- Lendlease Global Commercial REIT (SGX:JYEU)’s 3QFY23 (Jan to Mar 2023) business update was broadly in line with our expectations. Maintain BUY and target price of S$0.87 based on DDM (cost of equity: 7.25%, terminal growth: 2.2%).
Retail on uptrend.
- - Read this at SGinvestors.io -
- Lendlease Global Commercial REIT achieved positive rental reversion of 4-5% for retail properties in 3QFY23 (9MFY23: 3.3%). Tenant sales were 13% above pre-pandemic levels. Sky Complex in Milan clocked rental escalation of 4%.
- Overall, tenant retention rate was healthy at 79.5%.
- Lendlease Global Commercial REIT has long portfolio WALE of 8.3 years by NLA and 5.4 years by GRI.
Headwinds from rate hikes have eased.
- - Read this at SGinvestors.io -
Completed refinancing for Euro loan.
- Lendlease Global Commercial REIT has obtained a €300m unsecured 5-year sustainability-linked loan (commences and drawdown in Oct 23) to refinance its Euro loan due in FY24. The all-in interest rate for the new facility is expected to be low-3%.
- Lendlease Global Commercial REIT does not have any refinancing until FY25.
Deploying more bonus GFA at prime spaces in FY24.
- Read more at SGinvestors.io.
