LENDLEASE Global Commercial Reit (Lendlease Global Reit) on Monday (Nov 11) posted a committed portfolio occupancy of 89.5 per cent for the first quarter ended Sep 30, up from 89.1 per cent in the previous quarter.
This came from new leases committed for Building 3 of the Sky Complex property in Milan, Italy, the real estate investment trust (Reit) manager said in a business update for Q1 FY2025.
As at Sep 30, the Reit’s retail portfolio stood at 99.9 per cent, with a positive rental reversion of 11.4 per cent and a tenant retention rate of 90 per cent. Tenant sales in Q1 FY2025 continued to trend above pre-Covid levels on average, its manager said.
In spite of the high occupancy rate, the Reit manager said it would continue to strengthen the tenancy mix and bring in new offerings to rejuvenate the malls. It has brought on board new tenants such as Tims Signature, the largest Tim Hortons outlet in Singapore, and the Hermes-themed Eclaire & Savoir Cafe.
In addition, the renovation of the Food Republic food court in 313@somerset will be completed by end-2024, unveiling a refreshed look and new dining options.
Office tenants accounted for about a fifth (approximately 21 per cent) of the Reit’s portfolio by gross rental income (GRI), with a long weighted average lease expiry (Wale) of 12.2 years by net lettable area (NLA) and 14.5 years by GRI.
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As at Sep 30, the committed occupancy rate for the Milan property, Sky Complex, had improved to 75 per cent; the manager is now in advanced negotiations with potential tenants. The rental review for the Jem office tower in Jurong has also started.
Kelvin Chow, chief executive officer of the Reit manager, said: “The leasing of Sky Complex Building 3 is progressing well, and we continue to receive leasing interest for the space.”
As at Sep 30, the Reit’s portfolio Wale stood at an estimated 7.4 years by NLA, and 4.7 years by GRI.
Gross borrowings were S$1.6 billion, with a gearing ratio of 40.7 per cent and weighted average debt maturity of 2.3 years.
Chow noted that improvements in operating performance were broad-based, with positive rental reversion and higher portfolio occupancy.
“We will continue to focus on proactive asset management to strengthen our portfolio and exercise prudence in capital management.”
Units of Lendlease Global Commercial Reit closed at S$0.565 unchanged on Monday, before the release of the business update.
