Lendlease Global Commercial Reit reports 14.3% lower H1 DPU of S$0.018

LENDLEASE Global Commercial Real Estate Investment Trust’s (Lendlease Reit) distribution per unit (DPU) fell 14.3 per cent to S$0.018 for its first half ended Dec 31, 2024, from S$0.021 in the corresponding period in the year before.

The lower DPU was driven by higher finance costs, lower net property income (NPI), as well as an enlarged unit base, the manager of the Reit in a bourse filing on Monday (Feb 3).

Revenue was down 13.6 per cent at S$103.6 million for the half-year period, from S$119.9 million in the year-ago period.

This was due to the absence of supplementary rent from Building 3 by Sky, an office building in Milan, Italy, due to a lease restructuring exercise. The supplementary rent was received and recognised upfront in December 2023.

NPI dropped 19.8 per cent on the year to S$74.9 million for the half year, from S$93.4 million previously.

On a pro forma basis after adjusting for the supplementary rent, revenue for the half-year period was up 0.4 per cent, while NPI was down 2.2 per cent year on year, said the Reit manager.

Distributable income declined 11.8 per cent year on year to S$43.5 million, from S$49.3 million in the year-ago period.

The distribution will be paid out on Mar 28, after books closure on Feb 11.

Units of Lendlease Reit closed 1.8 per cent or S$0.01 lower at S$0.545 on Monday, before the announcement.

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