Lendlease Global Commercial (JYEU) Q2 2026 earnings summary

Executive summary

• Distribution per unit rose 3.1% year-over-year to 1.85 cents for 1H FY2026, reflecting portfolio resilience, strong Singapore retail performance, and lower interest costs.

• Completed divestment of Jem office and acquired a 70% stake in PLQ Mall, increasing Singapore portfolio exposure to 90% by value and 63% in suburban retail.

• Tenant sales grew 7.2% YoY, with like-for-like growth of 1.1% excluding PLQ Mall.

• Portfolio occupancy remained high at 94.9%, with retail occupancy near 100%.

• Profit after tax surged 83.8% to S$53.5 million, driven by gains from joint ventures, associates, and derivative fair value changes.

Financial highlights

• Gross revenue for 1H FY2026 was S$101.9 million, down 1.6% YoY due to Jem office divestment; like-for-like revenue up 0.6%.

• Net property income was S$74.0 million, down 1.2% YoY; like-for-like NPI up 1.1%.

• Distributable income increased 11.7% YoY to S$48.6 million.

• DPU of 1.85 cents includes an advanced distribution of 1.33 cents.

• Net asset value per unit at S$0.71 as of 31 Dec 2025.

Outlook and guidance

• Focus on portfolio optimisation, including reconfiguration at PLQ Mall and ongoing energy efficiency initiatives.

• Retail demand in Singapore expected to remain healthy in 2026, with rents projected to grow 1–2%.

• Milan office market expected to see modest improvement, with demand for high-quality, green-certified offices.

• Consultants expect continued rental growth in Milan due to supply tightness.

• Two-year energy tariff contract for Singapore portfolio secured, estimated to reduce electricity expenses by 15% per annum from July 2026.