- Lendlease Global Commercial REIT (SGX:JYEU) was hit by higher property tax and utilities costs. Distributable income was also affected by tenant incentives for Sky Complex apportioned to FY24. DPU of 1.77 cents for 2HFY24 (-21.2% y-o-y) is below our expectations.
- - Read this at SGinvestors.io -
Incurred higher property operating expenses.
- Gross revenue and NPI decreased 2.1% and 7.2% y-o-y respectively due to absence of rental income from Building 3 of Sky Complex in Milan after the lease restructure. Property operating expenses increased 13.5% y-o-y or S$3.5m due to higher property tax and utilities costs.
- Including the support from the supplementary rent, on a pro forma basis, gross revenue was 1.4% higher but NPI was 2.6% lower y-o-y. The supplementary rent of about €10m will be distributed to unitholders over a period of two years.
Resiliency at Jem and recovery at 313@Somerset.
- - Read this at SGinvestors.io -
- The two malls, namely 313@Somerset and Jem, achieved 100% occupancy. Tenant sales increased 0.2% y-o-y in FY24 and was 11% above pre-pandemic levels in 4QFY24. Essential services accounted for 57% of gross rental income.
Upside from rent review at Jem.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-08-07
Previous report by UOB:
2024-06-06 Lendlease Global Commercial REIT - 313@Somerset – Not Coasting Into The Sunset Yet.
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
