Lendlease Reit posts 12.2% retail rental reversion in Q3 as PLQ Mall acquisition lifts tenant sales

[SINGAPORE] The manager of Lendlease Global Commercial Reit posted a positive retail rental reversion of 12.2 per cent for the third quarter ended Mar 31, 2026, it said in a filing on Monday (May 18).This comes as the real estate investment trust (Reit) completed an acquisition of the remaining 30 per cent stake in PLQ Mall in March, achieving full control of the asset after initially acquiring the other 70 per cent in November 2025.Incorporating four months of contribution from PLQ Mall, the Reit recorded year-to-date growth in tenant sales by 17.6 per cent and a rise in shopper visits by 13.7 per cent from the same period a year ago.Excluding PLQ Mall on a like-for-like basis, tenant sales and shopper visits grew by 2.5 per cent and 5.2 per cent from a year ago, respectively.Portfolio occupancyThe manager said that portfolio occupancy rose to 95.3 per cent from 94.9 per cent in the previous quarter.The Reit’s retail portfolio achieved 99.7 per cent occupancy, with the Reit manager attributing this to strong tenant demand for prime locations and differentiated retail identities. Its retail portfolio comprises the Singapore leasehold properties Jem, PLQ Mall and 313@somerset.Meanwhile, the Reit’s Milan office portfolio, which comprises freehold interest in three Grade A commercial buildings in the Italian city, achieved an occupancy rate of 89.1 per cent.Buildings 1 and 2 in Milan posted a positive rental uplift of 1.5 per cent, the manager said.Capital managementAs at Mar 31, gearing stood at 38.7 per cent, though this would fall to 37.5 per cent on a pro forma basis after the use of preferential offering proceeds for debt repayment. Gross borrowings totalled S$1.74 billion, including the consolidated PLQ Mall loans.The Reit’s weighted average cost of debt remained stable at about 2.9 per cent per annum, with an interest coverage ratio of 1.8 times. Following the reporting period, the manager issued S$120 million in perpetual securities at 4.28 per cent per annum in April to partially refinance S$200 million of perpetual securities due in June.The manager said that there are no debt refinancing risks in FY2026, with around S$611 million in debt facilities available.Chief executive officer Guy Cawthra said the manager remains focused on portfolio optimisation and strengthening the Reit’s capital structure.“Our portfolio remains resilient, underpinned by nearly 100 per cent occupancy in the Singapore retail malls, continued strong visitation, sales and rental reversions,” he said.Units of the Reit closed unchanged at S$0.565 on Monday, before the announcement.