The manager of Lendlease Global Commercial REIT (Lendlease REIT) has announced its 1QFY2026 ended Sept 30 business updates, which saw portfolio occupancy improving to 95%.
The REIT’s retail portfolio had an occupancy rate exceeding 99%; occupancy at the Milan office portfolio increased to 88.5% from 81.6% in June 2025, supported by active leasing efforts at Building 3.
Lease expiry profile as at Sept 30 was 7.9% and 11.6% of gross rental income is due for renewal in FY2026.
The REIT’s weighted average lease expiry as at Sept 30 was 7 years by NLA, and 4.8 years by GRI.
Lendlease REIT is expecting the divestment of Jem office to be completed by Nov 12, 2025, which will unlock a $8.9 million gain on disposal available for distribution to unitholders.
During the quarter, $115.5 million of loans have been refinanced. As at Sept 30, Lendlease REIT’s gross borrowings were $1,668.9 million, with a weighted average debt maturity of 2.6 years.
See also: Sheng Siong reports earnings of $43.7 mil for 3QFY20252, up 12% y-o-y
Approximately 68% of borrowings were hedged to fixed rates, and the weighted average cost of
debt improved to 3.09% per annum as at Sept 30. The interest coverage ratio based on the last reported financial results as at June 30 is 1.6 times.
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Units in Lendlease REIT closed 1 cent lower or 1.515% down at 65 cents on Oct 30.
