- Lendlease Global Commercial REIT (SGX:JYEU) has underperformed its retail focused S-REIT peers lately, with its share price weakening by close to 15% while its peers have declined only around 3%. This is despite the REIT building more resilience and growth via its acquisitions of JEM mall (in Feb 2022) and a 10% stake in Parkway Parade Mall in Jun 2023.
- - Read this at SGinvestors.io -
- Despite the pivot to Singapore and increase in stability of returns, investors’ concerns revolve around its stretched financials (gearing of ~40%) and ICR ratio of 4.2x (or adjusted ICR ratio of 2.1x). Conversations centre on whether higher interest rates could cause further financial stress in the coming quarters, potentially requiring an equity recapitalization exercise if interest rates stay higher for longer.
- - Read this at SGinvestors.io -
Asset values supported by improving cashflows; LREIT has buffer for a further 10% decline in asset value declines before gearing hits 45%.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-09-11
Previous report by DBS:
2023-08-10 Lendlease Global Commercial REIT - Just The Start Of Robust Reversions.
Price targets by 4 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
