- Lendlease REIT (SGX:JYEU)'s 1HFY24 gross revenue increased by 17.9% to S$119.9mil with the 2-year supplementary rental from Building 3 of Sky Complex and form 55% of our FY24e forecast.
- NPI increased 22.2% y-o-y while Lendlease REIT's distribution slid 14.5% y-o-y to 2.1 cents, and were 54%/52% of our FY24e estimates.
- - Read this at SGinvestors.io -
- We reiterate our BUY recommendation on Lendlease REIT with lower DDM-based target price of S$0.83 and FY24e-25e DPU forecast of 4.16-4.59 Singapore cents.
- Erosion of DPU brought by higher-for-longer interest rates will still be apparent. We expect FY24e earnings will be supported by strong rental reversion.
The Positives
Resilient rental reversion of 15.7%,
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- Due to the lingering effects of COVID-19 base rents, we expect a rental reversion in the high teens for 313@somerset and in the low teens for Jem in 2025, as 20.3% of the lease by GRI is set to expire.
Stable operating metrics.
- Read more at SGinvestors.io.
