021
(both days inclusive)
Record date for final distribution 5 July 2021
Announcement of distribution reinvestment scheme 5 July 2021
Despatch of distribution reinvestment scheme circular and related documents 12 July 2021
Announcement of issue price for scrip in lieu of a final cash distribution 19 July 2021
Final date for scrip election (2)
27 July 2021
not later than 4:30 p.m.
Closure of register of Unitholders (for the 2021 AGM)(3) 27 July to 30 July 2021
(both days inclusive)
2021 AGM 30 July 2021
Final distribution payment date 12 August 2021
Interim results announcement for the six months ending 30 September 2021 November 2021
Notes:
(1) In order to qualify for the final distribution of HK148.34 cents per Unit for the year ended 31 March 2021, Unitholders should ensure that all transfer
documents accompanied by the relevant unit certificates have been lodged with Link’s unit registrar, Computershare Hong Kong Investor Services
Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, for registration not later than 4:30 p.m. on
Wednesday, 30 June 2021.
(2) A distribution reinvestment scheme will be available to eligible Unitholders who may elect to receive the final distribution for the year ended
31 March 2021 wholly in cash or wholly in new Units or a combination of both. For those Unitholders electing for scrip, the relevant election form
must be lodged with Link’s unit registrar, Computershare Hong Kong Investor Services Limited (at the address above) not later than
4:30 p.m. on Tuesday, 27 July 2021. Unitholders should note that any election form arrived/received after the aforesaid deadline will be
taken as invalid.
(3) In order for Unitholders to be eligible to attend and vote at the 2021 AGM, all transfer documents accompanied by the relevant unit certificates
must be lodged with Link’s unit registrar, Computershare Hong Kong Investor Services Limited (at the address above), for registration not later than
4:30 p.m. on Monday, 26 July 2021.
Index Inclusion
Link is a component of the following selected indices:
Dow Jones Sustainability Asia Pacific Index Hang Seng Index
Hang Seng REIT Index
FTSE4Good Index Series
Hang Seng Composite Index
FTSE Global Equity Index Series
Hang Seng HK 35
FTSE Global Minimum Variance Index Series
Hang Seng Corporate Sustainability Index
FTSE EPRA(1) NAREIT(2) Index Series
FTSE RAFI Index Series MSCI(4) All Country World Index
MSCI(4) All Country Asia ex-Japan Index
GPR(3) 250 (World) Index
MSCI(4) World Index
GPR(3) 250 Asia Index
MSCI(4) Hong Kong Index
GPR(3) 250 Asia Pacific Index
MSCI(4) AC Asia Pacific Real Estate Index
GPR(3) 250 Hong Kong Index
MSCI(4) AC Asia ex Japan IMI REITS Index
GPR(3) 250 REIT (World) Index
GPR(3) 250 REIT Asia Index GPR(3)/APREA(5) Composite Index
GPR(3) 250 REIT Asia Pacific Index GPR(3)/APREA(5) Composite Hong Kong Index
GPR(3) 250 REIT Hong Kong Index GPR(3)/APREA(5) Composite REIT Index
GPR(3) General (World) Index GPR(3)/APREA(5) Composite REIT Hong Kong Index
GPR(3) General Asia Index GPR(3)/APREA(5) Investable 100 Index
GPR(3) General Hong Kong Index GPR(3)/APREA(5) Investable 100 Hong Kong Index
GPR(3) General Quoted (World) Index GPR(3)/APREA(5) Investable REIT 100 Index
GPR(3) General Quoted Asia Index
GPR(3) General Quoted Hong Kong Index
GPR(3) Global 100 Index
GPR(3) LFFS Sustainable GRES Index
The inclusion of Link REIT in any MSCI(4) index, and the use of MSCI(4) logos, trademarks, service marks or index names
herein, do not constitute a sponsorship, endorsement or promotion of Link REIT by MSCI(4) or any of its affiliates. The
MSCI(4) indexes are the exclusive property of MSCI(4). MSCI(4) and the MSCI(4) index names and logos are trademarks
or service marks of MSCI(4) or its affiliates.
Notes:
(1) European Public Real Estate Association
(2) National Association of Real Estate Investment Trusts
(3) Global Property Research
(4) Morgan Stanley Capital International
(5) Asia Pacific Real Estate Association
2017 LTI Scheme or the long-term incentive scheme of Link adopted by the Board on 10 July 2017
Long-term Incentive
Scheme
2020 AGM the annual general meeting of Unitholders held on 22 July 2020
2021 AGM the annual general meeting of Unitholders scheduled to be held on 30 July 2021
average monthly unit rent the average base rent per month psf of leased area
base rent in respect of a lease, the standard rent payable under the lease, exclusive of any
additional turnover rent (if applicable) and other charges and reimbursements
Board Committees the committees of the Board to discharge the duties set out in their respective
terms of reference as approved by the Board which, as at the date of this report,
include the Audit and Risk Management Committee, the Finance and Investment
Committee, the Nomination Committee and the Remuneration Committee, and
“Board Committee” refers to any one of them
China or Mainland China or The People’s Republic of China and if the context requires, exclude Hong Kong
PRC
Compliance Manual the compliance manual of the Manager which sets out (among others) the key
processes, systems and measures in respect of Link’s operations and the
corporate governance policy of Link
Conditional Cash Award(s) conditional right to receive cash payment(s) granted to a participant in accordance
with the rules of the 2017 LTI Scheme and the relevant grant letter(s)
DPU distribution per Unit in respect of the total distributable amount of Link for a
financial year/period
ED(s) Executive Director(s) of the Manager (unless the context requires otherwise)
EUPP employee unit purchase plan, pursuant to which an eligible employee who meets
the prescribed criteria is entitled to subsidy from the Manager for purchasing,
through an independent third-party intermediary, Units in the open market in
accordance with the rules of the plan
GAV gross asset value (and as calculated in the manner set out in the Trust Deed)
GAV Cap 10% of Link’s gross asset value (and as calculated in the manner set out in the
Trust Deed) as a cap to property development activities of Link under the REIT
Code
Group Link and its subsidiaries (unless the context requires otherwise)
Hong Kong or HKSAR Hong Kong Special Administrative Region of the PRC
Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited
or Stock Exchange or SEHK
INED(s) Independent Non-Executive Director(s) of the Manager (unless the context requires
otherwise)
LEED-EBOM Leadership in Energy and Environmental Design for Existing Buildings: Operations
& Maintenance
like-for-like excluding any properties acquired, divested and/or newly operational (as
applicable) during the periods under analysis
Link Corporate Governance the corporate governance policy set out in the Compliance Manual
Policy
Link Securities Dealing the code governing dealings in securities of Link by Directors and senior
Code management of the Manager
Listing Rules Rules Governing the Listing of Securities on the Stock Exchange
Listing Rules Corporate Corporate Governance Code and Corporate Governance Report contained in
Governance Code Appendix 14 to the Listing Rules
market capitalisation the market value of the REIT calculated by multiplying the number of units in issue
by the prevailing unit price quoted on the Stock Exchange
Maximum Cap 25% of Link’s GAV as a cap to the combined value of: (i) all Relevant Investments;
(ii) non-qualified minority-owned properties; (iii) other ancillary investments; and (iv)
all of the property development costs together with the aggregate contract value of
the uncompleted units of real estate
MTN note(s) and/or green bond issued or to be issued from time-to-time pursuant to the
Guaranteed Euro Medium Term Note Programme established by The Link Finance
(Cayman) 2009 Limited (a wholly-owned subsidiary of Link) in May 2009
NED Non-Executive Director of the Manager (unless the context requires otherwise)
NPI net property income, being total revenue less direct property related expenses
occupancy rate the aggregated leased area as a percentage of total leasable area
Principal Valuer the Principal Valuer (as defined in the REIT Code) of Link, which is currently Colliers
International (Hong Kong) Limited
REIT Code Code on Real Estate Investment Trusts issued by the SFC
Relevant Investments the financial instruments permissible from time-to-time under the REIT Code
for Link to invest in, including (without limitation): (i) securities listed on the Stock
Exchange or other internationally recognised stock exchanges; (ii) unlisted debt
securities; (iii) government and other public securities; and (iv) local or overseas
property funds
Restricted Unit Award(s) conditional right to receive Units granted to a participant in accordance with the
rules of the 2017 LTI Scheme and the relevant grant letter
ROI or return on projected NPI post asset enhancement minus NPI pre asset enhancement divided
investment by the estimated amount of project capital expenditure and loss of rental
reversion rate the percentage change in psf average unit rent between old and new leases on the
same unit
SFO Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
SPV(s) special purpose vehicle(s) (within the meaning of the REIT Code and the Trust
Deed)
sq ft square feet
tenant a lessee, a tenant or a licencee (as the case may be) under a lease
total distributable amount total distributable amount for a financial year/period is the total distributable income
and any additional amount (including capital) that the Manager has determined to
be distributable
total distributable income the consolidated profit after taxation attributable to Unitholders (equivalent to profit
for the financial year/period, before transactions with Unitholders attributable to
Unitholders) adjusted to eliminate the effect of certain non-cash adjustments
Trust Deed the trust deed dated 6 September 2005 between the Trustee and the Manager
constituting Link, as amended and supplemented by 14 supplemental deeds and
an amending and restating deed
Trustee trustee of Link, which is currently HSBC Institutional Trust Services (Asia) Limited
yoy year-on-year
Trustee
HSBC Institutional Trust Services (Asia) Limited
Auditor
PricewaterhouseCoopers
Notes:
(1) email: cosec@linkreit.com
(2) Required by the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
(3) Required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited