LENDLEASE Global Commercial Reit (Lendlease Global Reit) on Tuesday (May 9) reported a committed portfolio occupancy of 99.8 per cent for the third quarter (Q3) ended Mar 31, 2023, unchanged from the previous quarter. 

In a Q3 business update, the real estate investment trust’s (Reit) manager said its portfolio’s weighted average lease expiry (Wale) for the period stood at 8.3 years by net lettable area (NLA) and 5.4 years by gross rental income (GRI).

As at Mar 31, 2023, the Reit’s retail portfolio occupancy stood at 99.5 per cent, with positive year-to-date retail rental reversion of 3.3 per cent.

It further noted that in Q3 2023 tenant sales were up 4.6 times, driven by the acquisition of Jem in April 2022, while visitation increased 2.7 times year on year.

It added that Singapore retail sales, excluding motor vehicles, rose 11.7 per cent in February 2023 on the back of rising demand for food and alcohol, apparel and footwear.

Despite ongoing costs and operational challenges, retailers remain optimistic about tourism recovery and consumer spending, said the manager.

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As at end-March, tenant retention rate stood at 79.5 per cent for the Reit’s retail portfolio, based on year-to-date completed lease renewal by NLA.

Lendlease Global Reit’s Grade-A office in Milan, Sky Complex, remains 100 per cent leased to Sky Italia, a subsidiary of Comcast Corp.

The manager noted that Sky Complex’s positive office rental escalation of about 4 per cent, and long office Wale of 12.2 years by NLA and 15 years by GRI, will continue to provide a stable income stream for the Reit’s unitholders.

Kelvin Chow, chief executive of the manager, said: “Our assets continued to perform well, underpinned by a high portfolio occupancy with a long Wale of 5.4 years by GRI, which will ensure long-term cash flow stability.”

“With refinancing out of the way, we plan to focus on organic growth through proactive asset management and managing our leases,” he added.

Units of Lendlease Global Reit fell S$0.01 or 1.5 per cent to S$0.675 on Tuesday.