Lendlease Global Commercial REIT’s Singapore Portfolio Achieves Positive Retail Rental Reversion and Office Rental Uplift in 3Q FY2025

Core Insights - Lendlease Global Commercial REIT (LREIT) reported stable operational performance with a committed occupancy rate of 92.1% as of March 31, 2025, and a well-spread lease expiry profile [3][5][15] - The retail portfolio achieved a high occupancy rate of 99.5% with a positive rental reversion of 10.4%, although tenant sales declined by 5.1% year-to-date due to a softer retail landscape [5][9] - The company successfully refinanced S$200 million of perpetual securities at a lower coupon rate of 4.75%, reducing overall debt costs and gearing to 38.0% [12][14][15] Operational Performance - LREIT's portfolio maintained a committed occupancy of 92.1% as of March 31, 2025, with only 1.2% of net lettable area (NLA) and 2.4% of gross rental income (GRI) due for renewal in FY2025 [3] - The retail portfolio's tenant retention rate was healthy at 87.9%, while the office portfolio occupancy stood at 86.6% [5][8] - New tenants signed during the quarter included Shaw Theatres, lululemon, Chagee, and 2 Street, enhancing the tenant mix [6] Asset Management and Development - LREIT is redeveloping a car park at Grange Road into a multifunctional event space, with construction on track for completion by the second half of 2026 [4][9] - Refurbishment works to upgrade restroom facilities at Jem are underway, scheduled for phased completion by Q1 2026 [7][9] Capital Management - LREIT issued S$120 million in perpetual securities at a 4.75% annual rate to refinance existing securities, with net proceeds used to reduce debt and lower gearing [12][14] - As of March 31, 2025, gross borrowings were S$1,451.7 million, with a weighted average debt maturity of 1.8 years and approximately 76% of borrowings hedged to fixed rates [13][14] Strategic Outlook - The CEO emphasized the importance of managing capital positions and pursuing asset recycling options to reduce gearing, while also planning for strategic growth [15]