Key Highlights
Lower weighted average cost of debt1 at 2.90% per annum while the interest coverage ratio ("ICR")2 increased to 1.8 times3.
Gearing ratio lowered to 38.4%4 in 1H FY2026.
Positive retail rental reversion of 10.4%5 achieved in 1H FY2026.
Tenant sales grew 7.2%6 year-to-date. Excluding the inclusion of PLQ Mall, tenant sales recorded a 1.1% increase, reflecting steady underlying performance.
Reconfiguration of retail spaces at PLQ Mall has commenced, with the enhancements expected to drive an uplift in rental rates.
Secured a two‑year energy tariff contract for the Singapore portfolio at a lower rate, effective 1 July 2026, with estimated reduction in electricity expenses by approximately 15% per annum.
SINGAPORE, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Lendlease Global Commercial Trust Management Pte. Ltd. (the "Manager"), the manager of Lendlease Global Commercial REIT ("Lendlease REIT"), announces its first-half financial results for FY2026.
Completed the Jem office divestment and acquisition of a 70% interest in PLQ Mall
Lendlease REIT has completed the divestment of Jem office and acquisition of a 70% interest in PLQ Mall in November 2025. Following these transactions, approximately 90% of the portfolio value is anchored in Singapore, with 63% in the resilient suburban retail segment. This outlines Lendlease REIT's active portfolio optimisation strategy, strengthening its enlarged retail portfolio to capitalise on future growth drivers and deliver steady, long‑term income growth for its Unitholders.
Financial Performance
1H FY2026 gross revenue and net property income declined 1.6% YoY and 1.2% YoY to S$101.9 million and S$74.0 million, respectively. This was largely attributed to the divestment of Jem office and revenue impact from the exit of Cathay Cineplexes in 1H FY2026, which has been replaced by Shaw Theatres (operations commenced in November 2025). On a like-for-like basis, excluding the Jem office divestment, gross revenue and net property income are higher by 0.6% and 1.1%, respectively.
Property operating expenses improved by 2.7% YoY mainly due to lower maintenance requirements at the Milan assets.
Lendlease REIT's distributable income grew 11.7% YoY to S$48.6 million in 1H FY2026, translating to a distribution of 1.85 cents per unit. The increase in distributable income was driven by lower interest expense and perpetual securities coupons, partially offset by the divestment of Jem office and vacancy from the Cathay Cineplexes lease termination. As at 31 December 2025, the total number of units increased to 2,961,010,783 from 2,446,669,290 as at 30 June 2025, mainly due to a private placement undertaken to fund the acquisition of a 70% interest in PLQ Mall.
The approximately S$8.9 million gain from the divestment of Jem office remains available for future distribution, with deployment to be aligned with the strategy of delivering stable and sustainable growth in DPU over the long term.
Of the distribution of 1.85 cents per unit for 1H FY2026, an advance distribution of 1.33 cents per unit for the period from 1 July 2025 to 13 November 2025 was paid on 18 December 2025. The remaining DPU payable for the period is 0.52 cents. Unitholders can expect to receive the distribution on 30 March 2026.
Capital Management
Following completion of the Jem office divestment, the net sales proceeds were utilised ...
