- No financials were provided by Lendlease Global Commercial REIT (SGX:JYEU) for 1Q24.
- Portfolio committed occupancy remains high at 99.9%, with strong rental reversion of 16.3%. We expect the momentum to continue for the rest of FY24, with 313@Somerset leading the performance as international travellers return.
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- We expect FY24e earnings will be supported by strong rental reversion and fading headwinds from the interest rate hike.
- We reiterate our BUY recommendation on Lendlease REIT with an unchanged DDM-based target price of S$0.86 and FY24e-25e DPU forecasts of S$0.0438-S$0.0463.
The Positives
Robust rental reversion.
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- In FY24, 7.8% of leases by Lendlease REIT's gross rental income (GRI) are set to expire, and we anticipate the momentum of high reversion to persist, with 313@somerset benefiting from the return of tourism and Jem maintaining stability.
Healthy operating metrics.
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