Lendlease Global Commercial REIT misses DPU forecast by 19.7%

0

Data from Lendlease Global Commercial REIT’s latest results have been updated into the Singapore REITs table.

Lendlease Global Commercial REIT (LREIT) has reported distribution per unit (DPU) of 3.05 Singapore cents for the period spanning 2 October 2019 to 30 June 2020.

This was 19.7% lower compared to the original IPO forecast, mainly due to rent waivers given to the REIT’s retail tenants.

Gross revenue for FY2020 was at SGD55.5 million (USD40 million), 13.1% lower than forecast.

This was on the back of a lower rental income from 313@somerset due to the implementation of relief measures under the COVID-19 (Temporary Measures) Act 2020, and the rent waivers provided to retail tenants.

The impact was cushioned by the stable revenue contributed by Sky Complex, said the REIT.

The REIT had a gearing ratio of 35.1%, with weighted average running cost of debt at 0.86% per annum.

As at 30 June 2020, the portfolio occupancy stood at 99.5% with a WALE of 9.7 years by net lettable area and 4.9 years by gross rental income.

More than 95% of 313@somerset has resumed operations since the announcement by the Singapore government on Phase 2 of safe transition in June, said the REIT.

Footfall has recovered approximately 40% of pre-COVID-19 level, it added.

As at 30 June 2020, 313@somerset had a high tenant retention rate of approximately 87%.

Meanwhile, Sky Complex, LREIT’s office asset in Milan, is projected to provide a stable income stream to the portfolio given the long lease term until 2032 to Sky Italia.

The triple net structured lease is secured with an annual built-in rental escalation pegged to 75% of ISTAT consumer price index variance.

The REIT was last done on the Singapore Exchange at SGD0.64, down 1.5% from its previous close.

Share.

Comments are closed.