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lendlease reduced the stake in the JYEU portfolio
Lendlease Reit is on the good trend.
Married deal early in the morning what a magic number volume 1,234,0000
My view:
Once the surrounding developments around Jem and 313 are completed, rental revenue is expected to increase. In addition, there should be more income opportunities from other business segments.
Once the surrounding developments around Jem and 313 are completed, rental revenue is expected to increase. In addition, there should be more income opportunities from other business segments.
Mark001 ( Date: 13-Aug-2025 15:46) Posted:
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It should go back to 0.7 series by end of this yr.
My own view.
My own view.
BullRun ( Date: 13-Aug-2025 15:35) Posted:
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Volume picking up... guess many start to see value in their gem assets!
dontbetray ( Date: 11-Aug-2025 15:45) Posted:
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must also depend realistically if there are interested party in the first place
seem to be too rosy to be true
seem to be too rosy to be true
BullRun ( Date: 11-Aug-2025 14:25) Posted:
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JEM and 313 are gem assets. A lot of develpment ongoing near to these two malls, guess rental will continue tp move up very strongly.
Lendlease Global Commercial REIT (LREIT)
💬 CGS View:
-
Maintains Add, target S$0.67 -
Positive on rental reversions and ESG strength -
Accepts short-term DPU hit from Jem office divestment, but sees long-term balance sheet gain
🤔 Do I agree?
This one is more borderline:
✅ What makes sense:
-
The sale of the Jem office block improves gearing materially (~42.6% &rarr 35%), which is key in a high-interest rate environment. -
High occupancy and strong rental reversions (+10% YoY) suggest stable underlying retail demand. -
ESG credibility is very real &mdash 5-star GRESB rating, early net-zero achievement, and sustainability-linked loans improve risk profile.
⚠ ️ What&rsquo s concerning:
-
DPU shortfall in FY25 is significant (45% miss for 2H). That&rsquo s not a rounding error. -
The loss of recurring income from Jem&rsquo s office segment means LREIT now relies more heavily on its retail assets &mdash less diversification. -
The revised target price implies a ~16.5% upside, but that may be generous unless new growth drivers emerge soon.
Conclusion: The thesis is credible, especially for long-term ESG-focused investors. But the near-term distribution weakness and income loss from the divestment deserve more weight. Might be better rated as &ldquo Hold&rdquo rather than &ldquo Add.&rdquo
Here&rsquo s a clear summary of the CGS International research note on Lendlease Global Commercial REIT (LREIT), dated 7 August 2025:
Summary Overview
Rating & Target
-
Rating: Add (equivalent to &ldquo Buy&rdquo ) &mdash expected total return of over 10% over the next 12 months. -
New Target Price: S$0.67, down slightly from S$0.69, representing approximately 16.5% upside from its current price of S$0.575 RFS.
2H FY25 Highlights
-
2H distributable income (DPU) came in at 1.8 Scts, totaling 3.6 Scts for FY25, falling short of expectations at just 45.6% (2H) and 91.1% (full year) of forecast RFS. -
Retail rental reversions remained strong at +10.2%, while occupancy stayed high (Jem: 99.8%, 313 @ Somerset: 98.8%) RFS.
Divestment & Financial Impact
-
LREIT announced the proposed sale of the Jem office block for S$462 million on 4 August 2025.-
Post-sale, gearing is projected to fall from 42.6% to 35%. -
DPU is expected to dip by around 2.2% due to loss of income, but there&rsquo s a potential divestment gain of S$8.9 million that could be distributed to unitholders RFS.
-
Valuation & Dividend Outlook
-
FY26&ndash 27 DPU estimates have been lowered by 6.95%&ndash 8.64% to reflect the income gap from the divestment and lease restructuring RFS. -
The forward Yields remain attractive: FY26 projected dividend yield of 6.3%, rising to 6.5% in FY27 RFS.
ESG Strength & Sustainability Edge
-
LREIT earned a 5-star GRESB rating, serving as Global Sector Leader in Retail, and Asia Retail Leader for the fourth consecutive year RFS. -
Certifications include BCA Green Mark Platinum and LEED Gold, with successful early achievement of net-zero Scope 1 & 2 emissions in 2022 (target was 2025), and deeper reductions slated under Mission Zero by 2040 RFS. -
Approximately 85% of its committed debt is in sustainability-linked loans, emphasizing its ESG-aligned financing strategy RFS.
Key Takeaways
-
Positive Outlook: Maintained " Add" rating with modest downside to target price. -
Capital Recycling: Office divestment bolsters balance sheet and flexibility, offset somewhat by lower DPU. -
Growth Potential: Strong rental reversions and high occupancy support resilience. -
ESG Leadership: Robust sustainable credentials and financing enhance investor appeal.
Indeed,it is LL' s turn to rise.
- Divest offices of JEM to reduce leverage rate.
- A higher dividend in Sep.
- Fed' s Rate cut probably be in Sep.
- Divest offices of JEM to reduce leverage rate.
- A higher dividend in Sep.
- Fed' s Rate cut probably be in Sep.
In 2022 - bought JEM for 2B.
Office space - 311,217 sq ft net lettable area (NLA), out of the total NLA of 893,044 sq ft (around 35%). Cap rate 3.5%
Retail space - 65% cap rate 4.5%, source: News Release.ashx
Based on their weighted cap rates, the value of the office space should at least be 590M (at purchase). Now sell at a huge loss 462M still dare to trumpet. What kind of imbecile sells a SG asset at a loss!?!? This is Singapore FFS. Clearly, it is because Keppel see you FIRE sale then kena low ball to hell.
Only the Sponsor laughing cause stupid REIT investors took JEM off its hands for 2B, and the Manager making millions in acquisition/divestment fees.
This is a damn effed up REIT.
Office space - 311,217 sq ft net lettable area (NLA), out of the total NLA of 893,044 sq ft (around 35%). Cap rate 3.5%
Retail space - 65% cap rate 4.5%, source: News Release.ashx
Based on their weighted cap rates, the value of the office space should at least be 590M (at purchase). Now sell at a huge loss 462M still dare to trumpet. What kind of imbecile sells a SG asset at a loss!?!? This is Singapore FFS. Clearly, it is because Keppel see you FIRE sale then kena low ball to hell.
Only the Sponsor laughing cause stupid REIT investors took JEM off its hands for 2B, and the Manager making millions in acquisition/divestment fees.
This is a damn effed up REIT.
Lendlease Global Commercial Reit posts 1.8% higher DPU of S$0.018 for H2 FY2025
This is due to improved performance of its Singapore properties and lower finance costs, says manager
[SINGAPORE] Lendlease Global Commercial Real Estate Investment Trust (Reit) : JYEU +2.73%posted a marginal improvement of 1.8 per cent in its distribution per unit (DPU) to S$0.018 for the half-year ended Jun 30.
The higher DPU &ndash to be paid out on Sep 24 &ndash 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.
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 to divest office component of Jem to Keppel for S$462 million
Net proceeds from the divestment will be used to predominantly repay certain loans
[SINGAPORE] Lendlease Global Commercial Reit : JYEU +2.73% : JYEU +2.73%will be divesting the office component of the Juong commercial-retail development Jem to Keppel : BN4 +0.48% for S$462 million, with the proceeds to be used to pay down debts and potentially for distribution to unitholders.
In a regulatory statement published on Monday (Aug 4), the manager of the real estate investment trust (Reit) announced that the trustee entered into a put and call option agreement with the purchaser on Monday.
Currently, the 12-level office space &ndash which the Reit acquired in 2022 &ndash is leased to the Ministry of National Development for 30 years from December 2014.
Net proceeds from the divestment will be used to predominantly repay certain loans, and this is expected to reduce the Reit&rsquo s aggregate leverage ratio to approximately 35 per cent on a pro forma basis from 42.6 per cent as at June 2025.
The divestment could result in a net cash gain of approximately S$8.9 million, which will be available for distribution to unitholders.
The manager said that key benefits of the divestment include improving the Reit&rsquo s financial position, unlocking value of the office component, and increasing the Reit&rsquo s focus on retail to over 85 per cent of its portfolio by valuation
Had the divestment been completed on Jul 1, 2024, the pro forma distribution per unit (DPU) would have been S$0.0352 Singapore cents, 2.2 per cent lower than S$0.036 cents before the sale. Had the divestment been completed in end-June, 2025, the net asset value per unit would have been S$0.74, marginally lower than S$0.75 before the sale.
Keppel : BN4 +0.48% said in a media statement that private funds under its sustainable urban renewal strategy are acquiring the office component of Jem, and the asset manager and operator will explore upgrading works to reduce the energy use intensity.
Keppel&rsquo s earnings per share and net tangible assets per share for the current year are not expected to be materially impacted by the acquisition, it said.
Very glad i sold at 70.
Many analysts were going gaga over this reit in the past.
Many analysts were going gaga over this reit in the past.
spore1 ( Date: 04-Aug-2025 22:42) Posted:
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Small reit counter and mgmt from ex. Keppel. Seem cmi.
HVRRVH ( Date: 04-Aug-2025 22:37) Posted:
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Past communications keep boasting JEM office has long term rental secured with MND bao jia with rental reversion but now quickly sell. Gearing too high lah no choice and want to save money keep issuing scrip dividends. Not long ago buy JEM now sell JEM and manager keep pocketing acquistion and divestment fees, win liao. ONLY thing good is now gearing drop to 35% quick shout from the top of the mountain. However, be cautious, if sponsor throw Parkway Parade into this reit then personally that will be the last straw on camel back and I will bail.
This lousy reit unfortunately that I have a small position is reporting results after market closed. I think despite revenue up and NPI up, the dpu will drop and the explanation will go along the lines of ' ... higher financial cost... enlarged sharebase... lower DPU..' . Let' s see.
clear picture of Lendlease Group (ASX:LLC) over the last five years, highlighting a 49% total shareholder return (TSR) loss, driven largely by declining revenue and continued unprofitability.
Here' s a deeper breakdown of the key points and what they mean for investors:
🔻 Performance Highlights (5-Year Overview)
-
Share price drop: ~54% -
Total Shareholder Return (TSR): -49% (includes dividends) -
Annual share price decline (CAGR): ~9% -
Revenue decline: ~5.9% per year -
Profitability: Not profitable in the past 12 months
📉 What This Implies
-
Negative revenue trend + no profitability = weak fundamental case -
The TSR being slightly better than the share price alone implies dividends softened the blow, but not by much. -
Insider buying is a modest positive, as it can indicate management&rsquo s belief in long-term value, though it shouldn' t be a sole buying signal.
🧮 Valuation & Investor Outlook
-
Valuation risk: The stock&rsquo s declining revenue and negative earnings complicate traditional valuation metrics like P/E or PEG ratios. -
Market underperformance: While the ASX has gained ~12% over the past year, Lendlease lost ~5.9%&mdash a clear underperformance. -
Turnaround potential: Until there&rsquo s a clear catalyst for growth (like a strong rebound in property development revenue or successful project completions), upside remains speculative.
⚠ ️ Risks & Red Flags
-
Two warning signs mentioned (details not included but likely relate to profitability and revenue decline). -
Long-term trends are against the company, and the broader property development sector faces macroeconomic pressures (interest rates, construction costs, regulatory hurdles).
✅ What Might Turn Things Around
-
Resumption of profitability -
New large-scale projects or partnerships -
Restructuring efforts or strategic asset sales -
Improved macro environment (e.g. interest rate cuts, government infrastructure spending)
📌 Bottom Line
Lendlease&rsquo s long-term underperformance isn&rsquo t just due to bad luck &mdash it' s tied to fundamental declines in its business performance. While there is some insider confidence, that alone isn' t enough to justify an investment without a credible turnaround plan or signs of revenue growth.
For now, investors may be better off watching from the sidelines unless they' re specifically targeting turnaround plays with a high risk tolerance
Pundit identify this will be potential to go privatisatised. Their orchard is undervalue since inflation happened
Alignment ( Date: 27-Jul-2025 00:45) Posted:
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