Nov 8, 2021
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The weighted average lease expiry sits at 8.51 years by net lettable area, and 4.4 years by gross rental income (GRI).

Lendlease Global Commercial REIT (LREIT) registered a portfolio occupancy of 99.8% during the first quarter of FY2022, ending on 30 September 2021.

Weighted average lease expiry (WALE) was also “long” at 8.51 years by net lettable area (NLA), and 4.4 years by gross rental income (GRI).

Occupancy rate for 313@somerset, for instance, “remained high at 98.9% with a high tenant retention rate of 90% as at 30 September 2021”, said LREIT’s manager in a business update on 5 November.

Tenant sales also continued to improve 14.1% year-on-year to $118.1 million during the first nine months of 2021.

LREIT also completed the acquisition of an additional stake in suburban mall Jem, bringing its interest at 31.8%.

“The acquisition has increased its exposure in the resilient suburban retail segment and is expected to bring stable income to LREIT’s unitholders,” said LREIT’s manager.

In the coming months, Jem is set to welcome coffee brands Flash Coffee and Huggs Collective, as well as new-to-market food and beverage concept store, Coco.cado. 

“As part of Lendlease’s proactive asset management strategy to improve asset returns, enhancement works were carried out to create additional leasable space to unlock value at Jem,” shared the manager.

Sky Complex continued to generate stable income for its office portfolio, with its tenant Sky Italia making timely rental payments.

As of 30 September, LREIT’s gross borrowings stood at $677.6 million, with a gearing ratio of 34.3%. The Lendlease Group and LREIT have undrawn debt facilities of $137.2 million-equivalent multicurrency to finance its working capital.

The weighted average debt maturity, on the other hand, stands at 2.3 years, with a weighted average running cost of debt of 0.90% per annum.

The manager revealed that LREIT plans “to make distributions to unitholders semi-annually and will distribute at least 90.0% of its adjusted net cash flow from operations for each financial year”.

“The actual level of distribution will be determined at the manager’s discretion,” it added.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg

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