Lendlease Global Commercial (JYEU) Q4 2024 earnings summary

Executive summary

• Gross revenue for FY2024 rose 7.8% year-over-year to S$220.9 million, and net property income increased 7.4% to S$165.3 million, driven by strong Singapore portfolio performance and upfront supplementary rent from Sky Complex lease restructuring.

• Distributable income and distribution per unit (DPU) declined 15.6% and 17.7% year-over-year, respectively, due to higher borrowing costs, upfront supplementary rent recognition, and a larger unit base.

• Portfolio valuation increased 0.9% year-over-year to S$3.68 billion, mainly supported by the Singapore portfolio.

Financial highlights

• Gross revenue: S$220.9 million (+7.8% YoY); Net property income: S$165.3 million (+7.4% YoY).

• Distributable income: S$91.4 million (-15.6% YoY); DPU: 3.87 cents (-17.7% YoY).

• Excluding supplementary rent, gross revenue and NPI were up 3.2% and 1.3% YoY, respectively.

• Property expenses rose S$4.7 million to S$55.6 million, mainly from higher property tax and utilities in Singapore.

• 2H FY2024 gross revenue and NPI declined 2.1% and 7.2% YoY due to the absence of rental income from Sky Complex Building 3.

Outlook and guidance

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

• Management continues to see leasing interest for the repositioned Sky Complex Building 3 in Milan.

• Continued progress towards ESG targets and investments in asset enhancement and acquisition growth.