Divestment of Jem office is expected to complete by 12 November 2025. Upon completion, approximately S$8.9 million1 gain on disposal will be available for distribution to Unitholders.
Retail portfolio achieved positive rental reversion of 8.9%2.
Portfolio occupancy improved to 95.0%3,4 driven by active leasing efforts at Building 3 in Milan.
Weighted average cost of debt improved to 3.09% p.a. (vs. 3.46% p.a as at 30 June 2025).
Inclusion in iEdge Singapore Next 50 Index enhances global visibility and investor recognition.
Awarded the Regional Sector Leader (Retail Asia Listed) in GRESB 2025 assessment and maintained 5 Star rating.
SINGAPORE, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Lendlease Global Commercial Trust Management Pte. Ltd. (the "Manager"), the manager of Lendlease Global Commercial REIT ("Lendlease REIT"), announces its first quarter business updates for FY2026.
Jem office divestment nears completion
The condition precedent for the divestment of Jem office has been fulfilled, and the transaction is expected to complete by 12 November 2025. Upon completion, the net sales proceeds will be predominately used to repay borrowings, lowering aggregate leverage to approximately 35% on a proforma basis, and terminate associated hedges. A disposal gain of approximately S$8.9 million1 will also be available for distribution to Unitholders.
Operational Performance
As of 30 September 2025, Lendlease REIT's portfolio committed occupancy improved to 95.0%3,4. Its retail portfolio continued to demonstrate strength with an occupancy rate exceeding 99%. Occupancy at the Milan office portfolio increased to 88.5%4 from 81.6% in June 2025, supported by active leasing efforts at Building 3.
The lease expiry profile remained well-distributed, with 7.9%5 of net lettable area ("NLA") and 11.6%5 of gross rental income ("GRI") due for renewal in FY2026. The portfolio continued to reflect a long weighted average lease expiry ("WALE") of approximately 7.0 years6 by NLA and 4.8 years6 by GRI.
Positive retail rental reversion
Lendlease REIT's retail portfolio continued to achieve positive rental reversion of 8.9%2 as at 30 September 2025. Tenant retention was 52.2% mainly due to the exit of Cathay Cineplexes, which has been replaced with Shaw Theatres. Excluding Cathay Cineplexes, tenant retention will be 72.9%.
Visitation continued to improve during the quarter, rising 7.7% year-on-year ("YoY"), supported by targeted initiatives and active engagement efforts. These include campaigns by Singapore government agencies and marketing activations at 313@somerset to drive overall footfall and international interest along Orchard Road. Tenant sales dipped 0.8% YoY7. Excluding the contributions from Cathay Cineplexes8, tenant sales remained largely stable.
Capital Management
During the quarter, S$115.5 million of loans have been refinanced. As at 30 September 2025, Lendlease REIT's gross borrowings were S$1,668.9 million, with a weighted average debt maturity of 2.6 years. The debt portfolio remained fully unsecured, with S$136.1 million in undrawn facilities available to support working capital needs. Sustainability-linked financing represented approximately 93% of total committed debt facilities.
Approximately 68% of borrowings were hedged to ...
