Jem Accounts For 61% Of Lendlease Global Commercial REIT’s Gross Revenue
SINGAPORE – Lendlease Global Commercial REIT’s gross revenue surged by 159 percent year-on-year to S$101.7 million in H1 FY2023, according to Singapore Exchange (SGX) filings published on Tuesday afternoon (7 February, SGT).
The huge growth was primarily contributed by the accretive acquisition of Jem last April and better operating performance at 313@somerset, a prime retail development in Singapore.
By asset, Jem accounted for 61 percent of the real estate investment trust’s (REIT) gross revenue, while the Sky Complex in Milan, Italy and 313@somerset made up 12 percent and 27 percent respectively.
“We are delighted that LREIT has delivered another half-year of good performance… and the prospects of our properties remain healthy,” commented Kelvin Chow, CEO of Lendlease Global Commercial REIT’s manager.
“We are optimistic that LREIT’s retail assets will benefit from China’s reopening to generate higher footfall and tenants’ sales for our retail properties. (Meanwhile), LREIT’s fully leased office assets will continue to enjoy stable cashflow.”
In particular, the REIT’s office portfolio recorded a long weighted average lease expiry (WALE) of 12.4 years by net leasable area (NLA) and 15.3 years by gross rental income (GRI), providing a stable income stream to the Singapore-listed REIT.
Lendlease Global Commercial REIT’s office properties consist of Jem mall’s office component and Sky Complex. Both commercial properties are fully occupied.
The former is a Grade A office building leased by Singapore’s Ministry of National Development (MND) till 2044, while the latter consists of three Grade A office buildings occupied by Sky Italia till 2032. Furthermore, the office rental income of Sky Complex increased by 4 percent in Q1 FY2023 (as of 31 December 2022).
