Well-Positioned for Resilient Growth
Key Highlights
- Divestment of Jem office is expected to complete by 12 November 2025. Upon completion, approximately S$8.9 million1 gain on disposal will be available for distribution to Unitholders.
- Retail portfolio achieved positive rental reversion of 8.9%2.
- Portfolio occupancy improved to 95.0%3,4 driven by active leasing efforts at Building 3 in Milan.
- Weighted average cost of debt improved to 3.09% p.a. (vs. 3.46% p.a as at 30 June 2025).
- Inclusion in iEdge Singapore Next 50 Index enhances global visibility and investor recognition.
- Awarded the Regional Sector Leader (Retail Asia Listed) in GRESB 2025 assessment and maintained 5 Star rating.
SINGAPORE, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Lendlease Global Commercial Trust Management Pte. Ltd. (the “Manager”), the manager of Lendlease Global Commercial REIT (“Lendlease REIT”), announces its first quarter business updates for FY2026.
Jem office divestment nears completion
The condition precedent for the divestment of Jem office has been fulfilled, and the transaction is expected to complete by 12 November 2025. Upon completion, the net sales proceeds will be predominately used to repay borrowings, lowering aggregate leverage to approximately 35% on a proforma basis, and terminate associated hedges. A disposal gain of approximately S$8.9 million1 will also be available for distribution to Unitholders.
Operational Performance
As of 30 September 2025, Lendlease REIT’s portfolio committed occupancy improved to 95.0%3,4. Its retail portfolio continued to demonstrate strength with an occupancy rate exceeding 99%. Occupancy at the Milan office portfolio increased to 88.5%4 from 81.6% in June 2025, supported by active leasing efforts at Building 3.
The lease expiry profile remained well-distributed, with 7.9%5 of net lettable area (“NLA”) and 11.6%5 of gross rental income (“GRI”) due for renewal in FY2026. The portfolio continued to reflect a long weighted average lease expiry (“WALE”) of approximately 7.0 years6 by NLA and 4.8 years6 by GRI.
Positive retail rental reversion
Lendlease REIT’s retail portfolio continued to achieve positive rental reversion of 8.9%2 as at 30 September 2025. Tenant retention was 52.2% mainly due to the exit of Cathay Cineplexes, which has been replaced with Shaw Theatres. Excluding Cathay Cineplexes, tenant retention will be 72.9%.
Visitation continued to improve during the quarter, rising 7.7% year-on-year (“YoY”), supported by targeted initiatives and active engagement efforts. These include campaigns by Singapore government agencies and marketing activations at 313@somerset to drive overall footfall and international interest along Orchard Road. Tenant sales dipped 0.8% YoY7. Excluding the contributions from Cathay Cineplexes8, tenant sales remained largely stable.
Capital Management
During the quarter, S$115.5 million of loans have been refinanced. As at 30 September 2025, Lendlease REIT’s gross borrowings were S$1,668.9 million, with a weighted average debt maturity of 2.6 years. The debt portfolio remained fully unsecured, with S$136.1 million in undrawn facilities available to support working capital needs. Sustainability-linked financing represented approximately 93% of total committed debt facilities.
Approximately 68% of borrowings were hedged to fixed rates, and the weighted average cost of debt improved to 3.09% per annum9 as at 30 September 2025. The interest coverage ratio based on the last reported financial results as at 30 June 2025 is 1.6 times10,11.
Mr. Guy Cawthra, Chief Executive Officer of the Manager, said, “The portfolio continued to demonstrate resilience this quarter, underpinned by healthy operating metrics and disciplined capital management. With the divestment of Jem Office nearing completion, we feel confident that Lendlease REIT is well positioned for resilient growth.”
Award and Recognition
Inclusion in iEdge Singapore Next 50 Index
On 22 September 2025, Lendlease REIT was included in the iEdge Singapore Next 50 Index, enhancing its visibility and further expanding its investor base. Average daily trading volume of Lendlease REIT has doubled to approximately 10 million units by volume and around S$6 million by value. Year-to-date from January 2025, Lendlease REIT’s unit price has increased by approximately 14%12, outperforming the FTSE ST REIT Index by around 5 percentage points.
GRESB 2025 Regional Sector Leader in Asia Retail (Listed)
Lendlease REIT continued to demonstrate outstanding performance and top the 2025 GRESB ranking. It was awarded the Regional Sector Leader in Retail Asia (Listed), achieving the highest-tier 5 Star rating for its Environmental, Social and Governance (“ESG”) performance and strong leadership in sustainability. This was also the sixth consecutive year that Lendlease REIT has emerged as the Regional Sector Leader in the Retail Asia (Listed) category.
In addition, Lendlease REIT scored “A” for Public Disclosure, demonstrating its commitment to continually improve its performance in ESG transparency and stakeholder engagement.
About Lendlease Global Commercial REIT
Listed on 2 October 2019, Lendlease Global Commercial REIT (“Lendlease REIT”) 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 30 June 2025, its portfolio comprises leasehold properties in Singapore namely Jem (an office and retail property) and 313@somerset (a prime retail property) as well as freehold interest in Sky Complex (three Grade A commercial buildings) in Milan. These five properties have a total net lettable area of approximately 2.0 million square feet, with an appraised value of S$3.76 billion. Other investments include a stake in Parkway Parade (an office and retail property) and development of a multifunctional event space on a site 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.
About the Sponsor - Lendlease Corporation Limited
Lendlease Corporation Limited is a market-leading Australian integrated real estate group. Headquartered in Sydney, it is listed on the Australian Securities Exchange.
Its core capabilities are reflected in its operating segments of Investments, Development and Construction. The combination of these three segments provides them with a sustainable competitive advantage in delivering innovative integrated solutions for its customers. For more information, please visit: www.lendlease.com.
For more information on Lendlease REIT, please contact Investor Relations:
Lendlease Global Commercial Trust Management Pte. Ltd.
Ling Bee Lin
enquiry@lendleaseglobalcommercialreit.com
Tel: +65 6671 7374
Important Notice
This press release is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Lendlease Global Commercial REIT (“Lendlease REIT”) in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
The value of units in Lendlease REIT (the “Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by Lendlease Global Commercial Trust Management Pte. Ltd. (the “Manager”), DBS Trustee Limited (as trustee of Lendlease REIT) or any of their affiliates.
This press release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, (including employee wages, benefits and training costs), property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.
An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Holders of Units (“Unitholder”) have no right to request the Manager to redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing of the Units on SGX-ST does not guarantee a liquid market for the Units.
This press release is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United State securities laws or the laws of any other jurisdiction.
The past performance of Lendlease REIT is not necessarily indicative of its future performance.
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1 Excluding acquisition fee paid in units and Divestment Fee which the Manager intends to elect to be paid in units.
2 Year-to-date as at 30 September 2025, comparing the weighted average rent of outgoing and incoming leases.
3 Upon the completion of Jem office divestment, portfolio committed occupancy will be 94.1%.
4 Lettable area for Milan assets is based on latest valuation report.
5 Upon the completion of Jem divestment, lease expiry by NLA and GRI for FY2026 will be 9.4% and 13.1%, respectively.
6 Upon the completion of Jem office divestment, WALE will be 4.7 years (by NLA) and 2.9 years (by GRI).
7 1Q FY2026, compared against the corresponding period in FY2025.
8 The Cathay Cineplexes space was vacated at end-March 2025 and subsequently replaced by Shaw Theatres, which is undergoing fit-out works.
9 Excludes amortisation of debt-related transaction costs.
10 Calculation is in accordance with the Property Funds Appendix of the Code on Collective Investment Schemes (“PFA”). The ICR in accordance with loan agreements exceeds 2.5 times, in excess of debt covenant at 2.0 times.
11 Per the PFA, calculation is based on a trailing 12 months period ending on the date of the latest reported financial results. For Lendlease REIT, the last reported financial results is as at 30 June 2025.
12 Based on Lendlease REIT unit price as at 15 October 2025.
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