Lendlease Global Reit posts DPU of 1.29 S cents, 3.1% above IPO forecast

Lendlease Global Commercial Reit (Lendlease Global Reit) on Monday reported a distribution per unit (DPU) of 1.29 Singapore cents for its second quarter from its listing date Oct 2 to Dec 31.

The DPU is 3.1 per cent higher than its initial public offering (IPO) forecast of 1.25 Singapore cents.

It will be paid on March 16, after books closure on Feb 18.

Distributable income came in at S$15 million for the quarter, 2.4 per cent higher than the IPO forecast of S$14.7 million.

Gross revenue of S$21.4 million was 1 per cent higher than the S$21.2 million forecast, mainly driven by rental income from 313@somerset in Singapore.

This was partially offset by lower revenue from the Reit's Sky Complex in Milan due to the weaker euro.

Net property income of S$16.2 million exceeded the IPO forecast of S$15.7 million by 3.2 per cent, largely due to lower-than-expected property operating expenses.

As at Dec 31, Lendlease Global Reit had gross borrowings of S$529.2 million, which translates to a gearing ratio of 34.9 per cent.

Units in Lendlease Global Reit began trading on the Singapore Exchange's mainboard at 2pm on Oct 2, after its IPO ended with its public offer tranche 14.5 times subscribed. The counter ended its first day of trading at S$0.92, which was 4.5 per cent above its IPO price of S$0.88.

As at 10.27am on Monday, its units were up 0.5 Singapore cent or 0.6 per cent at S$0.905.