Lendlease REIT - Phillip Securities Research 2026-05-20: Singapore Retail Portfolio Fundamentals Sound

• No financials were provided for 3QFY26. Retail rental reversion for year-to-date renewed leases increased 12.2%. Portfolio occupancy stood at 95.3% (+0.4 ppts q-o-q). Milan office Buildings 1 and 2 had CPI-linked rental uplift of 1.5% from Apr26. We expect retail rental reversion to remain in the low-double-digit range into 4Q26.

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The positives

(+) Retail rental reversion strong.

• Singapore retail rental reversion was +12.2%. Jem and 313@somerset delivered mid- to high-single-digit reversions, while PLQ Mall is expected to achieve higher reversions than legacy assets. Reversion was driven by resilient Chinese F&B operators, gold and jewellery, sporting goods, and athleisure tenants.

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(+) PLQ mall integration progressing well.

• With 100% of PLQ mall acquired as of Mar26, asset enhancement initiatives have been progressing on ~ 16,000 sq ft across levels 1 and 2. Level 1 is pre-leased, whereas level 2 leasing is in progress. The reconfigured spaces are expected to generate income starting in 2H27. PLQ Mall loans have also been refinanced, securing ~ S$2mil in annual all-in debt cost savings.

• The conversion of PLQ Mall to a limited liability partnership structure is targeted for completion by end Jun26. The PLQ Mall acquisition is expected to deliver 2% DPU accretion.

(+) Stronger capital structure.

• Read more at SGinvestors.io.

Hashim Osman Phillip Securities Research | https://www.poems.com.sg/ 2026-05-20

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