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Buy Rating for Lendlease Global Commercial REIT: Resilient Singapore Properties and Positive Rental Reversions

Buy Rating for Lendlease Global Commercial REIT: Resilient Singapore Properties and Positive Rental Reversions

Analyst Jonathan Koh of UOB Kay Hian maintained a Buy rating on Lendlease Global Commercial REIT (JYEUResearch Report), reducing the price target to S$0.72.

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Jonathan Koh has given his Buy rating due to a combination of factors including the resilient performance of Lendlease Global Commercial REIT’s (LREIT) properties in Singapore and positive rental reversions. Despite a decline in net property income due to lower occupancy at Sky Complex, the REIT maintained high occupancy rates at its Singapore properties, 313@Somerset and Jem, which achieved almost full occupancy and positive rental growth.
Furthermore, the potential for rental uplift from an upcoming rent review at Jem’s office block and the completion of a new multi-functional event space adds to the attractiveness of LREIT. The REIT offers a distribution yield of 7.0%, and the occupancy improvement at Sky Complex with new tenants, alongside the management’s efforts to fill remaining vacancies, supports a positive outlook. These factors collectively justify Jonathan Koh’s Buy rating with a target price of S$0.72.

In another report released on February 5, DBS also maintained a Buy rating on the stock with a S$0.75 price target.

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