In terms of valuation, Link used to trade at a premium compared to S-REITs. Over the years, as it diversified into jurisdictions such as China and recently the UK, Link has been trading at a discount to NAV. This is probably due to the market and interest rate cycles in places like the UK and Australia rather than its structure.
Link REIT has been held up time and again as a successful REIT whose management company is internalised. Indeed, since its IPO in 2005, it has outperformed the likes of CapitaLand Integrated Commercial Trust (CICT), CapitaLand Ascendas REIT (CLAR) and Mapletree Logistics Trust (MLT).
As a REIT with an internalised management structure, detractors of the externally-managed REIT model argue that the lack of a sponsor shoving assets into Link to grow AUM and fees is an advantage — which it probably is.
