Lendlease Global Commercial REIT Reports Lower DPU, Revenue For 1H FY2025

KUALA LUMPUR, Feb 4 (Bernama) -- Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT (LREIT) reports a 14.3 per cent drop in distribution per unit (DPU) to 1.8 cents for the first half financial results for 2025 (1HFY2025) ended Dec 31 2024, compared to 2.1 cents in the previous year.

According to a statement, the decline in DPU was primarily driven by higher finance costs, lower net property income (NPI), and an enlarged unit base.

Gross revenue for the period fell 13.6 per cent year-on-year (YoY), dropping from SG$119.9 million to SG$103.6 million. This led to a 19.8 per cent decrease in NPI, from SG$93.4 million in the same period last year to SG$74.9 million. (SG$1=RM3.27)

This was mainly attributed to the absence of supplementary rent in relation to the lease restructure of Sky Complex that was received and recognised upfront in December 2023.

On a proforma basis, after adjusting for this factor, gross revenue for 1HFY2025 was 0.4 per cent higher, while NPI was 2.2 per cent lower YoY.

LREIT’s portfolio committed occupancy improved to 92.3 per cent, with retail at 99.9 per cent while office at 86.6 per cent, with a weighted average lease expiry (WALE) of 7.2 years by net lettable area (NLA) and 4.6 years by gross rental income (GRI).

The rental reversion remained positive at 10.7 per cent, while office rental uplift was 1.2 per cent. Tenant retention rate was also maintained at a rate of 86.1 per cent.

Construction of a 48,200 square feet multifunctional event space adjacent to 313@somerset has commenced, with completion expected in the second half of 2026 with an estimated seating capacity of 3,000, the state-of-the-art music hall will feature multiple rooms and stages set up to host international tours as well as local artistes.

LREIT has secured SG$560 million in unsecured sustainability-linked loan facilities to refinance loans maturing in 2025. As of Dec 31, 2024, gross borrowings stood at US$1.565 billion, with a gearing ratio of 40.8 per cent.

--BERNAMA