Lendlease Global Commercial REIT (JYEU) AI Stock Analysis

• Market Cap: S$1.35B
• Dividend Yield: 6.48%
• Average Volume (3M): 5.82M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.67
• Revenue Growth: -8.34%
• EPS Growth: -22.51%
• Country: SG
• Employees: 69
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 2,446,669,200
• 10 Day Avg. Volume: 5,429,130
• 30 Day Avg. Volume: 5,820,365
• PEG Ratio: -1.56
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$3.55
• Price Target Upside: 545.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: S$0.50 ▼(-9.09%Downside)

Lendlease Global Commercial REIT's overall stock score is primarily supported by its strong financial performance and high dividend yield. Efficient operational margins and leverage improvements are significant strengths. However, technical indicators suggest caution due to overbought conditions. Valuation metrics are moderate, with risks associated with high total liabilities and valuation.

Positive Factors

Financial Stability

Secured refinancing for the remainder of SGD-denominated debt, indicating financial stability.

Portfolio Performance

LREIT’s portfolio take-up stands at 92.1% underpinned by robust retail occupancy of 99.5%.

Rental Reversions

Rental reversions were a robust +10.4%, indicating strong demand and positive lease negotiations.

Negative Factors

Financial Performance

Gross revenue and NPI declined 13.6% and 19.8% yoy respectively in 1HFY25.

Interest Rates

A higher-for-longer interest rate environment could prompt estimates to be cut.

Retail Performance

Retail portfolio tenant sales and shopper traffic fell 5.1% and 0.2% respectively, impacted by a softer retail landscape.

Lendlease Global Commercial REIT Business Overview & Revenue Model

Company Description

Listed on 2 October 2019, Lendlease Global Commercial REIT ("LREIT") is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes. Its initial portfolio comprises a leasehold interest in, 313@somerset, a retail property located in Singapore and a freehold interest in Sky Complex, which comprises three office buildings located in Milan. The portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of S$1.4 billion as at 30 June 2020. LREIT is managed by Lendlease Global Commercial Trust Management Pte. Ltd., an indirect wholly-owned subsidiary of Lendlease. Its key objectives are to provide Unitholders with regular and stable distributions, achieve long-term growth in distribution per unit and net asset value per unit, and maintain an appropriate capital structure.

How the Company Makes Money

Lendlease Global Commercial REIT makes money primarily through rental income from its portfolio of commercial properties. The company leases its retail and office spaces to a variety of tenants, ranging from multinational corporations to local businesses, under long-term lease agreements. This provides a steady stream of rental revenue. Additionally, the REIT may benefit from strategic asset management activities, such as property enhancements or redevelopments, which can increase property values and, consequently, rental income. Partnerships with local and international property developers and managers can further optimize the earnings potential of its assets. The REIT also engages in capital recycling, where it sells mature assets and reinvests in higher-yielding opportunities, contributing to its overall financial performance.

Lendlease Global Commercial REIT Financial Statement Overview

Summary

Lendlease Global Commercial REIT shows strong financial performance with significant revenue growth and efficient operational margins. Despite a reduction in net income, leverage improvement and solid cash flow management position the company well for future growth. However, high total liabilities and a decrease in net income warrant attention as they may impact financial flexibility.

Income Statement

Lendlease Global Commercial REIT has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin remains robust at approximately 67.8% for 2024, and the net profit margin is healthy at about 34.9%. Despite the decrease in net income from 2023 to 2024, the company maintains a strong EBIT margin of 64.9% and EBITDA margin of 60.8%, indicating efficient core operations.

Balance Sheet

The debt-to-equity ratio improved from 1.05 in 2023 to 0.70 in 2024, reflecting better leverage management. The equity ratio shows stability, at approximately 57.8%, suggesting a solid equity base. However, the company's total liabilities remain high, which could pose risks if cash flows do not sustain.

Cash Flow

The free cash flow growth rate is modest, with a slight increase from 2023 to 2024. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is also healthy, reflecting efficient cash management despite a decrease in net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	220.91M	205.52M	101.66M	78.18M	56.07M
Gross Profit	149.86M	135.13M	70.87M	53.68M	35.23M
EBITDA	131.73M	131.94M	146.27M	1.55M	29.73M
Net Income	77.18M	99.57M	141.93M	-1.94M	-8.62M
Balance Sheet
Total Assets	3.83B	3.83B	3.70B	1.74B	1.56B
Cash, Cash Equivalents and Short-Term Investments	34.12M	54.22M	49.23M	249.26M	83.68M
Total Debt	1.54B	1.91B	1.45B	545.09M	529.00M
Total Liabilities	1.62B	2.00B	1.52B	580.32M	563.25M
Stockholders Equity	2.21B	1.83B	2.17B	1.16B	992.25M
Cash Flow
Free Cash Flow	121.16M	120.56M	90.75M	65.04M	14.12M
Operating Cash Flow	128.81M	120.72M	95.23M	66.51M	14.12M
Investing Cash Flow	475.00K	-93.36M	-1.85B	-47.29M	-1.45B
Financing Cash Flow	-149.26M	-22.21M	1.55B	145.83M	1.52B

Lendlease Global Commercial REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:JYEU, the sentiment is Positive. The current price of 0.55 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.51, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 74.63 is Negative, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:JYEU.

Lendlease Global Commercial REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JYEU	64 Neutral	S$1.35B	22.82	3.16%	6.48%	-8.34%	-22.51%
Sector *	64 Neutral	$6.87B	15.19	-1.99%	6.97%	4.50%	-23.97%
SGLMF	―	$969.07M	16.36	4.09%	22.58%	―	―
ACV	62 Neutral	S$1.35B	74.47	1.45%	3.11%	7.02%	-79.65%
AU8U	57 Neutral	S$1.37B	79.35	-0.91%	7.24%	-7.66%	-145.74%
H13	―	S$1.39B	12.67	3.01%	1.91%	―	―
Q5T	65 Neutral	S$1.23B	26.29	2.51%	6.68%	0.84%	-64.42%

Lendlease Global Commercial REIT Corporate Events

Lendlease Global Commercial REIT Secures Favorable Tax Ruling on Perpetual Securities

Lendlease Global Commercial REIT has announced that it has received a favorable tax ruling from the Inland Revenue Authority of Singapore regarding its issuance of S$120 million 4.75% perpetual securities. This ruling classifies the securities as ‘debt securities’ for tax purposes, allowing holders to benefit from tax concessions and exemptions under Singapore’s Income Tax Act, potentially enhancing the attractiveness of these securities to investors.

The most recent analyst rating on (SG:JYEU) stock is a Hold with a S$6.15 price target. To see the full list of analyst forecasts on Lendlease Global Commercial REIT stock, see the SG:JYEU Stock Forecast page.

Lendlease Global Commercial REIT Achieves Positive Rental Reversions Amid Strategic Enhancements

Lendlease Global Commercial REIT reported positive rental reversions for its retail and office portfolios in Singapore for the third quarter of FY2025, with a 10.4% increase in retail and a 13% uplift in office rentals. Despite a slight decline in visitation and tenant sales due to a softer retail landscape, the company has successfully refinanced S$200 million in perpetual securities at a lower rate and signed new tenants, such as Shaw Theatres at Jem. The REIT is also progressing with asset enhancement and redevelopment projects, including the transformation of a car park into a multifunctional event space, which is expected to enhance its property offerings and stakeholder value.