Key Highlights from the Private Placement

• Oversubscribed Offer: The private placement was approximately 3 times covered, reflecting robust demand from a diverse mix of investors including new and existing unitholders, long-only funds, real estate specialists, private wealth, and multi-strategy investors.
• Issue Price: The new units under the placement are priced at S\$0.6020 per unit, representing a 5.7% discount to the volume weighted average price (VWAP) of S\$0.6386 per unit for trades done on SGX-ST on 4 November 2025, and a 3.7% discount to the adjusted VWAP of S\$0.6253 per unit.
• Gross Proceeds Raised: The placement will raise approximately S\$280.0 million in gross proceeds.

Use of Proceeds – Strategic Allocations

The manager has detailed its planned use of the S\$280.0 million raised:

• 83.7% (S\$234.3 million): To finance the acquisition of a 70% stake in PLQ Mall via acquiring units in PLQM Trust and shares in the trustee-manager of PLQM Trust. This is a significant portfolio expansion for Lendlease REIT.
• 2.3% (S\$6.5 million): For estimated professional and other fees in connection with the acquisitions and the private placement.
• 14.0% (S\$39.2 million): To pare down existing debt, strengthening the REIT’s balance sheet.
• Balance: Any remaining funds will be used for general corporate and working capital purposes or further debt reduction.

Note for Investors: If the acquisitions do not proceed for any reason, the manager retains the discretion to use the funds for alternative purposes, including repaying existing indebtedness or funding capital expenditures.

Advanced Distribution – Impact on Unitholders

Distribution Policy Update: The manager will declare an advanced distribution for existing units, covering the period from 1 July 2025 up to the day before the new units are issued (expected around 14 November 2025). The estimated quantum is between 1.30 and 1.36 Singapore cents per unit.

• Critical Investor Note: Holders of the new units issued under the private placement will not be entitled to this advanced distribution. This is important for those considering entry at this stage, as only existing unitholders will benefit from the accumulated distributable income up to the new issue date.
• The next regular distribution will be for income earned from the date of new unit issuance to 31 December 2025. Regular semi-annual distributions will resume thereafter.

Status and Trading of New Units

• The new units will rank pari passu with existing units in all respects except entitlement to the advanced distribution.
• Investors should note that Lendlease REIT units are traded on SGX-ST, and no redemption is available directly from the manager; liquidity depends on market trading.

Potential Share Price Sensitivity

• Acquisition of PLQ Mall Stake: The planned acquisition is a material event that could affect future earnings and asset value. The successful raising of funds and intended deployment into PLQ Mall signals growth and portfolio diversification.
• Debt Reduction: Paring down debt with part of the proceeds may improve the REIT’s leverage ratios, potentially making the REIT more attractive to risk-averse investors.
• Advanced Distribution Policy: The exclusion of new units from the advanced distribution may impact near-term yield expectations for new investors.
• Pricing Discount: The issue price is set at a notable discount to market averages, which may affect short-term trading sentiment and price action.

Important Regulatory and Jurisdictional Notices

• The placement and new units are not available to investors in the United States, EEA, UK (except eligible UK investors), Canada, Malaysia, Japan, or Australia.
• Units are prescribed capital markets products and excluded investment products under Singapore regulations.

Investor Guidance

Investors should monitor the REIT’s announcements for updates on fund deployment and any changes to acquisition plans, as these could materially affect future distributions and asset value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should consider their own investment objectives and consult their financial advisors before making any investment decisions. Past performance is not indicative of future returns. The information herein may contain forward-looking statements subject to risks and uncertainties – actual results may differ materially.

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