Lendlease REIT Reports Higher 2H FY2026 Revenue, DPU
KUALA LUMPUR, Aug 4 (Bernama) -- Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT (Lendlease REIT), has announced its second half (2H) and full-year financial results for FY2026, with gross revenue rising 6.8 per cent year-on-year (YoY) to SG$110.0 million in 2H FY2026. (SG$1 = RM3.19)
In a statement, the company said net property income (NPI) for 2H FY2026 increased 6.6 per cent YoY to SG$78.7 million, driven by the acquisition of PLQ Mall and the performance of its Singapore retail assets, partially offset by the divestment of the Jem office.
Distribution per unit (DPU) for 2H FY2026 stood at 1.85 Singapore cents, bringing the full-year DPU to 3.70 Singapore cents, up 3.0 per cent YoY, supported by recurring earnings from a strong portfolio of operational assets in Singapore.
“FY2026 marked a year of meaningful progress for Lendlease REIT. We took decisive steps to strengthen our financial position through the successful divestment of Jem office, reducing aggregate leverage to 38.9 per cent and improving our interest coverage ratio to 2.1 times.
“Looking ahead, our enlarged Singapore retail portfolio provides a stronger platform for growth. We remain committed to disciplined execution, active asset management and capital stewardship as we pursue further DPU growth and long-term value creation in FY2027,” said the manager’s Chief Executive Officer, Guy Cawthra.
Property operating expenses increased by SG$1.4 million compared with FY2025, mainly due to the acquisition of PLQ Mall, partially offset by the divestment of the Jem office.
As at June 30, 2026, Lendlease REIT’s gross borrowings stood at SG$1.7053 billion, with a gearing ratio of 38.9 per cent. The weighted average cost of debt was reduced to 2.75 per cent per annum, while approximately 68 per cent of borrowings were hedged at fixed rates.
The manager also reduced its outstanding perpetual securities through refinancing exercises undertaken in April 2025 and June 2026, lowering the total quantum from SG$400 million to SG$240 million.
In the same period, Lendlease REIT’s portfolio committed occupancy stood at 94.6 per cent. Its retail portfolio maintained a strong occupancy rate of 98.5 per cent, while occupancy at the Milan office portfolio stood at 89.1 per cent.
The company will continue pursuing active asset initiatives to drive income growth by unlocking value through the reconfiguration of retail space at PLQ Mall and refreshing Discovery Walk to integrate with the multifunctional event space.
-- BERNAMA