Broker Name: CGS International
Date of Report: February 19, 2026
Excerpt from CGS International report.
Report Summary
- Lendlease Global Commercial REIT (LREIT) reported a stable 1HFY26 performance with a DPU of 1.85 Scts, in line with forecasts, and strong Singapore retail rental reversions of +10.4%.
- Portfolio occupancy remains healthy at 95%, with Singapore retail occupancy at 99.5% and a slight improvement in Milan office occupancy.
- Financials show lower interest costs and improved interest coverage, with gearing at 38.4% and average debt cost at 2.9%.
- Management secured a new energy contract for the Singapore portfolio, expected to deliver 15% annual electricity cost savings from FY27.
- LREIT continues ESG progress, maintaining high ratings and achieving Net Zero Carbon (Scopes 1 and 2) two years ahead of schedule.
- No changes to the Add rating and target price of S\$0.69, underpinned by an attractive FY26F dividend yield of 5.8% and growth opportunities post-Jem office divestment.
- Potential catalysts include faster leasing of Milan’s Sky Complex Building 3 and further credit metric improvements; downside risks are weaker rental reversions and consumer slowdown.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com.sg
