- We initiate coverage on Lendlease Global Commercial REIT (Lendlease REIT, SGX:JYEU) with BUY rating and DDM-based target price of S$0.80. Lendlease REIT is poised to benefit from resilient retail sales in Singapore and rejuvenation of the micro markets in which its key assets are located. Its lease structure offers growth and stability. Sponsor’s asset pipeline and network of capital partners should also aid growth.
- - Read this at SGinvestors.io -
Singapore-centric play on retail rebound, rejuvenation of the micro market
- Lendlease REIT’s two well-located Singapore malls that contributes 75% of gross rental income (GRI) will continue to benefit from resilient domestic consumption and steady recovery in tourism. Reversions are growing and up 3.3% year-to-date. 16% of rents are due for renewal in 2024.
- - Read this at SGinvestors.io -
- Office master leases (25% of GRI) provide stability and step-ups.
Supportive sponsor, ample acquisition opportunities
- Read more at SGinvestors.io.
