- Gross revenue and NPI declined by 13.6% and 19.8% y-o-y, respectively, accounting for 46% and 45% of our FY25e estimates. This was due to the absence of pre-termination fee paid by Sky Italia and the longer-than-expected backfilling of Building 3 Sky Complex.
- NPI margin was impacted by a one-off expense of ~£1mil for equipment repairs, which has yet to be capitalized, along with higher marketing expenses.
- - Read this at SGinvestors.io -
- Retail rental reversion remained resilient in FY25e, achieving 10.7% for retail and 1.2% for office, despite tenant sales falling 5.2% y-o-y.
- While Lendlease REIT's FY25e earnings are expected to benefit from low-teens rental reversion of both Singapore retail and Jem Office, DPU growth may be constrained by uncertainty surrounding the interest rate cut trajectory.
The Positives
Resilient rental reversion.
- - Read this at SGinvestors.io -
- Meanwhile, the rental review for Jem Office is in its final stages and is expected to conclude by Feb 25, retrospectively contributing to revenue from Jan 25 onwards. We anticipate a low-teens rental reversion.
The Negative
The backfilling of Building 3 at Sky Complex is taking longer than expected
- Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Liu Miaomiao Phillip Securities Research | https://www.poems.com.sg/ 2025-02-05
Previous report by Phillip:
2024-11-27 Lendlease Global Commercial REIT - Higher For Longer Interest Rate.
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 Dividend Payout Dates & Corporate Actions,
Lendlease REIT News
