SINGAPORE (THE BUSINESS TIMES) - Lendlease Global Commercial Reit (Lendlease Reit) on Monday (Aug 8) posted an improved second-half performance, with distribution per unit (DPU) gaining 4.9 per cent to 2.45 cents from 2.34 cents a year ago.
Gross revenue was 68.6 per cent higher at $62.5 million, following the acquisition of Jem in the second half of financial year 2022.
Net property income (NPI) for the real estate investment trust (Reit) grew 72.9 per cent year on year to $45.9 million in the second half, from $26.5 million earlier.
The total amount distributable to unit holders rose 55.6 per cent to $42.9 million in the second half of financial year 2022 from $27.6 million a year ago. The final distribution for the period from March 31 to June 30 will be paid out by Sept 30.
Meanwhile, for the full year ended June 30, DPU was 3.7 per cent higher at 4.85 cents, versus 4.68 cents last year. Distributable income grew 29.7 per cent to $71.5 million. Gross revenue was 29.3 per cent higher at $101.7 million, while NPI rose 32.7 per cent to $75.5 million for the full year.
Commenting on its Milan office assets, the manager said: "A faster recovery from Covid-19 and the increasing demand for spaces in line with ESG (environmental, social and governance) requirements should continue to support investment and leasing activities for the sector."
For its Singapore offices, the manager expected rental growth in the midterm to be supported by the rapid expansion in demand from the technology sector and limited new supply, with vacancy tightening further before the next wave of office supply in 2023.
Its fully leased office assets will continue to benefit and enjoy strong and stable cashflow, it added.
The manager was also confident that the Reit would benefit from an "increased exposure in the suburban retail segment and the high concentration in the essential services trade" as trade and travel-related sectors pick up pace post-Covid-19.
Lendlease Reit units were up 0.5 cent, or 0.6 per cent, at 83.5 cents at 9.49am on Monday.
