LENDLEASE Global Commercial Reit (Lendlease Global Reit) on Tuesday (Nov 7) posted a committed portfolio occupancy of 99.9 per cent for the first quarter ended Sep 30, unchanged from the previous quarter.

Weighted average lease expiry (WALE) stood at eight years when adjusted by net lettable area (NLA) and 5.3 years when adjusted by gross rental income (GRI). This is based on the assumption that Sky Italia, which the Reit has leased three Grade A office buildings to in Milan, does not exercise its break option in 2026, said the Reit manager.

It also noted that leases expiring in FY2024 have been de-risked to 3.9 per cent by NLA and 7.8 per cent by GRI in the first three months of FY2024.

The Reit manager highlighted a long WALE at 11.8 years by NLA and 14.3 years by GRI for its office portfolio, which will continue to generate stable income for Lendlease Global Reit’s unitholders.

Meanwhile, committed occupancy for the Reit’s retail portfolio stood at 99.7 per cent for the first quarter, with a tenant retention rate of 78.2 per cent by NLA. Its retail portfolio in Singapore comprises Jem and 313@somerset.

The Reit posted a positive retail rental reversion of 16.3 per cent on the back of healthy leasing activities and uplift in market sentiment, said the Reit manager.

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The manager pointed out that tenant sales have continued to trend above pre-Covid average levels and registered growth of 4.6 per cent year on year in Q1 FY2024. Visitation also grew 8.1 per cent year on year in the first three months of FY2024.

The Reit has a gearing ratio of 40.6 per cent with gross borrowings amounting to S$1.54 billion as at end-September. Approximately 61 per cent of its borrowings are hedged to a fixed rate.

Its weighted average debt maturity was 3.1 years, with a weighted average cost of debt of 2.94 per cent per annum.

It also has undrawn debt facilities of S$118.7 million to fund its working capital, and indicated no refinancing risks on committed debt facilities until FY2025.

Kelvin Chow, chief executive officer of the Reit manager, said the Reit will continue to strengthen its portfolio and exercise prudence in its capital management.

“Against a backdrop of global uncertainties, we are pleased to deliver a good set of operational performance underpinned by a proactive asset management strategy.”

Units of Lendlease Global Reit closed Tuesday 0.9 per cent or S$0.005 lower at S$0.555, before the business update.