Lendlease Global Commercial REIT - Recovery Intact
- Lendlease REIT (SGX:JYEU)’s 3QFY22 (Jan 2022 to Mar 2022) portfolio occupancy remained unchanged q-o-q at 99.9%, with 313@somerset (313) achieving an occupancy rate of 99.4%.
- According to management, Lendlease REIT enjoyed a positive single-digit reversion in 3Q. In terms of cost management, management indicated that utilities costs account for 6-8% of total opex. Lendlease REIT also guided that its current utilities contracts will be in place until next year and Lendlease REIT will likely enjoy the lower existing contracted utilities rates.
- Interest rate hikes and a weaker € are also less of an immediate concern for Lendlease REIT as it has hedged > 90% of its debt into fixed rates and has hedged close to 100% of € income for the next 1.5 years.
- Reiterate ADD rating for Lendlease REIT. We tweak our FY23-24F DPU estimates up by 0.26-0.87% post update and fine-tune our DDM-based target price for Lendlease REIT to S$1.05.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-05 2022-05-05
Read also CGS-CIMB's most recent report:
2022-11-08 Lendlease Global Commercial REIT - Good Leasing Traction To Kick Start The Year
Check out the most recent target prices at Lendlease REIT Target Prices. Listing of analyst research reports at Lendlease REIT Analyst Report.
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