Company Coverage
Lendlease Global Commercial REIT (LREIT SP): 2HFY26: Balance Sheet Strengthened With Reduced Reliance On Perpetual Securities
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.585
S$0.790
+35.0%
S$0.780
Analyst
Highlights
- LREIT maintained a healthy rent reversion of 11.7% in FY26 (313@Somerset: mid-single digit, Jem: high single digit and PLQ Mall: high teens). Growth in tenant sales was stronger at 4.0% yoy in FY26 (9MFY26: 2.5% yoy).
- LREIT continues to reduce its reliance on perpetual securities by issuing only S$120m of new perpetual securities to refinance S$200m due in Jun 26. Interest coverage ratio improved 0.5x yoy to 2.1x.
- LREIT provides an attractive FY27 DPU yield of 6.3% (CICT: 4.7%, FCT: 5.6%, SGREIT: 6.8%). Maintain BUY. Target price: S$0.79.
Analysis
- Lendlease Global Commercial REIT (LREIT) reported DPU of 1.85 S cents for 2HFY26 (+3.0% yoy), supported by improved performance from its retail malls in Singapore. The results were in line with our expectations.
- PLQ Mall leading the pack. Retail committed occupancy remained high at 98.5% (313@Somerset: mid-single digit, Jem: high single digit and PLQ Mall: high teens). Retail rental reversion improved to 11.7% in FY26 (313@Somerset: 98%, Jem: 100% and PLQ Mall: 96.3%). On a like-for-like basis excluding PLQ Mall, tenant sales increased 4.0% in FY26, driven by F&B, jewelleries & watches and sports. New tenants such as CHAGEE, Pawa Bakery and YIMANFEN were introduced across the portfolio. Tenant retention was 70.8% due mainly to the replacement of Cathay Cineplexes by Shaw Theatres. Excluding Cathay, retention would have been 79.6%.
Company Coverage
Lendlease Global Commercial REIT (LREIT SP): 2HFY26: Balance Sheet Strengthened With Reduced Reliance On Perpetual Securities
Highlights
- LREIT maintained a healthy rent reversion of 11.7% in FY26 (313@Somerset: mid-single digit, Jem: high single digit and PLQ Mall: high teens). Growth in tenant sales was stronger at 4.0% yoy in FY26 (9MFY26: 2.5% yoy).
- LREIT continues to reduce its reliance on perpetual securities by issuing only S$120m of new perpetual securities to refinance S$200m due in Jun 26. Interest coverage ratio improved 0.5x yoy to 2.1x.
- LREIT provides an attractive FY27 DPU yield of 6.3% (CICT: 4.7%, FCT: 5.6%, SGREIT: 6.8%). Maintain BUY. Target price: S$0.79.
Analysis
- Lendlease Global Commercial REIT (LREIT) reported DPU of 1.85 S cents for 2HFY26 (+3.0% yoy), supported by improved performance from its retail malls in Singapore. The results were in line with our expectations.
- PLQ Mall leading the pack. Retail committed occupancy remained high at 98.5% (313@Somerset: mid-single digit, Jem: high single digit and PLQ Mall: high teens). Retail rental reversion improved to 11.7% in FY26 (313@Somerset: 98%, Jem: 100% and PLQ Mall: 96.3%). On a like-for-like basis excluding PLQ Mall, tenant sales increased 4.0% in FY26, driven by F&B, jewelleries & watches and sports. New tenants such as CHAGEE, Pawa Bakery and YIMANFEN were introduced across the portfolio. Tenant retention was 70.8% due mainly to the replacement of Cathay Cineplexes by Shaw Theatres. Excluding Cathay, retention would have been 79.6%.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.585
S$0.790
+35.0%
S$0.780
Analyst
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