Singapore: Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT, announced a notable increase in its first-half financial results for FY2026, with distributable income reaching SG$48.6 million, marking an 11.7% rise year-on-year. This translates to a distribution of 1.85 cents per unit. The results were achieved amid a backdrop of strategic portfolio adjustments.

According to BERNAMA News Agency, the gross revenue for Lendlease REIT stood at SG$101.9 million, experiencing a slight decline of 1.6%, while net property income was SG$74.0 million, down by 1.2%. These decreases were mainly attributed to the divestment of the Jem office and the transition from Cathay Cineplexes to Shaw Theatres. However, the REIT's strategic repositioning has shown resilience, as highlighted by the manager's Chief Executive Officer, Guy Cawthra. He emphasized the strong foundation provided by the Singapore-based assets, which constitute 90% of the portfolio, ensuring stable returns for stakeholders.

The strategic acquisition of a 70% stake in PLQ Mall in November 2025, coupled with the divestment of the Jem office, significantly shifted the portfolio's focus, with 63% now concentrated in suburban retail. On a like-for-like basis, excluding the Jem office divestment, the REIT reported a 0.6% growth in gross revenue and a 1.1% increase in net property income. Property operating expenses also improved by 2.7% year-on-year, primarily due to reduced maintenance needs at the Milan assets.

Lendlease REIT's financial stability is underscored by gross borrowings of SG$1.178 billion and a gearing ratio of 38.4%, with no refinancing risks anticipated for FY2026. Notably, sustainability-linked financing comprises 93% of the total committed debt. The REIT also secured a two-year energy tariff contract for its Singapore portfolio, effective July 1, 2026, which is projected to lower electricity expenses by approximately 15% annually.