Lendlease Global Reit’s committed portfolio occupancy dips to 94.4% amid PLQ Mall works
[SINGAPORE] Mainboard-listed Lendlease Global Commercial Reit on Friday (Oct 30) posted a slight dip in its committed portfolio occupancy at 94.4 per cent for the first quarter ended Sep 30, down from 94.6 per cent the previous quarter.
This was mainly due to temporary vacancies from ongoing space reconfiguration works at PLQ Mall, said the Reit’s manager in an evening business update released on the local bourse.
Its retail portfolio occupancy eased some 0.3 per cent to 98.2 per cent in the first quarter, while its office portfolio occupancy remained unchanged at 89.1 per cent.
The reconfiguration of some 16,000 sq ft of space at PLQ Mall is said to remain on track for completion by end-2026.
The Reit’s retail portfolio had a positive rental reversion of 10 per cent for the quarter, added the manager.
Visits grew 27.4 per cent while tenant sales rose 45.5 per cent year on year, mainly driven by PLQ Mall’s inclusion for the full quarter. Excluding the mall, like-for-like visits was up 6.7 per cent while tenant sales increased 8.1 per cent year on year.
The manager added that the portfolio’s weighted average lease expiry remained healthy at 4.4 years by net lettable area and 3.4 years by gross rental income, underpinned by what it described as a well-spread lease expiry profile.
Only 4.8 per cent of the net lettable area and 7.7 per cent of the gross rental income are due for renewal in FY2027, it explained.
Capital management
The Reit’s gross borrowings amounted to S$1.7 billion as at Sep 30, with gearing lowered to 38.7 per cent from 38.9 per cent as at Jun 30.
Its weighted average cost of debt improved to 2.5 per cent per annum, from 2.75 per cent per annum reported earlier for FY2026. This was attributed chiefly to the loans associated with PLQ Mall that were refinanced at a lower cost of borrowing, said the manager.
As at Sep 30, about 68 per cent of the Reit’s borrowings are said to be hedged to fixed rates.
Its interest coverage ratio remained healthy at 2.1 times, with the benefits of the lower blended cost of funding from June’s perpetual securities refinancing set to accrue progressively over time, added the manager.
Other key opportunities in FY2027 include savings from lower contracted electricity tariffs and positive rental reversions contracted in FY2026, it said.
Lendlease Reit units ended Friday flat at S$0.545 before the announcement.
