Lendlease Global Commercial REIT: Strong Portfolio and Strategic Initiatives Justify Buy Rating

Lendlease Global Commercial REIT (JYEU – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst on May 8. Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on the stock and has a S$0.69 price target.

Lock Mun Yee has given his Buy rating due to a combination of factors influencing Lendlease Global Commercial REIT’s performance. The REIT’s portfolio occupancy remains strong, particularly in the retail sector, which boasts a high occupancy rate of 99.5%. This stability is complemented by the company’s strategic focus on active asset and capital management to reduce its gearing levels, which currently stand at 38%.
Furthermore, Lendlease Global Commercial REIT is actively pursuing initiatives to sustain income growth, such as leasing efforts in Milan and enhancing retail rents through new tenancies. Despite a challenging retail environment, the REIT has achieved robust rental reversions of 10.4% for the nine months of FY25. The company’s strategic plans, including potential asset divestments, are expected to support its financial health and growth prospects, justifying the Buy rating.

JYEU’s price has also changed moderately for the past six months – from S$0.565 to S$0.505, which is a -10.62% drop .