Key Highlights
- Post financial year end, the Manager entered into an agreement to divest Jem office for S$462.0 million, in line with valuation. The transaction will strengthen Lendlease REIT’s capital structure, positioning it for future growth.
- Distribution per unit (“DPU”) for 2H FY2025 grew 1.8% year-on-year (“YoY”) to 1.80 cents. A more favourable interest rate outlook is expected to contribute positively towards distribution performance.
- Cost of debt for the financial year is at 3.46% per annum with interest coverage ratio (“ICR”)1,2 improved to 1.6 times.
- Portfolio valuation increased 2.2% YoY mainly supported by a positive outlook for our Singapore assets.
- The portfolio experienced positive rental growth, with a 10.2%3 reversion in retail and a 1.7%4 uplift in Milan’s commercial Building 1 and 2.
SINGAPORE, Aug. 04, 2025 (GLOBE NEWSWIRE) — Lendlease Global Commercial Trust Management Pte. Ltd. (the “Manager”), the manager of Lendlease Global Commercial REIT (“Lendlease REIT”), announces its second-half and full-year financial results for FY2025.
Strengthening Capital Structure Through Divestment of Jem Office
Post financial year end, the Manager entered into an agreement to divest Jem office to an unrelated third-party for S$462.0 million, in line with valuation. The Manager intends to utilise the sales proceeds predominantly towards repayment of borrowings. On a proforma basis, if the sales proceeds were used to repay Lendlease REIT’s borrowings as at 30 June 2025, its aggregate leverage would have reduced from 42.6% to approximately 35%. The transaction will strengthen Lendlease REIT’s capital structure with improved financial flexibility for future growth.
Further information can be found within the announcement “Divestment of Office Component of Jem” dated 4 August 2025.
Financial Performance
Gross revenue and net property income (“NPI”) for FY2025 were 6.5% and 10.0% lower YoY, amounting to S$206.5 million and S$148.8 million respectively. This was mainly attributed to the upfront recognition of supplementary rent5 in relation to the lease restructuring of Sky Complex that was received in FY2024. On a proforma basis, after adjusting6 for the supplementary rent5, gross revenue and NPI for FY2025 were 1.1% and 0.1% higher YoY respectively.
Property expenses in FY2025 at S$57.8 million were S$2.2 million higher compared to FY2024, impacted by the provision of doubtful debts for Cathay Cineplexes. Excluding this one-off provision, expenses remained broadly stable. DPU for 2H FY2025 grew 1.8% YoY to 1.80 cents. Lendlease REIT unitholders can expect to receive their distribution on 24 September 2025.
Capital Management
As at 30 June 2025, gross borrowings were S$1,664.3 million with a weighted average debt maturity of 2.6 years. Sustainability-linked financing continues to represent approximately 86% of Lendlease REIT’s total committed debt facilities. As at the financial year end, Lendlease REIT’s debt portfolio remains unsecured, with S$135.9 million in undrawn facilities available to support working capital requirements.
Approximately 68% of the borrowings are hedged to fixed rates, with weighted average cost of debt for FY2025 at 3.46% per annum7. As at 30 …