19 January 2024
Under the Radar: Lendlease Reit’s manager on its capitalisation rate post-pandemic, its gearing ratio and reduction of tenant concentration risk
Today we’re going to deep dive into an all-time favourite – S-Reits that is!
Our guest is the Lendlease Global Commercial Trust Management, the manager of Lendlease Global Commercial Trust Management or Lendlease Reit.
Listed on the Singapore Exchange in 2019, Lendlease Reit was established with the principal investment strategy of investing in a diversified portfolio of stabilised income producing real assets used primarily for retail and office purposes.
Its portfolio properties comprise leasehold properties in Singapore including Jem, 313@somerset as well as a freehold interest in Sky Complex in Milan, Italy.
The buildings have a total net lettable area of about 2.1 million square feet, with an appraised value of S$3.65 billion as at the end of June 2023.
But what is the capitalisation rate (or the ratio between the net operating income to market value of its properties) of these properties with the global economy reeling from the effects of the COVID-19 pandemic and with working from home becoming a trend of the future?
And with interest rates remaining at elevated levels, how does Lendlease Reit assess its gearing right now? What is the outlook ahead with the US Federal Reserve set to cut interest rates as early as in the second quarter of the year?
On Under the Radar, The Evening Runway’s finance presenter Chua Tian Tian posed these questions to Kelvin Chow, CEO, Lendlease Global Commercial Trust Management.

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