Lendlease Global Commercial (JYEU) Q2 2025 earnings summary

Executive summary

• Gross revenue for 1H FY2025 was S$103.6 million, down 13.6% year-over-year, mainly due to the absence of one-off supplementary rent from Sky Complex in Milan.

• Net property income declined 19.8% year-over-year to S$74.9 million, reflecting higher property operating expenses and lower revenue.

• Distributable income was S$43.5 million, with DPU at 1.80 cents, a 14.3% decrease year-over-year.

• Portfolio remains anchored in Singapore, accounting for 90% of valuation, with stable suburban retail and office assets.

• Retail portfolio occupancy remained high at 99.9% and office occupancy improved to 86.6%.

Financial highlights

• Gross revenue: S$103.6 million (down 13.6% YoY); NPI: S$74.9 million (down 19.8% YoY).

• Distributable income: S$43.5 million (down 11.8% YoY); DPU: 1.80 cents (down 14.3% YoY).

• Net profit after tax was S$29.1 million, down 4.3% YoY; total comprehensive income attributable to unitholders was S$9.1 million, down 40.5% YoY due to currency translation losses.

• Higher finance costs due to increased weighted average cost of debt at 3.57% p.a.

• Retail rental reversion at 10.7%; office rental uplift at 1.2%.

Outlook and guidance

• Focus on proactive asset management, prudent capital management, and sustainable returns.

• Continued progress towards ESG targets and resilient portfolio performance.

• Singapore retail market expected to see continued demand for prime spaces but faces challenges from e-commerce, manpower shortages, and higher costs.

• Limited new office supply in Singapore may support rental growth; Milan repositioning Building 3 for multi-tenancy to capture market rentals.