Link corporate strategy focuses on evolving both the existing Link REIT Portfolio as well as the growth of our investment management business under Link. Building on the proven success of Link REIT, we aim to position it as a “REIT plus” investment case, characterised by resilient returns that withstand market cyclicality and the potential for above-average earnings growth.
Active management and optimisation of the Link REIT Portfolio has been central to how we create value and deliver resilient returns for our Unitholders. We adopt an active management approach to drive growth both organically and inorganically. We also adhere to a prudent capital management approach to preserve our strong financial position and address potential risks.
With a sizeable portfolio under management, we build on our core strengths and focus on operational excellence to drive efficiency, productivity, tenant satisfaction and cost effectiveness, benefitting from economies of scale. Asset enhancement is also an integrated part of business, maintaining the competitiveness of our assets.
We continually search and review potentially accretive investment opportunities across geographies and asset classes for the Link REIT Portfolio. We are closely following current regional repricing trends and emerging investment theses. While maintaining our strong market position in Hong Kong and the Chinese Mainland, we focus on growing in Australia and Singapore retail as we further diversify the portfolio. We also continue to evaluate potential asset recycling initiatives, especially assets considered non-core or of lower potential.
The investment management capabilities under Link have been an indispensable part of Link REIT since its listing in 2005. We have been adopting an active in-house management approach, with full alignment of interests between Link and the Link REIT Portfolio, both being under Link REIT. There is ample potential to generate additional income by expanding our REIM business to third party capital.
We are evolving our capabilities in two main areas: (i) asset and property management, manifest by our commitment to operational excellence and (ii) fund management, which covers portfolio and capital decisions and focuses on delivering investment returns.
We aim to expand our REIM business so that we can work with and provide services for capital partners. Leveraging our experience, scale and track record, we have launched Link Real Estate Partners, a new business line to serve private institutional capital focusing on value-add strategies and returns. We will also explore other strategic opportunities to grow our fee income through third-party capital.