Lendlease Global Commercial (JYEU) Q1 2026 earnings summary

Executive summary

• Jem office divestment is expected to complete by 12 November 2025, unlocking a S$8.9 million gain for distribution and reducing leverage to about 35% on a proforma basis.

• Portfolio occupancy improved to 95.0% as of 30 September 2025, with retail occupancy exceeding 99% and Milan office occupancy rising to 88.5%.

• Retail portfolio achieved an 8.9% positive rental reversion year-to-date, with tenant retention at 52.2% due to Cathay Cineplexes' exit, replaced by Shaw Theatres.

• Active capital management led to improved cost of debt at 3.09% per annum, down from 3.46% as at 30 June 2025.

• Inclusion in the iEdge Singapore Next 50 Index and recognition as GRESB 2025 Regional Sector Leader (Retail Asia Listed) enhance visibility and ESG credentials.

Financial highlights

• Portfolio value stands at S$3.76 billion as of 30 September 2025.

• Market capitalisation is S$1.5 billion, with a dividend yield of 5.8% based on FY2025 DPU.

• S$115.5 million of loans refinanced during the quarter; gross borrowings at S$1,668.9 million with 2.6 years average maturity.

• 68% of borrowings hedged to fixed rates; interest coverage ratio stands at 1.6 times as at 30 June 2025.

• Tenant sales dipped 0.8% year-over-year, while visitation grew 7.7% year-over-year.

Outlook and guidance

• Focus on growing the Singapore portfolio and optimising through further non-core asset disposals.

• Continued efforts to drive sustainable income growth via active asset management and new tenancies.

• Management expresses confidence in resilient growth, supported by healthy operating metrics and disciplined capital management.

• Jem office divestment expected to further strengthen balance sheet and support future growth.

• Leasing initiatives to lease up Building 3 in Milan and targeted marketing to enhance retail performance.