Lendlease Global Commercial REIT (JYEU) AI Stock Analysis

• Market Cap: S$1.20B
• Dividend Yield: 7.33%
• Average Volume (3M): 4.75M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.68
• Revenue Growth: -8.34%
• EPS Growth: -22.51%
• Country: SG
• Employees: 69
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 2,446,669,200
• 10 Day Avg. Volume: 6,714,430
• 30 Day Avg. Volume: 4,748,453
• PEG Ratio: -0.27
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.55
• 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: 610.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: S$0.50 ▲(0.00%Upside)

Lendlease Global Commercial REIT's overall stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency, despite high liabilities. The technical analysis presents a neutral outlook with mixed indicators. The stock's valuation is supported by a high dividend yield, although the P/E ratio suggests potential overvaluation. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Financial Stability

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

Rental Performance

Strong rental reversions within Singapore retail leases indicate a positive rent uplift from office leases.

Negative Factors

Interest Rates

A higher-for-longer interest rate environment could prompt a cut in estimates.

Retail Performance

Retail portfolio tenant sales and shopper traffic fell due to a softer retail landscape and weaker trade sectors.

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 derived from its portfolio of commercial properties. This includes leasing retail spaces in shopping centers and office spaces in commercial buildings. The company benefits from long-term lease agreements with tenants, which provide consistent revenue streams. Additionally, Lendlease Global Commercial REIT may also generate income through property management fees and capital appreciation from strategic property acquisitions and developments. Significant partnerships with retail and corporate tenants, as well as a focus on sustainable and innovative property solutions, contribute to its earnings by enhancing property value and tenant retention.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
204.44M	220.91M	205.52M	101.66M	78.18M	56.07M
	Gross Profit
132.16M	149.86M	135.13M	70.87M	53.68M	35.23M
	EBIT
125.83M	143.52M	133.41M	146.27M	1.55M	29.73M
	EBITDA
127.94M	131.73M	131.94M	146.27M	1.55M	29.73M
	Net Income Common Stockholders
76.07M	77.18M	99.57M	141.93M	-1.94M	-8.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.33M	34.12M	54.22M	49.23M	249.26M	83.68M
	Total Assets
3.83B	3.83B	3.83B	3.70B	1.74B	1.56B
	Total Debt
1.56B	1.54B	1.91B	1.45B	545.09M	529.00M
	Net Debt
1.51B	1.50B	1.86B	1.40B	295.83M	445.32M
	Total Liabilities
1.63B	1.62B	2.00B	1.52B	580.32M	563.25M
	Stockholders Equity
2.20B	2.21B	1.83B	2.17B	1.16B	992.25M
Cash Flow		Free Cash Flow
113.58M	121.16M	120.56M	90.75M	65.04M	14.12M
	Operating Cash Flow
113.58M	128.81M	120.72M	95.23M	66.51M	14.12M
	Investing Cash Flow
-3.88M	475.00K	-93.36M	-1.85B	-47.29M	-1.45B
	Financing Cash Flow
-125.28M	-149.26M	-22.21M	1.55B	145.83M	1.52B

Lendlease Global Commercial REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.5 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.50, and below the 200-day MA of 0.53, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, 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	67 Neutral	S$1.20B	20.33	3.16%	7.33%	-8.34%	-22.51%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
SGLMF		$909.71M	17.22	4.09%	7.23%	―	―
AU8U	67 Neutral	S$1.20B	79.35	-0.91%	7.65%	-7.66%	-145.74%
ACV	62 Neutral	S$1.35B	74.47	1.45%	2.93%	7.02%	-79.65%
H13		S$1.32B	12.06	3.01%	2.01%	―	―
Q5T	61 Neutral	S$1.14B	24.35	2.51%	7.36%	0.84%	-64.42%

Lendlease Global Commercial REIT Corporate Events

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.

Lendlease Global Commercial REIT Issues New Units for Management Fees

Lendlease Global Commercial Trust Management Pte. Ltd., as the manager of Lendlease Global Commercial REIT, announced the issuance of 14,544,855 new units in the REIT. This issuance includes 9,132,558 units as payment for management fees, with the units’ value determined by the average trading price on the Singapore Exchange. The issuance reflects the company’s strategy to manage its financial obligations and maintain liquidity, potentially impacting its market positioning and stakeholder interests.

Lendlease Global Commercial REIT to Redeem S$200 Million Perpetual Securities

Lendlease Global Commercial REIT has announced the redemption of S$200 million worth of 5.25% subordinated perpetual securities. This strategic financial move, scheduled for April 11, 2025, underlines the company’s commitment to optimizing its capital structure and potentially enhancing its financial flexibility, which could positively impact stakeholders and its market positioning.