Lendlease REIT Shows Strong Q1 Sales Growth
News related to:Lendlease Global Commercial REIT · 2 min read
Lendlease Global Commercial REIT (the "Manager"), the manager of Lendlease Global Commercial Trust Management Pte. Ltd., announced its first quarter business updates for FY2027. The company achieved a retail rental reversion of 10.0% for 1Q FY2027, maintaining a portfolio committed occupancy of 98.2%, which was slightly below the 98.5% reported in the previous quarter. This slight dip was attributed to temporary vacancies due to ongoing space reconfiguration works at PLQ Mall.
The portfolio's weighted average lease expiry (WALE) remained healthy at 4.4 years by net lettable area (NLA) and 3.4 years by gross rental income (GRI), underpinned by a well-spread lease expiry profile with only 4.8% of NLA and 7.7% by GRI due for renewal in FY2027.
Tenant sales grew 45.5% year-on-year in 1Q FY2027, with like-for-like tenant sales increasing by 8.1% YoY. The growth was mainly driven by the inclusion of PLQ Mall for the full quarter, which contributed significantly to the overall performance. Excluding PLQ Mall, like-for-like visitation and tenant sales increased by 6.7% and 8.1% YoY, respectively.
The Manager highlighted that the reconfiguration of approximately 16,000 square feet of space at PLQ Mall was on track for completion by the end of 2026. The new tenants expected to be welcomed into the mall would enhance its positioning and support income growth.
In terms of capital management, the weighted average cost of debt for Lendlease REIT dropped to 2.50% per annum, down from 2.75% per annum for FY2026. Approximately 68% of Lendlease REIT's borrowings were hedged to fixed rates, contributing to a healthy interest coverage ratio (ICR) of 2.1 times, which is expected to improve further as the benefits of the June 2026 perpetual securities refinancing set in over time.
Lendlease REIT retained its title as the Regional Sector Leader (Asia Retail Listed) in the GRESB 2026 Assessment for the seventh consecutive year, with a score of 96.6, well above the GRESB average of 80.9. The company was also recognized as the Global Sector Leader (Retail Listed), underscoring its sustainability leadership on a global scale.
The Manager, Guy Cawthra, Chief Executive Officer of the Manager, expressed optimism about the company's strong start to FY2027, attributing this to the portfolio's resilience and the continued execution of capital management initiatives. The company looks forward to building on this momentum in the quarters ahead, supported by the full-period contribution from PLQ Mall and the positive rental reversions secured over the past year.
Lendlease Global Commercial REIT, listed on October 2, 2019, is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes. As at June 30, 2026, its portfolio comprises leasehold properties in Singapore, including Jem (retail), 313@somerset (a prime retail property), PLQ Mall (a suburban retail property), and freehold interest in three Grade A commercial buildings in Milan. These properties have a total value of approximately S$4.2 billion. Other investments include a stake in Parkway Parade (an office and retail property) and the development of Grange House (a multifunctional event space) adjacent to 313@somerset.
Lendlease REIT is managed by Lendlease Global Commercial Trust Management Pte. Ltd., an indirect wholly-owned subsidiary of Lendlease Corporation Limited.