LREIT income rose 33.5% YoY to S$27.6m in H1

Its gross revenue also rose 8.5% YoY to S$37m.

Lendlease Global Commercial REIT (LREIT) posted a 33.5% year-on-year (YoY) increase in distributable income to S$27.6m in the first half of 2021 as revenue rose on the back of the reopening of the economy.

The gross revenue during the period rose 8.5% YoY to S$37m due to lower rental waivers granted to tenants at 313@somerset amidst the “calibrated reopening of the economy, according to a media release. The distribution per unit is at 2.34 cents.

The increase in revenue is also due to the higher revenue from Sky Complex due to the foreign exchange, this resulted in a 10% YoY increase in the net property income to US$26.5m during the period, despite a 5% increase in property operating expenses.

For the fiscal year 2021 ending on 30 June, the distributable income increased 15.3% YoY to S$55.1m, bringing the distribution of 4.68 cents per unit.

LREIT also said that its portfolio occupancy remained high as of 30 June at 99.8%, with a long weighted average lease expiry of 8.81 years by net lettable area and 4.51 years by gross rental income.

Its aggregate portfolio property value as of 30 June was at S$1.4b based on independent appraisals of its investment properties.

According to LREIT, 99.91% of its unitholders voted in favour to increase indirect interest in Jem mall during the general meeting last month saying this would bring the portfolio size up to S$1.8b.

On the other hand, demand for retail space will likely remain “soft,” despite most businesses expecting improvement with the gradual reopening of the economy, LREIT said, noting that there is still uncertainty on the effectiveness of the vaccines against the new COVID-19 variants.

“Demand for retail space will likely remain soft with the continued safe distancing measures being implemented and border closures. In the short term, the weak demand may continue to weigh on rental performance,” it said.