Lendlease Global Commercial Reit posts 3% rise in H2 DPU to S$0.0185
Distributable income is up 40% year on year at S$61.7 million
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[SINGAPORE] The manager of Lendlease Global Commercial Real Estate Investment Trust (Reit) reported a distribution per unit (DPU) of S$0.0185 for the second half ended Jun 30, up 3 per cent from S$0.018 for the previous corresponding period.
The higher DPU was mainly due to recurring earnings from a strong portfolio of operational assets, anchored by resilient Singapore malls, said the manager on Monday (Aug 3).
The distribution will be paid out on Sep 21, after the record date of Aug 12.
Distributable income for H2 rose 40 per cent to S$61.7 million, from S$44.1 million a year earlier.
Revenue rose 6.8 per cent year on year to S$110 million; net property income (NPI) increased 6.6 per cent to S$78.7 million.
The higher takings were driven by PLQ Mall, following the Reit’s acquisition of the remaining 30 per cent stake in the mall in March, giving it full ownership.
Performance was also supported by its Singapore retail assets, partially offset by the divestment of Jem’s office component, said the manager. Excluding PLQ Mall and Jem’s office, revenue and NPI for H2 would have risen 4.9 per cent and 6.6 per cent, respectively.
For the full year, DPU was up 3 per cent year on year at S$0.037 and distributable income rose 26 per cent to S$110.3 million. Revenue rose 2.6 per cent to S$211.9 million; NPI was up 2.7 per cent at S$152.7 million.
As at end-June, Lendlease Reit’s portfolio committed occupancy was 94.6 per cent. Its retail portfolio had an occupancy rate of 98.5 per cent, while its Milan office portfolio recorded occupancy rate of 89.1 per cent.
The portfolio weighted average lease expiry stood at 4.7 years by net lettable area and 3.6 years by gross rental income. The portfolio valuation was S$4.2 billion as at end-June.
The Reit’s retail portfolio recorded positive rental reversion of 11.7 per cent for FY2026.
Tenant sales and shopper visits grew 24 per cent and 16.4 per cent, respectively. Excluding PLQ Mall, the tenant sales would have risen 4 per cent and visits would have gone up 5.2 per cent year on year.
Tenant retention rate was 70.8 per cent, mainly due to the exit of Cathay Cineplexes, which has been replaced with Shaw Theatres. Excluding Cathay Cineplexes, the tenant retention would have been 79.6 per cent.
The manager said that the reconfiguration of about 16,000 square feet of retail space at PLQ Mall is expected to be completed by the end of 2026. It expects the project to support positive rental reversions and improve the mall’s retail offering.
Units of Lendlease Reit ended Monday 2.5 per cent or S$0.015 lower at S$0.575, before the release of its results.
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