Lendlease Global Commercial REIT - Phillip Securities 2023-08-15: Higher Reversion For Longer

Lendlease Global Commercial REIT - Higher Reversion For Longer

Lendlease REIT (SGX:JYEU) | SGinvestors.ioLendlease REIT (SGX:JYEU)
  • Lendlease REIT (SGX:JYEU)'s FY23 revenue and NPI doubled to S$204.9m and S$153.9m, respectively, and were below our expectations at 94% and 91%. Healthy retail rental reversion of 4.8% and increasing contribution from Jem were the main driving factors. We anticipate these trends to continue in FY24e, with additional upside potential from 313@somerset.
  • - Read this at SGinvestors.io -
  • We reiterate our BUY recommendation on Lendlease REIT with a decrease in FY24e-25e DPU forecasts to S$0.0438 - S$0.0463 on the back of rising interest rates. Our DDM-based target price for Lendlease REIT is adjusted down to S$0.86.

The Positives

Strong rental reversion continues in FY24e

  • - Read this at SGinvestors.io -
  • The Sky Complex in Milan (tied to the CPI index) experienced a 5.9% rental escalation. Tenant sales at the portfolio level increased 2.5 times, surpassing pre-COVID levels by over 16% in Jun 2023 while Footfalls have normalized to 100%.
  • We expect the rental trend of Jem to stabilize in 2H23, while 313@somerset's rental is projected to gradually increase as international visitors return.

Portfolio occupancy stays at 99.9% as of Jun 2023 and tenant retention at 82.4%.

  • Read more at SGinvestors.io.

Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.

Liu Miao Miao Phillip Securities Research | https://www.stocksbnb.com/ 2023-08-15

Read also Phillip's most recent report:
2024-05-07 Lendlease Global Commercial REIT - Rental Upside To Come From Sky Complex Milan.

Previous report by Phillip:
2024-02-05 Lendlease Global Commercial REIT - High Rental Reversion & Rental Upside From Sky Complex.

Price targets by 2 other brokers at Lendlease REIT Target Prices.

Listing of research reports at Lendlease REIT Analyst Reports.

Relevant links:
Lendlease REIT Share Price History,
Lendlease REIT Announcements,
Lendlease REIT Dividends & Corporate Actions,
Lendlease REIT News Articles


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