Lendlease Reit posts 12.2% retail rental reversion in Q3 as PLQ Mall acquisition lifts tenant sales

[SINGAPORE] The manager of Lendlease Global Commercial Reit posted a positive retail rental reversion of 12.2 per cent for the third quarter ended Mar 31, it said in a filing on Monday (May 18).

The real estate investment trust (Reit) in March completed an acquisition of the remaining 30 per cent stake in PLQ Mall, achieving full control of the asset after initially acquiring the other 70 per cent in November 2025.

Incorporating four months of contribution from PLQ Mall, the Reit recorded year-to-date growth of 17.6 per cent in tenant sales and a rise in shopper visits by 13.7 per cent from a year earlier.

Excluding PLQ Mall on a like-for-like basis, tenant sales and shopper visits grew year on year by 2.5 per cent and 5.2 per cent, respectively.

Portfolio occupancy

The manager said that portfolio occupancy rose to 95.3 per cent from 94.9 per cent in the previous quarter.

Lendlease Reit’s retail portfolio achieved 99.7 per cent occupancy; the manager attributed this to strong tenant demand for prime locations and differentiated retail identities.

The retail portfolio comprises the Singapore leasehold properties Jem, PLQ Mall and 313@somerset.

Meanwhile, the Milan office portfolio, which comprises freehold interest in three Grade A commercial buildings in the Italian city, had an occupancy rate of 89.1 per cent. Two of those buildings posted a positive rental uplift of 1.5 per cent, the manager said.

Capital management

As at Mar 31, Lendlease Reit’s gearing stood at 38.7 per cent, though it would have been 37.5 per cent on a pro forma basis after the use of preferential offering proceeds for debt repayment.

Gross borrowings totalled S$1.74 billion, including the consolidated PLQ Mall loans.

The Reit’s weighted average cost of debt was stable at about 2.9 per cent a year, with an interest coverage ratio of 1.8 times.

In April, the manager issued S$120 million in perpetual securities at 4.28 per cent a year to partially refinance S$200 million of perpetual securities due in June.

It said that there are no debt refinancing risks in FY2026, with around S$611 million in debt facilities available.

Guy Cawthra, CEO of the manager, said it remains focused on portfolio optimisation and strengthening the Reit’s capital structure.

“Our portfolio remains resilient, underpinned by nearly 100 per cent occupancy in the Singapore retail malls, continued strong visitation, sales and rental reversions,” he added.

Units of Lendlease Reit closed unchanged at S$0.565 on Monday, before the announcement.