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Just back from holiday.
The reason is that Traders are 90%+ certain the Fed will cut rates by Sept after Fed meeting.
Rate cutting is most important to Lendlease reit.
The reason is that Traders are 90%+ certain the Fed will cut rates by Sept after Fed meeting.
Rate cutting is most important to Lendlease reit.
Alignment ( Date: 20-Jul-2024 03:11) Posted:
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Can you explain this point? What is REIT week and why is it important?
Mark001 ( Date: 16-Jul-2024 08:51) Posted:
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The direction is clear.
Lendlease Global Reit remains focused on the Singapore market stays prudent on expansions
It will definitely fly if it stands in the wind.
My opinion only.
Lendlease Global Reit remains focused on the Singapore market stays prudent on expansions
It will definitely fly if it stands in the wind.
My opinion only.
Mark001 ( Date: 16-Jul-2024 08:51) Posted:
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The most important point is that this week is REIT week. It' s that simple.
chubbybastard ( Date: 15-Jul-2024 14:13) Posted:
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That' s why I say I agree with you that they should look at their debt profile first. But I guess they already have plans in place to refi bulk of their lendings once rates are cut. So let' s give them a benefit of a doubt
Alignment ( Date: 15-Jul-2024 14:05) Posted:
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If that is what they are thinking then they are potentially too optimistic.
They are one of the most geared REITs on SGX on top of which they have prefs and these prefs are almongst the first to step up in their interest rates.
They are one of the most geared REITs on SGX on top of which they have prefs and these prefs are almongst the first to step up in their interest rates.
chubbybastard ( Date: 15-Jul-2024 14:01) Posted:
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Agreed but I think management' s thought is that lending rates will be cut in late 2024/2025 and that would take care of itself.
So they rather focus on acquisition
So they rather focus on acquisition
Alignment ( Date: 15-Jul-2024 13:53) Posted:
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Management is trying to fly before it can walk. It should focus on managing its debt before thinking of new acquisitions.
Furthermore the idea of buying in the UK or Australia does not seem prudent, Where are the synergies?
Furthermore the idea of buying in the UK or Australia does not seem prudent, Where are the synergies?
Joelton ( Date: 15-Jul-2024 12:06) Posted:
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Lendlease Global Reit remains focused on the Singapore market stays prudent on expansions
The eastern part of is island is an area it would like to focus on, says its manager&rsquo s CEO
LENDLEASE Global Commercial Reit : JYEU +5.22%&rsquo s (LReit) expansion focus has been largely on the Singapore market in recent years, although the Reit is still on the lookout for opportunities in overseas markets, the real estate investment trust&rsquo s (Reit) manager told The Business Times.
Since its initial public offering on the mainboard in October 2019, the Reit has acquired Jem &ndash a mixed-use development in Jurong East &ndash a 10 per cent stake in Parkway Parade shopping mall, and a multifunctional event space at Grange Road.
The other properties in its portfolio include 313 @ Somerset retail mall along Orchard Road, and three Grade A office buildings at Sky Complex in Milan, Italy.
Kelvin Chow, CEO of Lendlease Global Commercial Trust Management, told BT that for the Singapore market, the focus remains on office and retail assets.
He related the experience of acquiring Jem in 2022, where the Reit managed to achieve the &ldquo full support&rdquo of unitholders for the purchase.
That acquisition, which raised approximately S$1.7 billion, garnered 99 per cent support from institutional and retail investors at its extraordinary general meeting.
Post-acquisition, LReit&rsquo s assets under management grew approximately 2.6 times to S$3.65 billion, while its equity market capitalisation increased about two times to S$1.4 billion.
Chow attributed the strong support from unitholders to the reason that they can &ldquo touch and feel, and can go there and examine the asset for themselves&rdquo .
The Reit&rsquo s sponsor is Lendlease Corporation, an international property and infrastructure group headquartered in Australia.
Strong pipeline
The sponsor has several properties under its portfolio in Singapore which could be injected into LReit eventually &ndash Paya Lebar Quarter, Paya Lebar Green, and the remaining stakes in Parkway Parade.
The company is also involved in the construction, development management and project management of projects such as the Shaw Tower and Singtel Comcentre, which could open up new opportunities for the Reit to take over in sale and leaseback arrangements.
When asked if any of these developments are in the pipeline, Chow said: &ldquo Of course, as soon as the numbers stack up. But I do tell some of our investors that based on our current trading price, it does not make sense for us to do any acquisitions.&rdquo
&ldquo We have an internal number that the trading price has to achieve, for us to make the acquisitions,&rdquo he explained.
&ldquo We are not pressured to acquire, unlike some other Reits (which) continue to make acquisitions even when the market condition is not favourable. We are very disciplined.&rdquo
The eastern part of Singapore is an area that LReit would like to focus on, he added. &ldquo Parkway Parade is something that we already have one foot in, for example.&rdquo
Acquisitions and divestments, focusing on Singapore
There is market talk that LReit may divest some of its assets.
In May, BT reported that the Reit was looking to sell the office component of its Jem asset. The 12-storey tower has 311,217 square feet of net lettable area and is fully leased to the Ministry of National Development under a 30-year lease that runs until 2044.
&ldquo We are constantly looking at our acquisition and divestment plan. We do have some plans to rejuvenate our portfolio and (are looking for) the right time to diversify,&rdquo Chow said.
Its sponsor also recently announced a change of strategy to exit its overseas construction operations. For LReit, this has no significant impact given that Singapore remains its primary focus.
Investors and brokerage analysts have noted the relatively high gearing of the Reit, which is 41 per cent.
&ldquo The gearing is high compared to the whole industry because for other Reits, they are focusing on different assets, their size of acquisition is small. But for a commercial asset like Jem, which we acquired, that size is big,&rdquo Chow said.
&ldquo We are just waiting for the right time to do either divestment or acquisitions to reset the gearing levels so that it gets to a more comfortable level.&rdquo
He added: &ldquo We want to continue to focus on Singapore because we want to build that (kind of) confidence and (comfort among) the unitholders before we seriously think of moving out of Singapore to advance further.&rdquo
Chow is aware that the Reit has not made that many property acquisitions compared to its peers in the market.
&ldquo I think the main reason is... the macro-environment conditions. At this moment, we look at the interest rate &ndash it remains at a record high. Sooner or later, you will see that going down, but at this peak, there are a lot of challenges to enter the market and get the right asset,&rdquo he said, also citing buy-ins from unitholders to support acquisitions.
Looking overseas
With only one overseas asset under its portfolio, LReit remains interested in expanding beyond Singapore.
Chow said that LReit remains interested in Australia and the UK. Italy, where Lendlease has a presence, is also of interest.
&ldquo Overseas assets are still within our radar&hellip (looking at) currency risks, interest rate risk, potential for growth, economies of scale, whether we have people managing the overseas assets for us, whether we are familiar with the market, and so on. At this moment, I don&rsquo t see any kind of sizeable growth (asset) that we can look into,&rdquo he said.
Boosting asset performance
LReit will continue to focus on enhancing the asset performance, said Chow.
Beyond asset performance, he said the manager also has to look at capital management, managing interest rates and its position. &ldquo We just need to be patient, because we do see that it is slowly moving in our favour.&rdquo
As at Mar 31, 2024, LReit&rsquo s committed portfolio occupancy was at 88.8 per cent, and continues to maintain a long portfolio weighted average lease expiry of 7.8 years by net lettable area and 4.8 years by gross rental income.
Its retail portfolio occupancy hit 99.4 per cent, with positive rental reversion of 15.3 per cent. The Reit has also maintained a healthy retail tenant retention rate of 86.2 per cent.
It also noted that tenant sales were up 2.6 per cent year on year to S$207.9 million in Q3 FY2024, while visitation increased 6.1 per cent from 15.4 million in the year-earlier period to 16.4 million.
Lendlease Global Reit&rsquo s committed portfolio occupancy rises to 88.8% in Q3
As at Mar 31, the Reit&rsquo s retail portfolio occupancy was 99.4%, with positive rental reversion of 15.3%
LENDLEASE Global Commercial Reit : JYEU +2.8% (LReit) on Monday (May 6) reported a committed portfolio occupancy of 88.8 per cent for the third quarter ended Mar 31, 2024, up from 87.9 per cent from the previous quarter.
The real estate investment trust (Reit) continues to maintain a long portfolio weighted average lease expiry of 7.8 years by net lettable area (NLA) and 4.8 years by gross rental income (GRI), respectively, for Q3.
In a Q3 business update to the Singapore Exchange, the Reit manager said this is mainly attributed to the positive leasing momentum for Sky Complex (Building 3), where approximately 8.1 per cent of the NLA was committed at market rents within three months post lease restructuring of the complex.
Sky Complex is a group of three Grade A office buildings located at Santa Giulia Business District in Milan.
The manager added that office tenants account for approximately 22 per cent of the portfolio GRI.
&ldquo With a long office weighted average lease expiry of 12.6 years by NLA and 15.1 years by GRI, it will provide stable revenue for LReit&rsquo s unitholders,&rdquo said the manager.
As at Mar 31, 2024, the Reit&rsquo s retail portfolio occupancy was 99.4 per cent, with positive rental reversion of 15.3 per cent. It has also maintained a healthy retail tenant retention rate of 86.2 per cent.
It further noted that tenant sales were up 2.6 per cent year on year to S$207.9 million in Q3 FY2024, while visitation increased 6.1 per cent from 15.4 million in the year-ago period to 16.4 million this quarter.
In Q3, gross borrowings were S$1.57 billion with a gearing ratio of 41 per cent. The weighted average debt maturity was 2.8 years with a weighted average cost of debt of 3.5 per cent per annum.
Interest coverage ratio of LReit was 3.4 times, which provides ample buffer from its debt covenants of two times, said the manager.
Kelvin Chow, chief executive of the manager, said: &ldquo The leasing progress at Building 3 of Sky Complex is an encouraging step towards our strategic repositioning to secure multi-tenancy at market rents.
&ldquo Moving forward, we will continue to remain focused on prudent capital management to manage cost and gearing.&rdquo
Avoid ' Global' reits for now.
Esp. if they are highly geared
Esp. if they are highly geared
Had dinner at JEM over the weekend. The footfall was amazing and both retail and food businesses appear bustling. This stock would certainly be trending higher if not for the overhang of its underperforming foreign asset. Still an unpolished gem at this moment. But whether its potential can be properly extracted for the benefit of shareholders is really a question for the reit manager.
It' s 56.9 cents. Notice of option would be sent out on 23.2.24. I will opt for half half.
Goldfinger ( Date: 23-Feb-2024 23:50) Posted:
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Have the announced the Dividend Reinvestment Plan price for the LL Reit dividend yet? They had the announcement, but could not seem to find the DRIP price. Thanks.
I will subscribe to the DRP if I think I can subsequently sell those shares at a decent profit. So there' s definitely a price I would buy at.
It may drop further to test previous resistance at 55. To err on the side of the caution, personally I would not subscribe to DRIP, regardless of the DRIP price. Chances are, it would still price at slightly above 60 cents. Risky.
HVRRVH ( Date: 02-Feb-2024 10:46) Posted:
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I guess it depends what your expectations were. 2H23 DPU implies a 6.7% yield off the current share price, and where the operating metrics were much better than 1H23. Only reason for the HY on HY decline is the interest cost, which hopefully has peaked.
Only drop 1 cent. Market is kind enough. It is expected that after XD, it should drop below 60 cents.
Lendlease Global Commercial Reit H1 DPU down 14.5% to S$0.021
LENDLEASE Global Commercial Real Estate Investment Trust&rsquo s (Lendlease Reit) distribution per unit (DPU) fell 14.5 per cent to S$0.021 for its first half ended Dec 31, 2023, from S$0.0245 the year before.
The lower DPU was primarily driven by higher borrowing costs amid the higher interest rates as compared to a year ago.
This was even as gross revenue was up 17.9 per cent on the year to S$119.9 million for the half-year period, from S$101.7 million in the year-ago period.
This was mainly due to improved operational performance from the Reit&rsquo s retail malls and recognition of supplementary rent from the lease structure with Sky Italia, said the Reit&rsquo s manager in a bourse filing on Thursday (Feb 1).
Net property income climbed 22.2 per cent year on year (yoy) to S$93.4 million, from S$76.4 million.
Distributable income declined 12 per cent yoy to S$49.3 million, from S$56 million previously.
The distribution will be paid out on Mar 27, after books closure on Feb 9.
Property operating expenses rose 4.8 per cent on the year to S$26.5 million, from S$25.3 million previously, while finance costs grew 38.7 per cent yoy to S$32.7 million, from S$23.6 million before.
The higher finance costs were mainly due to higher-than-average interest rates, due to the current higher interest rate environment, said the manager.
Committed occupancy rate at Lendlease Reit&rsquo s retail portfolio stood at 99.6 per cent as at Dec 31, 2023, with a positive rental reversion of about 15.7 per cent for the period.
Its office portfolio was underpinned by a long weighted average lease expiry of 12.8 years by net lettable area and 15.3 years by gross rental income.
Kelvin Chow, the manager&rsquo s chief executive officer, said the lease restructuring exercise with Sky Italia was a &ldquo pertinent move&rdquo given the work-from-home trend in Europe.
The manager had restructured the lease with Sky Italia in December to reduce Lendlease Reit&rsquo s single-tenant exposure to the broadcasting sector and reposition Building 3 to secure multi-tenancies in market rents.
&ldquo This exercise allows us to mitigate the pre-termination risk and enables us to continue maintaining cashflow stability for our unitholders,&rdquo he said.
&ldquo Moving forward, we remain focused on active capital management to manage cost and gearing,&rdquo said Chow. Meanwhile, amid the high interest rate environment, the Reit will &ldquo stay flexible and adaptive while monitoring the market for potential additional hedging as appropriate&rdquo .
Indeed. The DPU reduction is expected and indeed, DRIP to save cash. A drop of 14.3% in DPU YoY was not mentioned in the head line of the press release. High gearing of 40%, positive rental reversion and higher revenue and property income did not translate to higher DPU. High cost of borrowing to be continue till at least 2025. No impetus for appreciation in unit price till at least beginning of 2026 if by then the interest rate drop substantially to around 3%. No cost saving too for 2024 and 2025 if interest rate drop because high cost of interest rate already lock in till 2025 as per announcement in the result press release. Of course, they didn' t put it the way I put it, rather, the line they used was ' No refinance needed till 2025' .
HVRRVH ( Date: 30-Jan-2024 10:38) Posted:
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