Lendlease Global Commercial REIT (Lendlease REIT) posted distributable income of S$48.6 million for the six months ended Dec 31 2025, up 11.7 per cent year-on-year, as lower interest expense outweighed the impact of asset sales and tenant churn. Gross revenue slipped 1.6 per cent to S$101.9 million, reflecting the absence of contributions from the divested Jem office component and the temporary vacancy following Cathay Cineplexes’ exit.

The trust declared a distribution per unit (DPU) of 1.85 Singapore cents for the first half, 3.1 per cent higher year-on-year. Of this, an advance distribution of 1.33 cents for the period 1 July to 13 November 2025 was paid on 18 December 2025, with the remaining 0.52 cent to be distributed on 30 March 2026.

On a like-for-like basis excluding the Jem office divestment, revenue and net property income inched up 0.6 per cent and 1.1 per cent, respectively. Property operating expenses fell 2.7 per cent, helped by lower maintenance costs at the Milan portfolio. Positive retail rental reversions of 10.4 per cent and 7.2 per cent growth in tenant sales—driven partly by the newly acquired 70 per cent stake in PLQ Mall—underpinned operating performance. Excluding PLQ Mall’s maiden contribution, tenant sales were still 1.1 per cent higher YoY, underscoring resilience in the core Singapore suburban malls Jem and 313@somerset.

The exit of Cathay Cineplexes trimmed income early in the half, but the space was re-leased to Shaw Theatres, whose operations commenced in November 2025. Portfolio committed occupancy stood at about 95 per cent, with retail occupancy at 99.5 per cent and Milan offices at 89.1 per cent.

During the period, Lendlease REIT completed the sale of Jem’s office component and the acquisition of 70 per cent of PLQ Mall, lifting the Singapore share of its S$3.9 billion portfolio to roughly 90 per cent. Net sale proceeds were channelled largely into debt repayment, trimming the gearing ratio to 38.4 per cent from 42.7 per cent three months earlier. Around 72 per cent of borrowings are now hedged at fixed rates, pulling the weighted average cost of debt down to 2.90 per cent per annum, while the interest-coverage ratio improved to 1.8 times.

Other initiatives include the start of retail space reconfiguration at PLQ Mall to lift future rents and the securing of a two-year electricity tariff contract for the Singapore assets from 1 July 2026, expected to cut power costs by about 15 per cent annually.

Chief executive officer Guy Cawthra said the DPU growth highlighted the resilience of the reshaped portfolio and the REIT’s disciplined capital management. He noted that with 90 per cent of assets now in Singapore and gearing reduced to about 38 per cent, the trust is “well positioned” to sustain returns for unitholders amid a stable domestic retail environment.