Lendlease Global Commercial REIT (LREIT) has reported a distribution per unit (DPU) of 1.85 cents for the 1HFY2026. The DPU includes an advance distribution of 1.3305 cents for the period from July 1 to Nov 13, 2025.
Gross revenue for the six months ended Dec 31, 2025, fell by 1.6% y-o-y to $101.9 million while net property income (NPI) also fell by 1.2% y-o-y to $74 million.
The declines were mainly due to the divestment of Jem’s office component. Revenue was also impacted by the exit of Cathay Cineplexes during the period. Cathay Cineplexes has since been replaced by Shaw Theatres, which began operations in November 2025.
Excluding the Jem office divestment, LREIT’s gross revenue and NPI would have risen by 0.6% and 1.1% respectively, says the REIT manager.
The gain of $8.9 million from the divestment remains available for future distribution, the REIT manager adds. Deployment will “be aligned with the strategy of delivering stable and sustainable growth in DPU over the long term”.
1HFY2026 distributable income was up by 11.7% y-o-y to $48.6 million mainly due to lower interest expense and perpetual securities coupons and was partly offset by the divesment of the Jem office and the lease termination of Cathay Cineplexes.
LREIT had 2.96 billion units in issue as at Dec 31, 2025, compared to 2.42 billion units the year before.
As at Dec 31, 2025, LREIT’s gearing ratio fell to 38.4% from 42.7% in 1QFY2026. Cost of debt improved to 2.9% per annum, compared to 3.09% per annum as at Sept 30, 2025. Interest coverage ratio (ICR) stood at 1.8 times, from 1.6 times in 1QFY2026.
As at the same period, portfolio occupancy stood at 94.9% while the REIT’s weighted average lease expiry (WALE) stood at 4.8 years by net lettable area (NLA).
See also: Alpha Integrated REIT declares FY2025 distribution of 3.53 cents per unit
Retail rental reversion stood at a positive 10.4% while office rentals saw an uplift of 1.7%.
In his note, Citi’s Brandon Lee kept his “buy” call and 70-cent target price on LREIT as the REIT’s results reflected a “healthy retail performance” given the strong rent reversion, “decent” tenant sales, visitation growth and strong occupancy of 99.5% during the period.
While LREIT’s DPU missed Lee’s and the consensus’ expectations slightly, this was mitigated by the acquisition of the 70% stake in PLQ Mall in November 2025, lower debt expenses and slight NPI margin improvement.
“Our first‑half distribution of 1.85 cents per unit, representing a 3.1% y-o-y increase, underscores the resilience of our repositioned portfolio and the disciplined execution of our strategy,” says Guy Cawthra, CEO of the manager.
“With 90% of our assets now anchored in Singapore, we are firmly positioned to benefit from the strength and stability of our home market,” he adds.
Unitholders can expect to receive their distributions on March 30
Units in LREIT closed 1 cent lower or 1.58% down at 62.5 cents on Feb 13.
