Lendlease Global Reit improves its committed portfolio occupancy to 95% for Q1 FY 2026
The Reit manager credits the rise from 92.1% in the preceding quarter to ‘active leasing efforts’ for a property in Milan
[SINGAPORE] Lendlease Global Commercial Reit on Thursday (Oct 30) posted a committed portfolio occupancy of 95 per cent for its first quarter ended Sep 30, up from 92.1 per cent in the previous quarter.
This was “driven by active leasing efforts” for Building 3 of the Sky Complex property in Milan, Italy, the real estate investment trust (Reit) manager said in a business update for Q1 FY2026.
As at Sep 30, Lendlease’s retail portfolio occupancy stood at 99.6 per cent, with a positive rental reversion of 8.9 per cent.
However, its tenant retention rate fell to 52.2 per cent, mainly due to the exit of Cathay Cineplexes, which has since been replaced by Shaw Theatres. Excluding Cathay Cineplexes, tenant retention would have been 72.9 per cent, its manager noted.
Guy Cawthra, chief executive officer of the manager, said: “The portfolio continued to demonstrate resilience this quarter, underpinned by healthy operating metrics and disciplined capital management.”
The manager highlighted that visitor traffic continued to improve in Singapore, rising 7.7 per cent year on year, supported by targeted initiatives and active engagement efforts. These included campaigns by Singapore government agencies and marketing efforts at 313@somerset, aimed at boosting overall footfall and international interest along Orchard Road.
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Tenant sales dipped 0.8 per cent year on year during the quarter. Excluding contributions from Cathay Cineplexes, tenant sales remained “largely stable”, said the manager.
It also announced that the divestment of its Jem office component is expected to be completed by Nov 12.
It was agreed in August that the office component, part of the Jem commercial-retail development, would be sold to Keppel for S$462 million.
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The net proceeds from that will be used to repay borrowings, reducing aggregate leverage to about 35 per cent and breaking associated hedges.
About S$8.9 million in gains from the disposal will also be available for distribution to unitholders.
Following the divestment, the Reit’s weighted average lease expiry by net lettable area will be 4.7 years, from seven years as at Sep 30, 2025 for the full portfolio.
“With the divestment of Jem Office nearing completion, we feel confident that Lendlease Reit is well positioned for resilient growth,” said Cawthra.
The Reit also refinanced S$115.5 million of loans during the quarter.
Gross borrowings stood at about S$1.7 billion, with a weighted average debt maturity of 2.6 years and a gearing ratio of 42.7 per cent.
Lendlease’s manager noted that its unit price has risen approximately 14 per cent so far this year, outperforming the FTSE ST Reit Index by around five percentage points since January 2025. This followed its September inclusion in the iEdge Singapore Next 50 Index, which enhanced its visibility and broadened the Reit’s investor base.
Average daily trading volume has doubled to roughly 10 million units, or around S$6 million by value.
Units of Lendlease Global Commercial Reit closed 1.5 per cent or S$0.01 lower at S$0.65 on Thursday, before the business update.
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