The Link Management, which manages public housing shopping malls in Hong Kong, said its total income for the first half surged 13.9 percent to HK$884 million, boosted by positive rental reversions at the malls, and efforts in cost efficiencies.

The company's distribution per unit during the six months ended Sept 30 also soared 13.2 percent to HK$0.4086, while the annual distribution yield amounted to 5.1 percent based on the closing unit price of HK$16.2.

The composite rental reversion rate grew to 25.84 percent over three-year timeframe, which increased from 13.92 percent in the same period last year.

Average rent per square foot rose to HK$26.8 from HK$24.4 year-on-year, as higher rents were charged in malls where asset enhancement works have been completed.

Executive Director and Chief Executive Officer Ian Robins said the Link has already invested HK$426.5 million in asset enhancement over the past three years, in which five projects have already been completed and three others have finished the first stage of enhancement.

"We will spend HK$1.1 billion more to complete 19 projects in the current and coming two financial years," Robins said. The asset enhancement program has produced around 800 jobs in retail services, while it will continue to generate 4,600 more jobs in construction and consultancy services in the next two years.

Talking about the impact of financial crisis on the retail business, chairman Nicholas Sallnow-smith declined to comment whether the Link would cut their rents. However, he said the company will continue to improve the malls' shopping environment to encourage consumer spending .

Occupancy rate of the retail facilities dropped to 87.6 percent from 90.5 percent last year, yet retention rate increased to 76.3 percent from 73.2 percent. Sallnow-smith said the company did not wish to see a high vacancy, as it would also weigh down its earnings.

Shares of the Link rebounded in yesterday's afternoon trading session, after the announcement of its first-half results. The stock ended the day 2.06 percent, or HK$0.28, higher to close at HK$13.88.

(HK Edition 11/13/2008 page2)