Lendlease REIT Posts 10 Pct Retail Rental Reversion In 1Q FY2027

KUALA LUMPUR, Nov 2 (Bernama) -- Lendlease Global Commercial REIT (Lendlease REIT) recorded a positive retail rental reversion of 10.0 per cent for the first quarter of its financial year 2027 (1Q FY2027), while its weighted average cost of debt fell to 2.50 per cent a year from 2.75 per cent in FY2026.

Tenant sales rose 45.5 per cent year-on-year, and visitation grew 27.4 per cent, boosted mainly by the inclusion of PLQ Mall for the full quarter. Excluding PLQ Mall, like-for-like tenant sales increased 8.1 per cent and visitation 6.7 per cent.

“Despite ongoing global uncertainty and macroeconomic headwinds, we are encouraged by our strong start to FY2027,” said Lendlease Global Commercial Trust Management Pte Ltd Chief Executive Officer, Guy Cawthra, adding that the REIT would build on this momentum, supported by PLQ Mall’s full-period contribution and positive rental reversions secured over the past year.

Portfolio committed occupancy stood at 94.4 per cent as of Sept 30, 2026. Retail committed occupancy eased to 98.2 per cent from 98.5 per cent in the previous quarter, due to temporary vacancies from space reconfiguration works at PLQ Mall.

The reconfiguration of approximately 16,000 sq ft at PLQ Mall remains on track for completion by the end of 2026. New tenants during the quarter included Gentlewomen and LSOUL at 313@somerset, heytea and PastaGo at PLQ Mall, and Setirom at Jem.

In a statement, the REIT said portfolio’s weighted average lease expiry (WALE) remained healthy at 4.4 years by net lettable area (NLA) and 3.4 years by gross rental income (GRI), underpinned by a well-spread lease expiry profile with only 4.8 per cent of NLA and 7.7 per cent by GRI due for renewal in FY2027.

The lower cost of debt was mainly due to the refinancing of PLQ Mall-related loans at a lower borrowing cost. About 68 per cent of the REIT’s borrowings are hedged to fixed rates.

Gearing fell to 38.7 per cent as of Sept 30 from 38.9 per cent as of June 30, with gross borrowings of about SG$1.68 billion. The interest coverage ratio stood at 2.1 times. (SG$1 = RM3.17)

Lendlease REIT retained its Regional Sector Leader (Asia Retail Listed) title in the GRESB 2026 Assessment for the seventh consecutive year, with a score of 96.6 against the GRESB average of 80.9. It was also named Global Sector Leader (Retail Listed).

-- BERNAMA