Lendlease REIT

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Andrew833

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hound297 said:
Interest rate rising. More expensive to borrow = less accquisition.
Click to expand...
Not true.
Same as kopitiam stall, higher rent sell higher price.
Higher interest rate, just charge higher rent.

More in-depth;
If the REIT debts maturity is well manage, rising interest rate will not affect much. At most reduce 0.5% to 1% of the DPU.
 
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hound297

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Andrew833 said:
Not true.
Same as kopitiam stall, higher rent sell higher price.
Higher interest rate, just charge higher rent.

More in-depth;
If the REIT debts maturity is well manage, rising interest rate will not affect much. At most reduce 0.5% to 1% of the DPU.
Click to expand...
I though that was the case for 2018 where REITs across the board dropped in share price due to expectation of interest rate hike by the Feds ?
 
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Shion

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LREIT to potentially benefit if HSR is revived: UOBKH​


https://www.theedgesingapore.com/ca...reit-potentially-benefit-if-hsr-revived-uobkh
UOB Kay Hian analyst Jonathan Koh is of the view that Lendlease Global Commercial REIT (LREIT) can benefit from the potential revival of the Kuala-Lumpur-Singapore High-Speed Rail (HSR), maintaining his “buy” call and target price of 99 cents on the REIT.

On Aug 22, Malaysia’s prime minister Ismail Sabri Yaakob said Malaysia is discussing with Singapore the revival of the HSR project.

If revived, the HSR project's terms and conditions would see some changes, Ismail said. If possible, the Malaysians would like to speed up the planning process.

Malaysia also wants to establish a HSR between Kuala Lumpur and Bangkok, which means the HSR could connect Singapore to Bangkok if all three Asean countries can reach an agreement.

Koh says that LREIT’s largest asset, office and retail development Jem will be a “prime” beneficiary of the HSR. Jem is located adjacent to the Jurong East MRT Station, which is 600m away from the HSR’s terminal station.

He highlights that Jem will benefit from increased shopper traffic, adding that “the upcoming HSR, if agreed and constructed, would bring more vibrancy to Jurong Gateway as the second CBD in Singapore.”

Koh points out that Jem will benefit from an increase in shopper traffic brought about by the patronage of employees working in office buildings nearby and tourists from across the
ASEAN region.

Locally, Jem will benefit from the development of Jurong Gateway as Singapore’s second CBD, with Koh describing it as a “popular suburban mall” with shopper traffic of 22 million per year and occupancy at 100%.

A link bridge connecting Jem to Perennial Business City with a net lettable area (NLA) of over 1 million square feet is already completed, and will increase the flow of office workers visiting Jem during lunch time and after work when Perennial Business City is expected to progressively commence operations in 2022.

For Jem itself, its retail component, - making up 65% of its NLA - achieved a positive rent reversion in FY2022 and provides annual rental escalation of 3.2%.

Koh also notes that the suburban mall has an “attractive mix” of anchor tenants, such as IKEA, FairPrice Xtra, Don Don Donki, H&M, and UNIQLO.

The office component (35% of NLA) is fully leased to Singapore’s Ministry of National Development (MND) under a 30-year lease with mark-to-market rent reviews every five years.

With ownership of Jem at 100%, LREIT can generate recurrent savings of $5.6 million per
year from tax transparency.

Moving forward, Koh says LREIT plans top grow through acquisitions by tapping on the right of first refusal (ROFR) provided by its sponsor, Lendlease Group.

Lendlease Group has a strong presence in Singapore through a 30% stake in Paya Lebar Quarter (30% stake) and a 49% stake in the redevelopment of Comcentre.

The Comcenter redevelopment is a 51:49 joint venture between Singtel and Lendlease, and will comprise two 20-storey buildings with 1.18 million sq ft of premium grade office space and 32,300 sq ft of retail space, including Singtel’s new flagship store.

Finally, Koh highlights that LREIT trades at an “attractive” FY2023 distribution yield of 6.2%, which is higher than most of its peers.

According to Koh’s estimates, LREIT’s peers, CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Mapletree Pan Asia Commercial Trust (MPACT) and Suntec REIT are trading at respective yields of 5.5%, 5.7%, 5.7% and 6.4%.

As at 2.29pm, units in LREIT are trading at 81.5 cents, with a FY2023 P/B ratio of 1.1.
 
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starbugs

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This Reit seems forgotten. Tenant sales much higher than pre-Covid, good chance of strong positive reversions. When I passed by 313 and JEM, they seem really crowded. 6.8% yield now.

Last week's news:

https://www.businesstimes.com.sg/co...-q1-portfolio-occupancy-eases-slightly-to-997

Lendlease Global Reit’ s Q1 portfolio occupancy eases slightly to 99.7%

The manager has plans to optimise the remaining untapped gross floor area to maximise the full potential of 313@somerset.

Lendlease Global Reit’s portfolio occupancy for the quarter ended Sep 30 fell 0.1 percentage point to 99.7 per cent, down from 99.8 per cent last quarter, said the manager on Monday (Nov 7).

Weighted average lease expiry (WALE) - the mean time remaining on its leases - stood at 8.5 years when adjusted by net lettable area (NLA) and 5.5 years when adjusted by gross rental income (GRI).

The Reit’s manager, however, highlighted a long WALE for its office portfolio at 12.7 years by NLA and 15.5 years by GRI. This will ensure a stable income for the Reit’s unitholders, said the manager.

Meanwhile, Lendlease Reit’s retail portfolio saw a 99.3 per cent occupancy in Q1 FY2023, driven by healthy leasing momentum.

“As at the period end, a positive rental reversion of approximately 1 per cent was recorded with a healthy tenant retention rate of approximately 69 per cent. Tenant sales for the first three months of FY2023 continued to surpass pre-Covid-19 average levels,” said the manager, adding that interest in leasing the atrium space of the malls has also risen.

In the near term, the manager has plans to optimise the remaining untapped gross floor area of 10,200 square feet from the Urban Redevelopment Authority Master Plan 2019 to maximise the full potential of 313@somerset and create new value for Lendlease Reit’s unitholders.

For Jem, while there is no additional plot ratio granted, the manager will look to convert spaces into leasable units to generate additional revenue.

The Reit has a gearing ratio of 39.4 per cent with gross borrowings amounting to S$1.415 billion. As at Sep 30, Lendlease Reit has undrawn debt facilities of S$172.2 million to fund its working capital, with over two-thirds of its borrowings hedged to a fixed rate.

Kelvin Chow, chief executive of the manager, said he expects the positive momentum driven by tourism recovery and a rising number of the return-to-office crowd to underpin the Reit’s performance for the financial year.

“In addition, we are looking to increase non-rental revenue, unlock savings through the adoption of smart technologies to improve the efficiency of the assets and reduce non-core expenses to cushion the impact from rising interest rates and utilities costs,” added Chow.
 
A

Andrew833

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starbugs said:
This Reit seems forgotten. Tenant sales much higher than pre-Covid, good chance of strong positive reversions. When I passed by 313 and JEM, they seem really crowded. 6.8% yield now.

Last week's news:

https://www.businesstimes.com.sg/co...-q1-portfolio-occupancy-eases-slightly-to-997

Lendlease Global Reit’ s Q1 portfolio occupancy eases slightly to 99.7%

The manager has plans to optimise the remaining untapped gross floor area to maximise the full potential of 313@somerset.

Lendlease Global Reit’s portfolio occupancy for the quarter ended Sep 30 fell 0.1 percentage point to 99.7 per cent, down from 99.8 per cent last quarter, said the manager on Monday (Nov 7).

Weighted average lease expiry (WALE) - the mean time remaining on its leases - stood at 8.5 years when adjusted by net lettable area (NLA) and 5.5 years when adjusted by gross rental income (GRI).

The Reit’s manager, however, highlighted a long WALE for its office portfolio at 12.7 years by NLA and 15.5 years by GRI. This will ensure a stable income for the Reit’s unitholders, said the manager.

Meanwhile, Lendlease Reit’s retail portfolio saw a 99.3 per cent occupancy in Q1 FY2023, driven by healthy leasing momentum.

“As at the period end, a positive rental reversion of approximately 1 per cent was recorded with a healthy tenant retention rate of approximately 69 per cent. Tenant sales for the first three months of FY2023 continued to surpass pre-Covid-19 average levels,” said the manager, adding that interest in leasing the atrium space of the malls has also risen.

In the near term, the manager has plans to optimise the remaining untapped gross floor area of 10,200 square feet from the Urban Redevelopment Authority Master Plan 2019 to maximise the full potential of 313@somerset and create new value for Lendlease Reit’s unitholders.

For Jem, while there is no additional plot ratio granted, the manager will look to convert spaces into leasable units to generate additional revenue.

The Reit has a gearing ratio of 39.4 per cent with gross borrowings amounting to S$1.415 billion. As at Sep 30, Lendlease Reit has undrawn debt facilities of S$172.2 million to fund its working capital, with over two-thirds of its borrowings hedged to a fixed rate.

Kelvin Chow, chief executive of the manager, said he expects the positive momentum driven by tourism recovery and a rising number of the return-to-office crowd to underpin the Reit’s performance for the financial year.

“In addition, we are looking to increase non-rental revenue, unlock savings through the adoption of smart technologies to improve the efficiency of the assets and reduce non-core expenses to cushion the impact from rising interest rates and utilities costs,” added Chow.
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One of my favourite.
 
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