- Although interest rates have peaked, we expect that the all-in cost of borrowing for Lendlease Global Commercial REIT will hover at the current high level of ~3.7% in FY25e. This is due to the high proportion of loans tied to fixed rates, which will delay the benefit of any future interest rate cuts for Lendlease Global Commercial REIT.
- - Read this at SGinvestors.io -
- Lendlease REIT's share price is trading at an FY25e/FY26e yield of 6.6%/7.3% and a P/NAV of 0.76x.
Outlook
- - Read this at SGinvestors.io -
- We believe divestment is the most viable solution to address the high gearing. JEM is well-positioned for this, given its long lease tenure and credible anchor tenant, the Ministry of National Development. The upcoming rental review in Dec 24 is likely to bolster its valuation, and we expect the sale price to align with its current book value of at least S$450mil. If the proceeds are fully utilized to repay debt, we estimate Lendlease Global Commercial REIT's gearing could decline by ~8%.
Earnings revision
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Liu Miaomiao Phillip Securities Research | http://www.poems.com.sg/ 2024-11-27
Previous report by Phillip:
2024-11-13 Lendlease Global Commercial REIT - Cost Of Borrowing Peaks.
Price targets by 2 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
