Lendlease REIT occupancy at 99.7% in Q1 FY23

Its retail portfolio’s occupancy was at 99.3%.

Lendlease Global Commercial REIT’s (LREIT)  occupancy in the first quarter of the financial year 2023 remained high at 99.7% with a long weighted average lease expiry (WALE) of 8.5 years by net lettable area (NLA).

In a statement, LREIT’s manager said the company’s portfolio occupancy has a 5.5-year gross rental income (GRI) and de-risked leases expiring for the year to 8% by NLA and 14.5% by GRI during the quarter.

LREIT’s retail portfolio also managed a high occupancy rate of 99.3% driven by “healthy leasing momentum” and the manager’s leasing strategy focusing on curating unique food & beverage and retail options.

READ MORE: Lendlease REIT net property income up 32.7% YoY in FY22

It also recorded a positive rental revision of around 1% with a realty tenant retention rate of about 69% for its retail portfolio. Its tenant sales also continued to surpass pre-pandemic average levels.

The Manager is aiming to utilise the untapped gross floor area of 10,200 sqft from the URA Master Plan 2019 in 313@somerset and create new value for LREIT’s unitholders in the near term. 

It is continuously looking to convert spaces into leasable units for additional revenue even if there is no additional plot ratio granted for Jem.

For Jem, while there is no additional plot ratio granted, the Manager is constantly looking to convert spaces into leasable units to generate additional revenue. 

Meanwhile, its office portfolio has a long WALE of 12.7 years by NLA and 15.5 years by GRI which “will ensure a stable income stream for LREIT’s unitholders.” 

LREIT’s office rental escalation also saw around a 4% increase during the period which will provide stable cashflows to unitholders.