- Lendlease REIT (SGX:JYEU) reported 2HFY23 DPU of S$0.0225, -8.2% h-o-h/-6.3% y-o-y. Organic and inorganic top-line growth was more than offset by higher borrowing cost.
- Buildings are close to full occupancy while reversions are positive and accelerating. Tourism-led retail growth should further help reversions.
- - Read this at SGinvestors.io -
Meeting takeaways – Continued growth in retail
- We hosted Lendlease REIT's management for lunch with a group of investors. Key topics discussed included rent reversion outlook, updates on ongoing asset enhancements and redevelopment of Grange Road car park, funding cost trajectory and views on capital recycling.
- - Read this at SGinvestors.io -
- Redevelopment of car park is on track to become operational by 2024.
- Management intends to remain a Singapore-centric play. Its focus is on growing its stakes in Parkway Parade and Paya Lebar Quarter.
- Divestment or strata sale of office assets to lower gearing and/or redeem the perps is being explored. On capital management, cost of debt will be ~3-3.5% vs 2.66% in FY23 following refinancing of EUR debt.
Steady operation offset by higher funding cost
- Read more at SGinvestors.io.
