They do but with an occupancy rate at ~30%, they are probably better off trying to divest it (if they could at valuation pricing) and use the proceeds to par down debt. The see-through ICR taking into account perps can then improve and that can be helpful for them with getting an improved cost of capital for subsequent issuances.
dontbetray ( Date: 11-May-2025 12:51) Posted:
Many ppl forgot they have properties in Italy' s
Implications for LREIT and Similar REITs:
Positive Tailwinds:
Lower interest rates in Europe may reduce financing costs for assets like LREIT&rsquo s Sky Complex in Milan
Could ease valuation pressure on European commercial real estate and support cap rates
Disinflation in Europe reduces cost pressures for tenants, potentially aiding occupancy and rental stability
Ongoing Risks:
Weak eurozone growth means limited demand for office space, which is relevant for the underperforming Sky Complex (currently ~31% occupancy)
Trade war and tariffs could hit tenant sentiment and expansion plans, especially for global tenants in Milan
Currency risk: a stronger euro might pressure LREIT&rsquo s SGD-reported earnings unless hedged effectively
Conclusion:
The ECB' s rate cut and dovish tone are moderately positive for LREIT in the medium term, particularly as lower euro interest rates may help mitigate debt costs on European assets and support valuations. However, unless occupancy improves at Sky Complex, the benefit will be capped.
Lower interest rates in Europe may reduce financing costs for assets like LREIT&rsquo s Sky Complex in Milan
Could ease valuation pressure on European commercial real estate and support cap rates
Disinflation in Europe reduces cost pressures for tenants, potentially aiding occupancy and rental stability
Ongoing Risks:
Weak eurozone growth means limited demand for office space, which is relevant for the underperforming Sky Complex (currently ~31% occupancy)
Trade war and tariffs could hit tenant sentiment and expansion plans, especially for global tenants in Milan
Currency risk: a stronger euro might pressure LREIT&rsquo s SGD-reported earnings unless hedged effectively
Conclusion:
The ECB' s rate cut and dovish tone are moderately positive for LREIT in the medium term, particularly as lower euro interest rates may help mitigate debt costs on European assets and support valuations. However, unless occupancy improves at Sky Complex, the benefit will be capped.
Lendlease Global Commercial REIT reports portfolio occupancy of 92.1% as at end March
Lendlease Global Commercial REIT (LREIT) has reported a portfolio committed occupancy of 92.1% as at March 31, 2025.
The REIT&rsquo s retail portfolio received a 99.5% occupancy with a positive rental reversion of 10.4% as at March 31. Its office portfolio occupancy stood at 86.6%.
LREIT reported a weighted average lease expiry (WALE) of approximately 7.3 years (by NLA) and 4.9 years (by GRI) respectively.
The REIT&rsquo s gross borrowings as at March 31 came in at $1.5 billion, down from the $1.57 billion reported in the previous quarter.
Gearing ratio stood at 38%, and weighted average debt maturity at 1.8 years.
The REIT&rsquo s fixed rate borrowings came in at 76% as at March 31, and interest coverage ratio (ICR) was 1.5 times.
The REIT issued $120 million perpetual securities at 4.75% per annum for the refinancing of the $200 million 5.25% perpetual securities due in April 2025, with the remaining $80 million to be refinanced with loans.
Net proceeds from the $120 million issuance were utilised to reduce debt borrowings, lowering gearing to 38.0% as at March 31, 2025. In April 2025, debt was drawn to repay the $200 million perpetual securities.
The REIT says that it aims to improve its ICR by active asset management, managing the cost of capital, and asset recycling.
During the quarter, the manager signed a lease agreement with Shaw Theatres as a new tenant. It has commenced refurbishment works to upgrade restroom facilities at Jem, scheduled for completion in 1Q2026.
The REIT completed the rental review exercise for Jem office in February, with a positive uplift of about 13% over the prevailing base rent for five years effective from Dec 3, 2024. Jem' s office is fully leased to Singapore' s Ministry of National Development (MND) until 2044.
As of March 31, 2025, Building 3 in Milan had an occupancy rate of approximately 31%.
The REIT&rsquo s portfolio comprises leasehold properties in Singapore namely Jem (an office and retail property) and 313@somerset (a prime retail property) as well as freehold interest in Sky Complex (three Grade A commercial buildings) in Milan.
Lendlease Global Commercial REIT reports portfolio occupancy of 92.1% as at end March
Lendlease Global Commercial REIT (LREIT) has reported a portfolio committed occupancy of 92.1% as at March 31, 2025.
The REIT&rsquo s retail portfolio received a 99.5% occupancy with a positive rental reversion of 10.4% as at March 31. Its office portfolio occupancy stood at 86.6%.
LREIT reported a weighted average lease expiry (WALE) of approximately 7.3 years (by NLA) and 4.9 years (by GRI) respectively.
The REIT&rsquo s gross borrowings as at March 31 came in at $1.5 billion, down from the $1.57 billion reported in the previous quarter.
Gearing ratio stood at 38%, and weighted average debt maturity at 1.8 years.
The REIT&rsquo s fixed rate borrowings came in at 76% as at March 31, and interest coverage ratio (ICR) was 1.5 times.
The REIT issued $120 million perpetual securities at 4.75% per annum for the refinancing of the $200 million 5.25% perpetual securities due in April 2025, with the remaining $80 million to be refinanced with loans.
Net proceeds from the $120 million issuance were utilised to reduce debt borrowings, lowering gearing to 38.0% as at March 31, 2025. In April 2025, debt was drawn to repay the $200 million perpetual securities.
The REIT says that it aims to improve its ICR by active asset management, managing the cost of capital, and asset recycling.
During the quarter, the manager signed a lease agreement with Shaw Theatres as a new tenant. It has commenced refurbishment works to upgrade restroom facilities at Jem, scheduled for completion in 1Q2026.
The REIT completed the rental review exercise for Jem office in February, with a positive uplift of about 13% over the prevailing base rent for five years effective from Dec 3, 2024. Jem' s office is fully leased to Singapore' s Ministry of National Development (MND) until 2044.
As of March 31, 2025, Building 3 in Milan had an occupancy rate of approximately 31%.
The REIT&rsquo s portfolio comprises leasehold properties in Singapore namely Jem (an office and retail property) and 313@somerset (a prime retail property) as well as freehold interest in Sky Complex (three Grade A commercial buildings) in Milan.
Units in Lendlease closed flat at 51.5 cents on May 7
Lendlease shuts down Cathay Cineplexes at Jem over S$4.3 million rent arrears
[SINGAPORE] Struggling cinema chain Cathay Cineplexes will wind down business operations at its Jem outlet in Jurong East on Thursday (Mar 27).
This follows the closure of its West Mall cinema on Feb 20, the same day its lease at the Bukit Batok shopping complex expired, after news that the cinema owed millions to landlords broke earlier that month.
Closure of the Jem theatre comes as the outlet&rsquo s landlord, Lendlease Global Commercial Real Estate Investment Trust : JYEU +0.98% (Reit), issued a notice to terminate the lease with the embattled cinema chain with effect from Thursday, said mm2 Asia : 1B0 -10%, which operates Cathay.
&ldquo In view of the challenges facing the cinema industry since the onset of Covid-19, Cathay Cineplexes will cease operations in Jem shopping mall effective Mar 27, 2025. This is a result of ongoing negotiations with the landlord for more than a year,&rdquo said mm2 Asia on Thursday.
While the cinema has been &ldquo actively engaging&rdquo its landlord to negotiate and resolve issues related to the continued occupation of the Jem premises and rental arrears, Lendlease Global Commercial Reit has decided to terminate the lease, the mainboard-listed media company said.
It added that Cathay stays committed to post-Covid &ldquo rightsizing&rdquo and realigning of its business, which it has been doing for the past two years.
&ldquo The painful process is inevitable but will allow the cinema to explore new opportunities based on current market demands and ensure long-term sustainability. The chain will also continue to explore innovative ways to enhance the cinema-going experience and diversify its entertainment offerings to meet evolving consumer needs,&rdquo said mm2 Asia.
Lendlease Global Commercial Reit is seeking to recoup some S$4.3 million in rental arrears that Cathay owes, among other things, up to the termination date.
The cinema chain will continue working with its landlord to settle its outstanding debts, mm2 Asia said.
It said: &ldquo Cathay would also like to thank Lendlease for their support over the years throughout the Covid-19 period and post-pandemic, during which the cinema business had seen significant challenges and unprecedented difficulties.&rdquo
The company added that it would make further announcements in the event of any material developments.
It urged shareholders to exercise caution when dealing with its shares and to refrain from taking action potentially &ldquo prejudicial to their interests&rdquo in relation to the shares.
Delayed rental payments
On Jan 28, Cathay received letters of demand from landlords of its two cinema outlets &ndash Century Square and Causeway Point &ndash seeking S$2.7 million in alleged rent, legal costs and other monies owed.
The two outlets are located in the retail malls of Century Square in Tampines and Causeway Point in Woodlands, both of which are owned by Frasers Centrepoint Trust : J69U -0.46%.
The landlord of its Century Square outlet asked for a total of S$479,185.74 in rental arrears and other monies, as well as S$893.80 in legal costs to be paid by Feb 10.
Separately, the landlord of its Causeway Point outlet asked for S$1 million to be paid to its trustee, HSBC Institutional Trust Services, by Feb 3, and for S$1.2 million to be paid by Feb 10. The sum comprises rental arrears and other monies. Cathay was also asked to pay the landlord S$555.90 in legal fees.
When queried by the Singapore Exchange in February on why owed funds had not been paid to the landlords although mm2 Asia reported S$10.1 million in cash and cash equivalents in its first-half financial results for FY2025, the group said it had deployed a portion of the monies for use in its other businesses.
The company added that the S$10.1 million in cash and cash equivalents were not restricted or encumbered in any way, and that the cinema chain was not disputing the payments.
Agree with what you said.
It' s good news for Lendlease reit.
Stopping the bleeding asap is a way of survival.
HVRRVH ( Date: 27-Mar-2025 13:46) Posted:
Maybe but this may not be the cause, since the rentals should be in arrears for sometime already and has not been part of the sources for the DPU. This is good lah, free up space for new tenants with more viable businesses. Nowadays people seldom go cinemas.
who knows this is a buy on news for selling down since there is a clarity
eddyeddy ( Date: 27-Mar-2025 14:04) Posted:
Will be vacant for sometimes , must give 3 months free rentals to new tenants for renovations , spa e on higher floors not easy to attract tenants . Maybe hair salons , massages parlour , foot reflexology...
HVRRVH ( Date: 27-Mar-2025 13:46) Posted:
Maybe but this may not be the cause, since the rentals should be in arrears for sometime already and has not been part of the sources for the DPU. This is good lah, free up space for new tenants with more viable businesses. Nowadays people seldom go cinemas.
Will be vacant for sometimes , must give 3 months free rentals to new tenants for renovations , spa e on higher floors not easy to attract tenants . Maybe hair salons , massages parlour , foot reflexology...
HVRRVH ( Date: 27-Mar-2025 13:46) Posted:
Maybe but this may not be the cause, since the rentals should be in arrears for sometime already and has not been part of the sources for the DPU. This is good lah, free up space for new tenants with more viable businesses. Nowadays people seldom go cinemas.
Maybe but this may not be the cause, since the rentals should be in arrears for sometime already and has not been part of the sources for the DPU. This is good lah, free up space for new tenants with more viable businesses. Nowadays people seldom go cinemas.
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