Lendlease Global Commercial REIT (LREIT) has released its full year results. Overall, it is an expected results with:
3.6 SG cent dividendSale of its JEM Office SpaceSlower uptake of Milan Office Tower 3, improvements need to be done to raise it to 80% from current 31%
Expect Higher DPU Next Year
LREIT has divested JEM office space at 3.5% cap rate. This is good because if LREIT uses the equity portion of the sale to redeem its 4.75% interest perpetuals, there is a 1 million dollar increase in distributable income, this is a 2% increase in DPU. Further, LREIT cost of debt is now declining, factoring all these I expect next year DPU to be 3.7 SG cents with special dividend of 1 SG cent post sale of Singapore office complex.
At 57 SG cents, this translate to a 6.5% dividend yield, which is good. I expect further
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