With 50% ownership, Link Real Estate Investment Trust (HKG:823) boasts of strong institutional backing | Ezine Daddy

If you want to know who really controls Link Real Estate Investment Trust (HKG:823), you need to look at the composition of its share register. We can see that institutions with 50% ownership own the lion’s share of the company. In other words, the group will gain the most (or lose the most) from their investment in the company.

Because institutional owners have a vast pool of resources and liquidity at their disposal, their investment decisions tend to carry a lot of weight, especially for retail investors. As a result, a significant amount of institutional money invested in a company is generally viewed as a positive attribute.

Let’s take a closer look at what the different types of shareholders can tell us about Link Real Estate Investment Trust.

Check out our latest analysis for Link Real Estate Investment Trust

SEHK:823 property breakdown April 28, 2022

What Does Institutional Ownership Tell Us About Link Real Estate Investment Trust?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.

Link Real Estate Investment Trust already has institutions on the share register. In fact, they own a respectable stake in the company. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. If several institutes change their opinion on a stock at the same time, the share price could fall quickly. It is therefore worth checking out Link Real Estate Investment Trust’s earnings history below. Of course, what really matters is the future.

Profit and Revenue Growth
SEHK:823 earnings and revenue growth April 28, 2022

Institutional investors own over 50% of the company, so collectively they can likely heavily influence board decisions. We find that hedge funds have no meaningful investment in Link Real Estate Investment Trust. The company’s largest shareholder is BlackRock, Inc. with an 8.9% stake. In comparison, the second- and third-largest shareholders hold around 5.4% and 5.3% of the shares, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s stock, meaning the company’s shares are widely dispersed and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. There are a fair number of analysts covering the stock, so it might be helpful to get their overall view on the future.

Insider ownership of Link Real Estate Investment Trust

While the exact definition of an insider can be subjective, almost everyone considers a board member to be an insider. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.

Our latest data shows that insiders own less than 1% of Link Real Estate Investment Trust. Because it’s so big, we wouldn’t expect insiders to own a large chunk of the stock. Together they own shares worth HK$91 million. It’s arguably just as important to consider recent buying and selling. You can click here to see if Insiders bought or sold.

General Public Property

The general public — including retail investors — own 49% of the shares in the company, so it can’t be easily ignored. While this group may not necessarily be in charge, it can certainly have a real impact on how the company is run.

Next Steps:

I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. For example, we discovered 2 Warning Signs for Link Real Estate Investment Trust (1 is potentially serious!) to consider before investing here.

If you’d rather learn what analysts are predicting in terms of future growth, don’t miss this one free Analyst forecast report.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Leave a Comment