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Lendlease Global Commercial REIT outperforms forecasts with DPU of 1.29 cents

/ EdgeProp Singapore |

February 11, 2020 3:54 PM SGT

SINGAPORE (EDGEPROP) - In its inaugural unaudited financial results for the reporting period since its listing in October last year to Dec 31, Lendlease Global Commercial REIT (LREIT) outperformed its IPO forecast with a DPU of 1.29 cents, which is 3.1% higher than the forecast DPU of 1.25 cents, announced the manager, Lendlease Global Commercial Trust Management.

Distributable income to unitholders of $15 million is 2.4% higher than the forecast, and was attributed to higher net property income and lower finance costs. “We are pleased to present a strong performance for our inaugural financial results,” says Kelvin Chow, CEO of the manager, adding that “[LREIT’s] well-positioned properties in both Singapore and Milan continue to provide stable and growing rental income streams to the REIT”.

313@somerset registered positive rental reversion of 0.5% for the period Oct 2 to Dec 31, 2019. The site’s plot ratio has been revised from 4.9+ to 5.6 under the 2019 Master Plan, which means in a potential increase of up to 10,850 sq ft of gross floor area. The manger is studying opportunities to deploy the additional floor space to improve the retail offering.

313@somerset is LREIT's retail property in Singapore. (Picture: Lendlease Global Commercial Trust Management)

Singapore’s retail market outlook is encouraging given limited new supply over the next two to three years, and the tightening vacancy environment will support modest rental growth, the manager says. The open-air carpark on Grange Road beside 313@somerset could also be transformed into a dedicated event space as part of government rejuvenation plans along Orchard Road.

In Milian, LREIT’s Sky Complex is fully occupied and operates on a triple-net lease structure. With a long-lease term until 2032 and annual rental escalation based on 75% of ISTAT consumer price index variation, Sky Complex is projected to provide stable income stream to the portfolio, says the manager.

LREIT’s Sky Complex is fully occupied and is projected to provide stable income stream to the portfolio. (Picture: Lendlease Global Commercial Trust Management)

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