Lendlease REIT’s retail portfolio recorded a positive rental reversion of 12.2% as of March 31. On a year to date basis, tenant sales and shopper visitation grew by 17.6% y-o-y and 13.7% y-o-y respectively, incorporating four months of contribution from PLQ Mall. On a like for like basis excluding PLQ Mall, tenant sales and visitation also grew by 2.5% y-o-y and 5.2% y-o-y respectively. Tenant retention for the retail portfolio stood at 62.5% as at March 31, primarily due to the exit of Cathay Cineplexes. The space has since been backfilled by Shaw Theatres, maintaining the mall’s entertainment offering. Excluding Cathay Cineplexes, tenant retention would have been 72.9%.
Lendlease REIT completed the acquisition of 30% interest in PLQ Mall on March 26 achieving full ownership of the asset. AEI are currently underway, with completion targeted by end 2026 positioning PLQ Mall to better capture evolving consumer demand and meet retailers’ operational requirements. Upon completion, the reconfigured spaces are expected to support higher rental rates and strengthen Lendlease REIT’s income profile. Following the acquisition, the Manager has also completed the refinancing of the PLQ Mall loans, securing approximately $2 million in annual all in debt cost savings in line with acquisition underwriting.
As of March 31, Lendlease REIT’s portfolio committed occupancy improved to 95.3%. Its retail portfolio achieved 99.7% occupancy while occupancy at the Milan office portfolio stood at 89.1%. Portfolio weighted average lease expiry was 4.7 years by net lettable area (NLA) and 3.7 years by gross rental income (GRI). Approximately 6.3% of the NLA is due for renewal in FY2026, representing 4.6% of the GRI. Contracted electricity tariffs at fixed rate till FY2028 will shield Lendlease REIT from downside risks of potential rate increases impacted by higher oil prices.
