Lendlease REIT

[Seah.tt]

bought from open mkt 0.675...

 

[fatboy9174]

Hi, so for 2000 shares, wat is the number I need to fill in so as not to get odd number of shares?

 

[reddevil0728]

Hi, so for 2000 shares, wat is the number I need to fill in so as not to get odd number of shares?

You got see a few posts up?

 

[lunafan]

Made this scrip calculator for you to calculate the amount of scrip to elect to avoid odd lots. Also shows you the amount you'll lose due to rounding for each tier.

Although the utmost care has been taken in coding this correctly, please still DYODD and verify with your calculations

https://jsfiddle.net/kc9rjb0n/show?a=1

You're welcome

Thanks for the calculator
much appreciated

 

[Raynon]

bought from open mkt 0.675...

Waiting 0.655

 

[starbugs]

Withdrew my DRP instruction. Taking cash now

 

[Shion]

CGS-CIMB ups Lendlease REIT’s TP to 90 cents on the back of higher earnings forecasts and lower COE​

https://www.theedgesingapore.com/ca...p-90-cents-back-higher-earnings-forecasts-and
CGS-CIMB Research analysts Natalie Ong and Lock Mun Yee have kept their “add” call on Lendlease Global Commercial REIT (LREIT) JYEU 0.00% with a higher target price of 90 cents from 88 cents previously as they see both organic and inorganic growth possibilities for the REIT.

In their March 29 report, the analysts estimate that the REIT’s portfolio valuation could increase by 4.1% y-o-y to $3.7 billion. This is based on increases in the valuations of 313@Somerset, Jem and Sky Complex by 2.1%, 4.4% and 0.2% respectively.

The uplifts can come from rental escalation and indexation, positive reversions and the deployment of the 10,200 sq ft of unutilised gross floor area (GFA) at 313@Somerset, note the analysts.

Without the fair valuation gains, the analysts’ FY2024 gearing of 40.2% for the REIT translates into a debt headroom of $115.8 million, assuming an internal gearing limit of 42%. However, once the increments are factored in, the analysts’ gearing estimate would be lowered to 38.8% from 40.2% for the FY2024. The increase in the REIT’s properties’ valuations would also increase its debt headroom by 92.5%, from $115.8 million to $222.9 million, based on a 42% gearing limit.

The analysts also see the possibility of the REIT acquiring a 12% stake in Paya Lebar Quarter (PLQ) or 40% of its sponsor’s 30% stake in PLQ. This is after the increase in its asset valuation, which should lower its gearing and increase its debt headroom, the analysts note.

The REIT may also be able to acquire its sponsor’s entire 6.1% stake in Parkway Parade, or up to 32% of the entire asset if the other shareholders are willing to divest their stakes, the analysts add.

Further to their report, the analysts have upped their distribution per unit (DPU) estimates by 0.3%, 0.3% and 2.9% for the FY2023, FY2024 and FY2025 respectively as they foresee higher earnings from the REIT and lower cost of equity (COE) of 7.5% from 7.9% previously.

Despite its organic growth potential, the analysts note that LREIT’s unit price has underperformed the Singapore REITs index (FSTREI), falling by 18.1% since March 2022 compared to the index’s 12.9% decline during the same period. According to them, the underperformance is attributed to its adjusted interest coverage ratio (ICR) falling below 2.5x, which caps its gearing at 45% compared to the 50% for Singapore REITs (S-REITs) with adjusted ICRs above 2.5x.

In their view, the lower gearing limit translates into a smaller debt headroom and hampers inorganic growth.

At present, the analysts don’t expect the REIT’s adjusted interest coverage ratio (ICR) to cross the 2.5x mark in the next few years due to the higher cost of debt and perpetual securities secured in this elevated interest rate environment.

“In the meantime, LREIT is trading at [an] attractive 6.6%/6.9% FY2023/FY2024 DPU yields [or] 2.5 standard deviation (s.d.) of [its] historical yield,” the analysts write.

To them, stronger-than-forecasted reversions and accretive acquisitions are re-rating catalysts while weaker-than-expected reversions or leasing rates and a slowdown in consumer spending, which may result in lower gross turnover rents and weaker tenant sentiment, are downside risks.

As at 4.36pm, units in LREIT are trading 0.5 cents lower or 0.74% down at 67.5 cents.

 

[Shion]

Lendlease Global Commercial REIT enters facility agreement for loans of up to EUR300 mil​

https://www.theedgesingapore.com/ne...it-enters-facility-agreement-loans-eur300-mil
The manager of Lendlease Global Commercial REIT (LREIT) JYEU 0.00% announced on April 20 that the REIT’s trustee, DBS Trustee Limited, has entered into a facility agreement for senior unsecured sustainability-linked term and revolving credit facilities of up to EUR300 million ($438.81 million).

The facilities will go towards refinancing LREIT’s existing debt and financing the payment of any fees and expenses, in addition to the general working capital and corporate purposes of LREIT and its subsidiaries.

The manager says it is a mandatory prepayment event under the facility agreement if Lendlease Corporation Limited, the sponsor of LREIT, does not or ceases at any time to own directly or indirectly at least 51% of the issued and fully paid share capital of the manager without the prior written consent of all the lenders, or if the manager resigns or is removed.

The aggregate amount of facilities that may be affected is up to $1.5 billion, excluding interest and fees, as at April 20.

Units in Lendlease Global Commercial REIT closed 0.5 cents higher, or 0.72% up, at 70 cents on April 20.

 

[Shion]

Analysts remain positive on LREIT’s portfolio after improving retail operations in 3QFY2023 update​

https://www.theedgesingapore.com/ca...s-portfolio-after-improving-retail-operations
Analysts from Citi Research and DBS Group Research are keeping their “buy” calls on Lendlease Global Commercial REIT (LREIT) JYEU 0.74% after the REIT’s business update for the 3QFY2023 ended March 31 reflected operational improvements in its portfolio. The analysts have also kept their target prices unchanged at 78 cents for Citi and $1 for DBS.

On May 9, LREIT reported an overall portfolio committed occupancy of 99.8% as at March 31, unchanged q-o-q. Its weighted average lease expiry (WALE) stood at 8.3 years by net lettable area (NLA) and 5.4 years by gross rental income (GRI).

The REIT’s retail portfolio occupancy stood at 99.5% while achieving positive retail reversion of 3.3% year-to-date (ytd). While the REIT did not release its occupancy rate for its office portfolio, it revealed that its offices achieved positive rental escalation of 4% for Sky Complex in Italy. LREIT’s office portfolio also had a long WALE of 12.2 years by NLA and 15.0 years by GRI.

As at March 31, LREIT’s gearing stood at 39.3% while its interest coverage ratio (ICR) stood at 4.6 times. The REIT’s fixed rate borrowings were only at 61% while its weighted average cost of debt stood at 2.51% per annum (p.a.).

“Our assets continued to perform well, underpinned by a high portfolio occupancy with a long WALE of 5.3 years by GRI, which will ensure long-term cashflow stability. With refinancing out of the way, we plan to focus on organic growth through proactive asset management and managing our leases,” said Kelvin Chow, CEO of the manager, in LREIT’s statement.

To Citi’s Brandon Lee, the REIT’s business update “painted an improving retail operational landscape, evidenced by better q-o-q positive rent reversion, stable occupancy and tenant sales now at 17-18% above pre-Covid”.

The team of analysts at DBS also noted that LREIT’s flagship 313@Somerset continued to “drive good growth” for the REIT on sustained strong tenant sales.

“Its unique offering that shies away from high-end luxury offering with large exposure to experiential retail and social trade sectors such as food and beverage (F&B) has done well for tenant sales for the mall, maintaining consistently above pre-Covid levels, in tune to what we have witnessed for most suburban retail malls,” says the DBS team.

“[313@Somerset’s] Proximity to Somerset MRT station will be key to attaining shopper traffic and retail sales from tourists coming to visit the Orchard belt area,” it adds.

To Citi’s Lee, LREIT’s relatively higher gearing, albeit better than most of its retail peers, and lower adjusted ICR of 2.0x is likely to have contributed to the REIT’s underperformance ytd. However, he adds that the REIT manager’s latest comments on its strategy ahead, which focuses on the maximisation of LREIT’s own portfolio and pre-emptive equity fund raising may remove any potential equity overhang.

That said, the analyst estimates that LREIT’s shopping traffic at 15.4 million, down 10% q-o-q, is still around 10% below its pre-Covid-19 levels.

With the construction of the multi-functional event space at 313@Somerset to begin in 3Q2023 and is likely to be completed by 2024, Lee believes that maiden income contribution from the event space (though small at less than 1% of LREIT’s net property income or NPI) and spillover visitation into the mall would only come in during LREIT’s FY2025.

At its current unit price levels, Lee believes LREIT’s valuations remain cheap with its yield of 6.9%, compared to its larger-cap peers’ yields of 5.5% to 5.7%.

He adds that asset divestments are a key catalyst to the rerating of LREIT’s unit price.

To the DBS team, LREIT may focus on growing its portfolio organically instead of conducting acquisitions for the time being. It also does not foresee divestments to happen in the near-term with Sky Complex still being below sub-market rents, where there’s potential to extract further value from the property before divesting it.

“In the coming two years, LREIT will look to start the commencement of Grange Carpark facility towards 3Q2023, alongside further extraction of plot ratio at 313@Somerset (up to 10,200 sq ft), which we think they will look to unwind near the completion of Grange Carpark facility to minimise operational disruption,” the team writes.

On LREIT’s positive rental reversions, the team notes that there is still room for further reversionary rents with 313@Somerset continuing to drive “good growth” for the REIT. Passing rents also continue to point to further upside, adds the team with the average along the Orchard Road belt continuing to hover some 5% to 10% below pre-Covid-19 levels.

Units in LREIT closed 1 cent lower or 1.46% down at 67.5 cents on May 9.

 

[Shion]

Lendlease Global Commercial Reit bags 10% shares in Parkway Parade Partnership for S$90.5 million​

https://www.businesstimes.com.sg/co...ags-10-shares-parkway-parade-partnership-s905
LENDLEASE Global Commercial Reit (LReit) has taken over a 10 per cent share of Parkway Parade Partnership (PPP) for S$90.5 million.

The amount was based on a S$1.38 billion agreed market value of the 291 strata lots PPP owns in Parkway Parade, an integrated office and retail development in Marine Parade.

PPP holds an indirect 100 per cent interest in the 291 strata lots, which represent 77.09 per cent of the lots’ total share value.

The seller is Lendlease Asia Investments Pty Limited, a direct wholly-owned subsidiary of the real estate investment trust’s (Reit) sponsor.

The S$90.5 million estimated acquisition cost comprises a purchase consideration of S$88.9 million, and a S$0.9 million acquisition fee payable in LReit units to the manager. Estimated professional and other fees and expenses incurred or to be incurred by LReit in connection with the acquisition will amount to S$700,000, the manager further disclosed in a bourse filing on Monday (Jun 5). Stamp duty alone will cost S$200,000, it added.

Nevertheless, LReit’s manager said the acquisition benefits unit holders because it grants LReit flexibility to raise its stake in the properties over time through pre-emptive rights, and leads to distribution per unit (DPU) accretion on a pro forma basis.

For illustration, it stated in the filing that, assuming that the acquisition had been effected at the beginning of the reporting period on Jul 1, 2021, LReit’s DPU for the 2022 financial year would have risen to 4.89 Singapore cents, up from 4.85 cents before the acquisition.

The higher DPU on a pro forma basis is a result of the acquisition being made at a price reflective of the cash flows which the PPP interest is expected to generate, combined with the debt-financing plan implemented by the manager, the manager pointed out.

LReit unitholders also stand to gain from greater income diversification with an increased exposure in the resilient suburban retail segment, it added.

The manager also said the acquisition is in line with its principal investment strategy to invest, directly or indirectly, in a diversified portfolio of stabilised, income-producing real estate assets located globally.

Apart from the acquisition fee to be paid in the form of units, the total acquisition cost has been financed through debt facilities and LReit’s internal resources, the manager said.

Upon the completion of the acquisition, the pro forma gearing of LReit is 40.4 per cent as at Dec 31, 2022.

LReit units closed flat at S$0.67 on Monday (Jun 5), before the announcement.

 

[Raynon]

Gearing at 40.4% after acquisition, am I understanding it correctly?

 

[prophetjul]

This REit seems to be facing lots of selling pressure.
Any reason?

 

[DevilPlate]

This REit seems to be facing lots of selling pressure.
Any reason?

Alot of reits same same

 

[Shion]

LREIT reports 2HFY2023 DPU of 2.25 cents, bringing full year distribution to 4.7 cents​

https://www.theedgesingapore.com/ca...ents-bringing-full-year-distribution-47-cents
Lendlease Global Commercial REIT has reported a distribution per unit of 2.25 cents for 2HFY2023 ended June, down 8.2% y-o-y from 2HFY2022's 2.45 cents, no thanks to higher borrowing costs. This brings the full-year DPU to 4.7 cents, down 3.2% over FY2022.

Net property income for whole of FY2023 was up 2 times to $153.9 million, while gross revenue was up similarly to $204.9 million, thanks to contribution from newly acquired interests in Jem as well as higher rental reversion.

LREIT’s portfolio committed occupancy remained high at 99.9% with a long weighted average lease expiry of 8.2 years by net lettable area and 5.5 years by gross rental income.

Lease expiring profile remained well-spread with only 5.2% by NLA and 10.6% by GRI due for renewal in FY2024.

As at June 30 2023, LREIT’s portfolio was valued at $3.65 billion, up 1.4% y-o-y, thanks to higher market rents and improved market sentiments in Singapore’s retail sector.

"Moving forward, we will continue to leverage on our operational capabilities to safeguard LREIT’s business and create value for its unitholders, while adopting a cautious approach amidst the ongoing uncertainties in the global economy and the interest rate environment," says Kelvin Chow, CEO of the REIT's manager.

LREIT closed Aug 7 at 67 cents, unchanged for the day and down 5.63% year to date.

 

[Overture1928]

Will add if it goes to 0.63

 

[jtsh55]

https://links.sgx.com/1.0.0/corpora...ice of Record Date and Application of DRP.pdf

 

[duhduhduh]

DRP hmm

Any reason why the counter has dropped again? Just plain interest rates factors?

 

[homer123]

Will add if it goes to 0.63

Probably will reach this price ex CD

 

[sohguanh]

This REIT has a high gearing ratio by my own standard. 40% and above to me is quite high but of cuz there are other factors to be taken into consideration when one research individual REIT stock. Think may wait after CD see how.

 

[FrontierX]

Cui sia this counter. Regret buying