Lendlease Global Commercial (JYEU) Q4 2025 earnings summary

Executive summary

• Divestment of Jem Office for S$462.0 million post-30 June 2025 will reduce leverage to ~35% from 42.6% and strengthen the capital structure, with proceeds mainly used to repay borrowings.

• DPU for 2H FY2025 grew 1.8% YoY to 1.80 cents, supported by robust operational performance in Singapore retail assets and a favorable interest rate outlook.

• Portfolio valuation rose 2.2% YoY to S$3.76 billion, mainly from positive sentiment for Singapore assets.

• Positive retail rental reversion of 10.2% for FY2025 and rental uplift of 1.7% for Milan offices.

• Strategic focus remains on Singapore, with ongoing portfolio optimisation and active capital management.

Financial highlights

• 2H FY2025 gross revenue rose 1.9% YoY to S$102.9 million; net property income up 2.7% YoY to S$73.8 million.

• Full-year FY2025 gross revenue was S$206.5 million (down 6.5% YoY), and net property income S$148.8 million (down 10.0% YoY), impacted by one-off supplementary rent in FY2024.

• Adjusted for supplementary rent, gross revenue and NPI were up 1.1% and 0.1% YoY.

• Distributable income for FY2025 was S$87.6 million, down 4.2% YoY; DPU for FY2025 was 3.60 cents, down 6.9% YoY.

• Property expenses increased by S$2.2 million due to a one-off provision for doubtful debts related to Cathay Cineplexes.

Outlook and guidance

• Favourable interest rate outlook expected to support future distribution performance.

• Continued focus on Singapore market, with plans to explore further acquisition opportunities and non-core asset disposals.

• Ongoing leasing initiatives for Milan Building 3 and targeted marketing to drive retail footfall.

• Completion of Jem office divestment will reduce aggregate leverage from 42.6% to ~35% on a proforma basis, enhancing financial flexibility.