[SINGAPORE] Lendlease Global Commercial Real Estate Investment Trust (Reit) posted a marginal improvement of 1.8 per cent in its distribution per unit (DPU) to S$0.018 for the half-year of the 2025 financial year ended Jun 30.
The higher DPU – to be paid out on Sep 24 – was due to better performance of its Singapore properties and lower finance costs, said the manager of the Reit, Lendlease Global Commercial Trust Management, in a regulatory filing on Monday (Aug 4).
Revenue increased by 1.9 per cent to S$102.9 million, net property income was 2.7 per cent higher at S$73.8 million, while distributable income was S$44.1 million, up 4.8 per cent.
The cost of borrowing, meanwhile, was S$3.5 million lower than in the corresponding period in FY2024 amid a lower interest rate environment.
The cost of debt improved to 3.46 per cent per annum as at end-June, compared with 3.54 per cent per annum in the third quarter of FY2025, while interest coverage ratio improved to 1.6 times from 1.5 times during this period.
Full-year performance
However, DPU for the full year was 6.9 per cent lower at S$0.036 as revenue slipped 6.5 per cent to S$206.5 million, net property income dropped 10 per cent to S$148.8 million and distributable income slid 4.2 per cent to S$87.6 million.
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The reduction in revenue was mainly attributed to the upfront recognition of supplementary rent in relation to the return of Building 3 of the Sky Complex in Milan, Italy, in FY2024.
Operating expenses were S$2.2 million higher than in FY2024, due to the provision of doubtful debts for Cathay Cineplexes.
Portfolio valuation increased 2.2 per cent year on year, mainly supported by a bullish outlook for the Singapore properties.
Retail rental rose 10.2 per cent for the year, while that for commercial Building 1 and 2 in Milan was 1.7 per cent higher.
Committed occupancy was 92.1 per cent for the portfolio, with that for the retail assets at 99.5 per cent and for the office component at 86.6 per cent.
The weighted average lease expiry was 7.2 years and tenant retention was 83.3 per cent, both by net lettable area.
Lendlease Global Commercial Reit units closed 2.7 per cent or S$0.015 higher at S$0.565 on Monday, before the financial statements were published.
