INTERIM REPORT - The Link REIT

REPORT OF THE CHIEF EXECUTIVE OFFICER (CONTINUED)Expansion of The Link REIT’s Business ModelASSETMANAGEMENT• Leasing strategy✔ Maintain strong reversion✔ Improve occupancy✔ Enhance trade mix• Property management strategy✔ Improve service quality✔ Cost control✔ Energy savings✔ Improve operating marginsASSETENHANCEMENTASSETACQUISITION• Rejuvenate shopping centres✔ Enhance environment✔ Improve traffic/circulation• Reposition shopping centres✔ Introduce variety/choices✔ Tailor trade mix tolocal shopper demand• Target community retail malls• Leverage on synergy andeconomies of scale• Expand geographic coverage• Improve competitivenessThe buoyant local retail market was evidenced by strong retail sales in the first half of thisfinancial year. Although recent retail sales growth was partly driven by strong tourist influx, privateconsumption also recorded healthy growth indicated by continuous increase in local consumerspending. The Link REIT’s portfolio should benefit from this trend as an above average number ofleases are due for renewal in the remainder of the current financial year.Supported by the strong retail market, positive rental reversion and increasing contributions fromcompleted AEIs, the Manager expects to continue with the rental growth in the second half of thefinancial year. Cost management will be challenging as inflationary pressure builds up and affectsmost of our cost items. The Manager remains confident that The Link REIT will sustain stablegrowth for the full year.George Kwok Lung HONGCHOYChief Executive OfficerThe Link Management LimitedAs Manager of The Link Real Estate Investment Trust269 November 2011The Link Real Estate Investment Trust