- We cut our forecasts and reduce our Lendlease REIT's target price to S$0.65 from S$0.70 but maintain BUY for Lendlease REIT on a 6.1% yield, and 0.7x P/BV for FY24.
Higher finance cost
- - Read this at SGinvestors.io -
- Occupancy was stable on a same-store basis with a mid-teen positive rent reversion. Tenant sales flat-lined in line with system stats.
- Gearing was unchanged while borrowing cost crept up with refinancing and a higher hedge ratio.
Steady occupancy and reversions
- - Read this at SGinvestors.io -
- Adjusting for one-offs, FY24 revenue and NPI grew 3.1% and 1.3% y-o-y respectively, led by good Singapore retail mall operations.
- Portfolio occupancy was stable at 89.1% with malls fully occupied. Sky Complex saw a minor slippage in pre-commit for Building 3 but management of Lendlease Global Commercial REIT has seen healthy enquires which should bring back the pre-commit levels.
- Retail rent reversion for full year was healthy and maturing at +14% (9m +15.7%). Tenant sales grew +0.2% y-o-y for the full year with some seasonal slowdown in 4Q. Management indicated suburbs fared better than Orchard Road.
Managing its balance sheet
- 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/ 2024-08-07
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
