Lendlease Global Commercial Reit posts 3% rise in H2 DPU to S$0.0185

[SINGAPORE] The manager of Lendlease Global Commercial Real Estate Investment Trust (Reit) posted a distribution per unit (DPU) of S$0.0185 for the second half ended June. This was up 3 per cent from S$0.018 in the previous corresponding period.

The higher DPU was mainly due to recurring earnings from a strong portfolio of operational assets, anchored by resilient Singapore malls, said the manager on Monday (Aug 3).

The distribution will be paid out on Sep 21, after the record date of Aug 12.

Distributable income for H2 rose 40 per cent to S$61.7 million, from S$44.1 million in the year-ago period.

Revenue rose 6.8 per cent year on year to S$110 million and net property income (NPI) increased 6.6 per cent on year to S$78.7 million. The higher takings were driven by PLQ Mall, following the Reit’s acquisition of the remaining 30 per cent stake in the mall in March this year, giving it full ownership.

Performance was also supported by its Singapore retail assets, partially offset by the divestment of Jem’s office component, said the manager.

Excluding PLQ Mall and Jem office, revenue and NPI for H2 would have risen 4.9 per cent and 6.6 per cent, respectively.

For the full year, DPU was up 3 per cent year on year at S$0.037 and distributable income rose 26 per cent on year to S$110.3 million. Revenue rose 2.6 per cent to S$211.9 million and NPI was up 2.7 per cent at S$152.7 million.

As at end June, Lendlease Reit’s portfolio committed occupancy was 94.6 per cent. Its retail portfolio had an occupancy rate of 98.5 per cent, while its Milan office portfolio recorded occupancy rate of 89.1 per cent.

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The portfolio weighted average lease expiry stood at 4.7 years by net lettable area and 3.6 years by gross rental income. Lendlease Reit’s portfolio valuation was S$4.2 billion as at end-June.

Its retail portfolio recorded positive rental reversion of 11.7 per cent for FY2026. Tenant sales and shopper visits grew 24 per cent and 16.4 per cent year on year, respectively. Excluding PLQ Mall, the tenant sales would have risen 4 per cent and visits would have gone up 5.2 per cent year on year.

Tenant retention rate was 70.8 per cent mainly due to the exit of Cathay Cineplexes, which has been replaced with Shaw Theatres. Excluding Cathay Cineplexes, the tenant retention would improve further to 79.6 per cent.

The manager said the reconfiguration of about 16,000 sq ft of retail space at PLQ Mall is expected to be completed by end-2026. It expects the project to support positive rental reversions and improve the mall’s retail offering.

Units of Lendlease Reit ended Monday 2.5 per cent or S$0.015 lower at S$0.575, before the release of its results.