- Lendlease Global Commercial REIT (SGX:JYEU)’s 1HFY24 DPU of S$0.022 fell 6.7% h-o-h and declined 14.3% y-o-y. Singapore malls are nearly full while garnering mid-teens positive reversion.
Positive portfolio performance was offset by higher borrowing costs.
- - Read this at SGinvestors.io -
- Despite improved NPI, distribution was down due to higher borrowing expenses.
- We factor in higher borrowing costs and lower our DPU estimates for Lendlease REIT by ~7% on average.
Steady retail, proactive office lease management
- Lendlease REIT's 1HFY24 revenue and NPI of S$119.9m and S$93.4m was up 17.9% and 22.2% y-o-y. Growth was led by improved operational performance of malls and recognition of supplementary rent from lease restructure of Sky Complex (offices in Milan). Excluding the supplementary rent (~S$13m), revenue and NPI for 1H rose 5.1% y-o-y.
- - Read this at SGinvestors.io -
- The recognized supplementary rent is approximately equal to two years of the prevailing rent of the returned building. Lendlease REIT intends to use the amount for fit-out capex and/or supporting distribution.
Improving operations; challenging funding conditions
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-05
Read also Maybank's most recent report:
2024-08-07 Lendlease Global Commercial REIT - Healthy Operations, Moving Towards Stability.
Previous report by Maybank:
2024-05-07 Lendlease Global Commercial REIT - Navigating Headwinds ~ Healthy Operating Metrics, Higher Funding Cost.
Price targets by 3 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