Lendlease Global Commercial Reit H1 DPU up 2.1% to S$0.0245
THE manager of Lendlease Global Commercial Reit (Lendlease Reit) posted distribution per unit (DPU) of S$0.0245 for the first half FY2023 ended December 2022, up 2.1 per cent from S$0.024 in the corresponding period a year ago.
Distributable income rose 95.9 per cent to S$56 million, from S$28.6 million in the previous year.
Gross revenue more than doubled to S$101.7 million in H1 FY2023, from S$39.2 million in H1 FY2022. The increase was mainly due to contributions from Jem, which was acquired in April 2022, as well as the easing of Covid-19 measures.
This was partly offset by lower revenue from the Sky Complex office asset in Milan due to a weaker euro against the Singapore dollar.
Net property income surged to S$76.4 million, from S$29.6 million.
The DPU for H1 will be paid out on Mar 30.
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Committed occupancy rate at Lendlease Reit’s retail portfolio stood at 99.5 per cent as at Dec 31, 2022, with a positive retail rental reversion of about 2 per cent for the period.
Its office portfolio saw positive rental escalation of about 4 per cent, with a weighted average lease expiry (Wale) of 12.4 years by net lettable area and 15.3 years by gross rental income.
The real estate investment trust (Reit) manager said the long Wale ensured “a stable income stream” for unitholders.
“We are optimistic that Lendlease Reit’s retail assets will benefit from China’s reopening to generate higher footfall and tenants’ sales for our retail properties,” said Kelvin Chow, chief executive of the Reit manager.
Lendlease Reit’s aggregate leverage stood at 39.2 per cent as at Dec 31, 2022, down from 39.4 per cent as at end-June.
Its weighted average cost of debt rose to 2.35 per cent, from 2.24 per cent previously, while interest coverage ratio fell to 5.5 times, from 6.9 times previously.
Units of Lendlease Reit closed flat at S$0.735 on Tuesday (Feb 7), before the results announcement.
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