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Lendlease Global REIT
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PhillipTan
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13-Aug-2021 08:49
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Lendlease, SingPost, Paya Lebar Square to form pilot Business Improvement DistrictA Business Improvement District (BID) in the Paya Lebar Central precinct involving Lendlease, Paya Lebar Square Pte Ltd and SingPost Investments will introduce diverse community spaces for residents and visitors in the eastern part of Singapore.This will be the first such BID outside the central business district, and the three companies are aiming for greater liveability and interconnectedness, they said in a joint statement on Thursday evening. The Urban Redevelopment Authority (URA) launched the pilot BID programme in 2017 to support efforts by precinct stakeholders in the private sector to create vibrant districts and attractive public spaces across the country. The Paya Lebar Central partnership will take an experience-led approach, focusing on sustainability, active living and cultural diversity. For instance, it will encourage environmental stewardship through events and education landscaped green spaces in the precinct will be enhanced to offer spaces for the community to host a wide range of activities. The three companies will also collaborate with the Health Promotion Board and fitness partners to organise health and wellness events in the precinct. Paya Lebar Square Pte Ltd is wholly owned by mainboard-listed property developer and investor Low Keng Huat (Singapore). Lendlease is joining the partnership under an entity named Milano Central Pte Ltd. The BID task force will be chaired by Lendlease' s managing director of investment management for Asia, Gan Chong Min. Since URA launched the BID programme, five other precincts have been developed in the city centre they are Marina Bay, Marina Central, Raffles Place, Singapore River and Tanjong Pagar. URA' s director for place management, Jason Chen, said: " We are heartened that the stakeholders at Paya Lebar Central have likewise come together to implement initiatives that leverage the precinct' s distinctive character and create authentic places and experiences for people." Singapore Post' s shares rose 0.8 per cent or 0.5 Singapore cent to close at 64 cents on Thursday. Shares of Low Keng Huat were flat at S$0.47. |
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PhillipTan
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12-Aug-2021 04:15
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Lendlease, WWF-Singapore fill knowledge gap, not landfills, with mall waste reportLarge shopping malls in Singapore contributed 7% of the country' s total waste in 2018. Can malls, as hubs for consumerism, do more to reduce their waste while maintaining sales figures?To address this significant contribution of waste from retail, shopping malls in Singapore with more than 4,600 sq m of net lettable area have been made to submit their waste data and a waste reduction plan to the National Environment Agency (NEA) since 2014. Between 2014 and 2019, the average waste generated by the retail sector gradually fell from 52 kg/m2 to 45 kg/m2, with the recycling rate increasing from 6.7% to 11.4%. According to Lendlease and WWF-Singapore, the improvement is a result of installing food waste digesters and conducting recycling training for tenants here. The real estate group and conservation organisation together released on Aug 5 the Circularity in Retail: Tackling the Waste Problem report, a waste reduction guide for the retail sector in Singapore. The study referenced tenants' waste from Lendlease' s malls, namely 313@somerset, Jem and Parkway Parade between 2018 and 2019, along with waste data collected by an automated system at Paya Lebar Quarter (PLQ) in 2020. Across Lendlease malls (less PLQ), 26.7% of waste in 2018 was recyclable. The following year, the percentage of recyclable waste increased slightly to 28.9%. According to the study, this places the average recycling rate at more than 2.5 times Singapore' s average recycling rate of 11.4%. " We recognise that a key barrier to improving overall waste reduction is a lack of available data and reduction targets. This has limited our understanding of waste issues at the tenant level. At the same time, tenants may not always be aware of how much waste they may be generating," says Ng Hsueh Ling, managing director, Singapore and chief investment officer, Asia at Lendlease. " We have taken one of the first steps to filling that knowledge and data gap there' s still a lot to go," says Ng at a virtual presentation. The main types of waste that are recycled at the malls are paper and cardboard, metal and plastic, while certain malls also recycle food waste, glass, used cooking oil, horticulture waste and others. The report singled out plastic packaging from fashion tenants, which has the highest potential for recycling as it is not contaminated by food or other substances. Among tenants surveyed in February 2021, the overall plastic recycling rate among fashion tenants was 12.8%. " More could be done to segregate polybags, a polythene bag used in deliveries and packed garments, since they form the majority and have the highest recycling value compared to other plastic packaging," notes the report. " Compared to the waste data for the three malls in 2019, if the plastic recycling rate could be increased to 80%, fashion tenants could potentially contribute 0.5 to four times more plastic collected in terms of weight." Over at food courts, single-use containers, cutlery and straws make up the majority of plastic waste. Plastic wrappers, used in bulk purchases of bottled drinks and cans, made up 40.2% of plastic packaging from food courts in February, while beverage bottles nearly matched the figure, at 39.4%. " Most plastic packaging cannot be recycled due to food contamination. These items, even if they were placed into the recycling bin, would be picked out and discarded as general waste instead," reads the report. " However, it is interesting to note that transparent cups and beverage bottles are accepted for recycling if they are empty." That said, supermarkets are the culprits of producing the widest variety of plastic waste. Styrofoam boxes made up more than half of plastic packaging waste in February, with shrink wrap contributing some 8% and large plastic bags making up some 42%. " Almost half of the packaging, which is made of expanded polystyrene (EPS, or styrofoam) cannot be recycled, according to the waste contractor. The limitation is due to the lack of appropriate technology to recycle EPS in the region, thus rendering it non-recyclable," notes the report. Beyond consumer and tenant education, Jenny Khoo, head of asset operations at Lendlease, believes regulatory bodies could strengthen this obligation and close the " big gap" in recycling figures. " Some do not realise how they can contribute to this cause of making our planet a more sustainable place for us to live in," says Khoo. " The challenge now is that it is not compulsory for everyone to be on this journey. If it can be regulated, that will help us." Currently, Lendlease' s recycling programme is voluntary for tenants and there is no regulatory obligation for tenants who do not comply with waste management targets. In the report, Lendlease urges regulatory bodies to make waste management clauses mandatory in mall leases and introduce a penalty for non-compliance. Lendlease also calls for an expansion of NEA' s Extended Producer Responsibility policy, which began in January 2020 for electrical and electronic producers, to include medium-sized companies that occupy an area within a retail mall over a certain size or tenants from a particular retail sector. Besides a top-down approach, Dr Amy Khor, senior minister of state at the Ministry of Sustainability and the Environment, also called on shoppers to do their part to minimise waste in her keynote address. " Shoppers: we can play a part, too, by bringing our own reusable bags and containers and choosing to support sustainable businesses. No effort is too small and collectively, we can make a difference." |
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Joelton
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11-Aug-2021 09:21
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Lendlease Global Reit posts 33 per cent increase in H2 DPU amid retail recovery
LENDLEASE Global Commercial Reit Lendlease Reit: JYEU +3.47% (Lendlease Global Reit) on Tuesday posted a distribution per unit (DPU) of 2.34 Singapore cents for the half-year ended June 30, up 32.8 per cent from 1.76 cents a year ago on the back of recovery in retail activity.
Gross revenue was up 8.5 per cent to S$37 million, from S$34.1 million a year ago.
The manager attributed this rise to the lower rental waivers granted to tenants at 313@somerset as the economy reopens, as well as higher revenue from its Sky Complex development in Milan due to foreign exchange.
At 313@somerset, the manager also noted that tenant sales rose by 33.7 per cent to S$81.5 million, while visitation rose by 6.2 per cent to 11.5 million during the same period as sales at fashion & accessories and food & beverage (F& B) tenants improved by 37 per cent year on year.
Net property income (NPI) grew to S$26.5 million from S$24.1 million the year before, up 10 per cent.
Distributable income rose 33.5 per cent to S$27.6 million, from S$20.7 million the previous year.
The distribution will be paid out on Sep 14, after books closure on Aug 18.
Meanwhile, for the full year ended June 30, DPU rose 14.6 per cent to 4.68 cents from 4.08 cents a year ago, and distributable income rose 15.3 per cent to S$55.1 million from S$47.8 million. Gross revenue was up 5.6 per cent to S$78.7 million from S$74.5 million, while NPI rose 5.4 per cent to S$56.9 million from S$54 million in the same period.
Going forward, the Reit manager expects tenant sales and visitation at 313@somerset to remain muted as the government adopts a targeted approach to calibrate the resumption of economic and community activities.
" Demand for retail space will likely remain soft with the continued safe distancing measures being implemented and border closures. In the short term, the weak demand may continue to weigh on rental performance," it said.
As for the office sector in Milan, the Reit manager noted that vacancy rates in Milan remained stable at 9.6 per cent in Q1 2021. It also noted growing interest from small and medium-sized enterprises as more than 60 per cent of transactions recorded were for spaces under 1,000 square metres.
Still, it cited a Cushman & Wakefield report showing that the office absorption rate for the next five years is expected to be lower than in the past five years.
" Businesses, in the short term, will continue to assess the structural impacts of Covid-19 on future demand for office space and how the space could be transformed from being just a place to work to becoming a place where employees gather to interact and collaborate," it said.
Overall, the manager noted that the Reit&rsquo s portfolio occupancy remained high at 99.8 per cent as at June 30, with a long weighted average lease expiry of 8.8 years by net lettable area and 4.5 years by gross rental income.
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Goldfinger
Supreme |
10-Aug-2021 12:34
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Very good results | ||
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PhillipTan
Supreme |
10-Aug-2021 12:07
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Lendlease Global Commercial REIT posts 32.8% higher 2H21 DPU of 2.34 centsLendlease Global Commercial REIT (LREIT) has reported distributable income of $27.6 million for the 2HFY2021 ended June, an increase of 33.5% y-o-y.This brings FY2021 distributable income to $55.1 million, an increase of 15.3% y-o-y. Distribution per unit (DPU) stood at 2.34 cents for the 2HFY2021, up 32.8% y-o-y, while DPU for the FY2021 stood at 4.68 cents, up 14.6% y-oy. Gross revenue for the 2HFY2021 rose 8.5% y-o-y to $37 million, driven by lower rental waivers granted to the tenants at 313@somerset and higher revenue from Sky Complex due to foreign exchange. The increase in gross revenue has resulted in a higher net property income (NPI) of $26.5 million for 2HFY2021, up 10% y-o-y. For FY2021, gross revenue and NPI increased 5.6% and 5.4% y-o-y to $78.7 million and $56.9 million respectively. Property expenses in FY2021 were $1.3 million, 6.3% higher y-o-y, mainly due to the provision of $2.3 million doubtful debts amid the impact of Covid-19 on some tenants at 313@somerset. However, this was partially offset by lower marketing, insurance, salary & related expenses, operating expenses and utilities expenses. Gross borrowings were $553.7 million as at June 30 with a gearing ratio of 32%, down from 35.4% as at March 31. The weighted average debt maturity was 2.2 years with a weighted average running cost of debt of 0.88% per annum. As at June 30, LREIT' s portfolio occupancy stood at 99.8%, with a weighted average lease expiry (WALE) of 8.8 years by net lettable area (NLA) and 4.5 years by gross rental income (GRI). LREIT' s aggregate portfolio property value stood at S$1.45 billion based on independent appraisals of LREIT' s investment properties. 313@Somerset' s occupancy rate climbed 0.6 percentage points to 99.2% as at June 30 on the back of three new tenants secured, while tenant retention rate stood at 61.5%. Tenant sales and visitation rose 33.7% and 6.2% y-o-y to $81.5 million and 11.4 million in 2HFY2021 respectively. During the same period, fashion & accessories and food & beverage tenants, which accounted for approximately 45% by portfolio GRI, continued to improve its sales by 37% y-o-y. For its Sky Complex office building in Italy, the manager reports that the asset remains " resilient" with its tenant, Sky Italia making all its rental payments in a timely manner. In the near term, the manager expects the three grade A offices to remain resilient and continue to generate stable income for LREIT' s unitholders. The manager also highlighted the strong approval by unitholders for the increase in indirect interest held in Jem, with 99.91% votes in favour of the proposal at the extraordinary general meeting held on July 26. Post-completion of the acquisition, LREIT will have an enlarged portfolio size of up to $1.8 billion. " We are heartened and encouraged by the resounding support and decisive vote from our Unitholders. This is indeed an endorsement of confidence for the REIT, the Board and the Management team. We will continue to focus on optimising LREIT' s portfolio and its performance, and to deliver stable returns to our Unitholders," says Kelvin Chow, CEO of the Manager. Looking ahead, the manager anticipates demand for Singapore retail space to remain soft with the continued safe distancing measure and border closures being implemented, which will continue to weigh on rental performance. It has a more upbeat outlook for the Milan office industry, noting that business and consumer confidence continued to improve in June, while vacancy rates in Milan remained stable at 9.6% in the 1Q2021. The manager also discloses that LREIT intends to make distributions to unitholders semi-annually and will distribute at least 90% of its adjusted net cashflow from operations for each financial year after June 30. The actual level of distribution will be determined at the manager' s discretion. LREIT intends to distribute 100% of its adjusted net cashflow from operations for the period from its listing date of Oct 2, 2019 (being the date LREIT was listed) to the end of June 30. Units in LREIT closed 0.5 cents or 0.58% lower at 86.5 cents on August 6. |
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PhillipTan
Supreme |
06-Aug-2021 17:20
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Lendlease appoints new CFO, three managing directors to its Asia leadership teamLendlease has appointed Sonia Khan as chief financial officer (CFO), Asia, to its leadership team.Khan comes with over 19 years' experience, with the last eight years in Asia. She is a CFA Charterholder and has held roles pertaining to strategy, mergers and acquisitions, as well as financial, risk and capital management, with her most recent role being the executive general manager finance in TRX & Malaysia. Khan replaces former CFO, Asia, Justin Gabbani, who was appointed the CEO, Asia in June. Her role is effective immediately. Lendlease has also appointed Sam Okeby as managing director, development, Asia Steve Willett as managing director, construction, Asia and Guy Cawthra as managing director, investment and capital markets, Asia. Okeby is head of office and industrial in Sydney, while Willett is currently the role of regional operations director Asia based out of Singapore and Kuala Lumpur. Cawthra is responsible for investment and capital markets. |
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coco66
Member |
23-Jul-2021 16:46
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FAQ #2: Good time to buy now? My persona take: This is a Reit. Capital appreciation takes time as the commodity (ie. real estate) appreciates and expands. Hence, I would consider the Long term potential trend when deciding whether to buy now or not. If the Long term trend is up (eg. there is room for growth), then if u buy now, u will still stand to benefit. It' s hard to catch the best price at this instance due to price fluctuations that occur with any stock. Long term trends will overwrite any short term flunctuations. In the meantime, can sit back and collect dividends. Next dividend will be declared in August |
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coco66
Member |
07-Jul-2021 14:51
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FAQ Will there be a rights issue? NO. LL has confirmed that the acquisition of JEM will be funded by debt / perpetual bonds only (without any rights). Separately, to reward the manager of LL for successfully completing the acquistion of JEM, LL reit will pay the manager in the form of new LL shares (as opposed to cash). This is good for shareholders as the manager would have a higher stake in the reit, and their interest would be aligned with retail shareholders. |
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cmengchan
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03-Jul-2021 10:22
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Boarding up started. So expect to see construction and more detailed plan on how it can leverage the 313 youth oriented retail offerings. | ||
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coco66
Member |
28-Jun-2021 20:31
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Top Bidder (unknown) wanted to pay 4 times more. LL pays 4 times less.
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PhillipTan
Supreme |
24-Jun-2021 11:37
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DBS - Ideas of the Day Trending Sectors - Reopening beneficiaries Pandemic to endemic - Singapore is preparing a roadmap for COVID-19 being endemic as more people are vaccinated in the weeks/months ahead - Next milestone is for two-thirds of the population to be vaccinated by National Day - In time, COVID-19 will be treated as any other endemic diseases such as dengue and HFMD - Focus will then turn to the number of hospitalisations compared to number of infections, large gatherings can be allowed, businesses needed not fear disruptions - Eventually, no-quarantine international travel will be possible using vaccine certificates to countries that have also brought the disease to an endemic norm - Positive for domestic reopening names: (1) public transportation - ComfortDelGro, (2) retail REITs - Frasers Commercial Trust, Lendlease Global, Mapletree Commercial Trust, (3) office -Keppel REIT. |
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Thiamm
Veteran |
24-Jun-2021 08:09
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Dr Wealth failed FA
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zeally
Member |
23-Jun-2021 22:56
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Lendlease global reit do not own parkway parade and PLQ. These 2 malls are under the sponsor - lendlease. | ||
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coco66
Member |
23-Jun-2021 21:45
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https://www.drwealth.com/landlease-global-commercial-reit-break-out/ From DrWealth: With Lendlease, I can' t help but feel that they have an amazing accumen when it comes to their retail portfolio. Almost all their retails malls (with the exception of POMO) seem to have some kind of positive catalyst that could spurring their growth forward.
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PhillipTan
Supreme |
21-Jun-2021 09:55
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DBS - Market View Update STI support at 3060 - July rebound should follow the June correction - S& P500 fell 1.3% on Friday on rising interest rates uncertainty after a FED official said rates could rise as soon as end-2022 - Cyclicals led the decline while sectors with growth seen as more resilient to a rising interest rates outperformed. - Energy, utilities, and financials underperformed while consumer discretionary, technology and telecom sectors outperformed - The wide trading range from 3200-3300 (13.78x +0.5SD 12-mth fwd PE) to 3060 (below 13.18x average 12-mth fwd PE) should continue in coming month/s - July is a seasonally positive month, and this year should be no exception, underpinned by interim dividend announcement for banks (UOB, OCBC) and technical rebound for the broader market - We think the current decline should find support at 3090-3100 or worst case 3060 - While the current heightened measures will impact 2Q results, we are positive on domestic reopening names beyond the upcoming reporting season as Singapore prepares for a more robust and sustainable reopening with rising vaccination rates (e.g. FCT, Mapletree Commercial Trust, Lendlease Global, Keppel REIT, ComfortDelgro) |
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coco66
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19-Jun-2021 10:30
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Time to shoot to IPO price and beyond 🚀 , with the latest prime acquisitions |
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coco66
Member |
18-Jun-2021 16:43
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LL reit was the 2nd Lowest Bidder for the Grange Road plot of land that will be redeveloped by next year. That means more dividends in 2022. [Source: @ 35:20 min https://youtu.be/El517WLx09A] |
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Joelton
Supreme |
08-Jun-2021 11:22
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Lendlease Global Reit proposes to raise stake in Jem to up to 31.8%
LENDLEASE Global Commercial Reit has proposed to raise its stake in Jem mall to up to 31.8 per cent for a purchase consideration of between S$204.1 million and S$337.3 million, the manager said on Monday.
The Reit' s trustee has entered into sale-and-purchase agreements with various vendors to acquire stakes in two private funds, Lendlease Jem Partners Fund Limited (LLJP) and Lendlease Asian Retail Investment Fund 3 Limited (ARIF3). They own 25 per cent and 75 per cent of Jem, respectively.
Lendlease Global Reit currently holds an indirect interest in Jem through its 5 per cent interest in ARIF3, acquired in October 2020.
On a pro-forma basis, assuming the acquisition was effective at the end of the first half of fiscal 2021, it would have boosted the Reit&rsquo s DPU by 3 per cent to 2.41 Singapore cents, from 2.34 cents. If the proposed deal was completed on Dec 31, 2020, net asset value per unit would have slid to 0.84 Singapore cents from 0.85 cents.
As part of the proposed acquisition, the Reit' s trustee will acquire a 53 per cent interest in LLJP for S$159.1 million from third-party vendors. The trustee will also acquire a 5 per cent interest in ARIF3 from Lendlease International for S$45 million.
It may raise its stake in ARIF3 to 19.8 per cent from other third-party investors for S$178.2 million, assuming the amount paid to these investors does not exceed ARIF3' s net asset value per share.
If the trustee acquired 19.8 per cent interest in ARIF3, the total acquisition cost will be S$347.1 million. The total acquisition cost comprises the purchase consideration of up to S$337.3 million, subject to post-completion adjustments, up to S$3.4 million acquisition fee payable to the manager, as well as up to S$6.4 million in other fees and expenses.
Post-completion, Lendlease Global Reit is expected to hold an effective 20.8 per cent to 31.8 per cent indirect interest in Jem.
The acquisition is based on Jem&rsquo s agreed property value of about S$2.08 billion, at a discount of around 0.4 per cent to S$2.09 billion - the higher of two independent valuations conducted on Jem by the manager and trustee.
The manager appointed CBRE, which valued Jem at S$2.06 billion, while the trustee appointed JLL, which valued Jem at S$2.09 billion.
The manager said the proposed deal will be funded through debt, or a combination of debt and proceeds from the issuance of perpetual securities. The proposed acquisition is also conditional on unitholders' approval and is expected to complete by Sept 30, 2021.
Kelvin Chow, chief executive of the manager, said the proposed acquisition will enhance Lendlease Global Reit' s income diversification.
" The enlarged portfolio size of S$1.8 billion will have a diversified asset base and an increased exposure to more resilient suburban retail and decentralised office segments," he said.
Moreover, the single largest asset by aggregate value of the enlarged portfolio would also have decreased to 55.1 per cent from 67.6 per cent.
Jem is an integrated office and retail asset located at 50 and 52 Jurong Gateway Road, next to Jurong East MRT Station and bus interchange. It has six levels of retail space and 12 levels of office space, which has been fully leased to the Ministry of National Development of Singapore.
The property has a leasehold of 99 years that started on Sept 27, 2010, a gross floor area of about 1.2 million square feet (sq ft) and a net lettable area of 892,148 sq ft.
Reasons for the proposed acquisition include Jem&rsquo s strategic location and attractive market fundamentals, as well as the mall being a &ldquo resilient suburban asset with strong sustainability credentials&rdquo .
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PhillipTan
Supreme |
07-Jun-2021 09:28
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Lendlease Reit: JYEU +0.65%: The manager on Monday proposed to raise the real estate investment trust' s interest in Jem to up to 31.8 per cent through stake acquisitions in two private funds which jointly own the mall. The purchase consideration is between S$204.1 million to S$337.3 million, subject to relevant post-completion adjustments. The counter closed flat at S$0.77 on Friday. |
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Joelton
Supreme |
03-Jun-2021 09:27
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CGS-CIMB positive on Lendlease Reit on potential acquisition
CGS-CIMB in a Tuesday report was positive on Lendlease Global Commercial Real Estate Investment Trust (LReit) after its recent inaugural issuance of perpetual securities, which the research house believes will mainly be used for potentially accretive acquisitions.
In May, the Reit issued S$200 million in perpetual securities at 4.2 per cent per annum, an upsize from its initial transaction of S$150 million with a tightened price from the initial guidance of 4.35 per cent, after strong demand led to oversubscription.
CGS-CIMB analysts Eing Kar Mei and Darren Ong said in the report: " The issuance of perp does not come as a total surprise given the relatively higher cost of equity in LReit, which makes accretive acquisitions difficult."
They believe that the issuance will go towards acquiring a second stake in integrated office and retail development Jem, one of its three right of first refusal assets in Singapore. The Reit had previously acquired a 5 per cent stake in Lendlease Asian Retail Investment Fund 3 Ltd, which holds 75 per cent of Jem.
CGS-CIMB has maintained " add" on LReit, with a raised target price of 86.9 Singapore cents, from 85.8 cents previously.
" Considering the amount of perp securities raised and estimated debt headroom of approximately S$120 million at 40 per cent gearing, we believe LReit could be looking at acquisitions sized S$200 million to S$300 million with gearing likely to be maintained below 40 per cent for acquisition flexibility in the future, Ms Eing and Mr Ong said.
LReit' s main intention for that acquisition was to gain pre-emptive rights to increase its strategic stake in the fund over time if other investors were to divest their interests, the analysts added. They also noted that the Reit has no refinancing needs until FY2023.
A drop in shopper traffic and tenant sales due to Singapore' s Phase 2 (Heightened Alert) restrictions will impact the performance of LReit' s Orchard Road 313@Somerset property, due to its location and the fact that more than a third of the mall' s FY20 gross rental income came from food & beverage outlets. Carpark vacancy has also seen a sharp increase.
However, the CGS-CIMB analysts do not expect the impact on the Reit' s overall financial performance from potentially weaker-than-expected rental reversion to be substantial, as the leases will be spread out as and when leases are up for renewals.
As at Q3 FY2021, only 6 per cent and 20 per cent of leases by gross rental income were up for renewals in FY2021 and FY2022 respectively. In addition, about 60 per cent of the mall' s net lettable area is embedded with annual rental escalations of about 3 per cent.
Rental rebates for its tenants will have a larger impact on the bottomline, the analysts said. " If LREIT gives out one month of rental rebates to all its tenants at 313, our FY2021 DPU (distribution per unit) will fall by 5.8 per cent." However, they added that LReit has not given out any since July 2020.
Furthermore, operational commencement of the Grange Road Carpark event space in 2022, which has brought the Reit many reverse leasing enquiries, will likely help to offset the slower recovery at 313@Somerset.
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