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.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Use Trust referral code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback rewards 🎟!
