Lendlease Global Commercial REIT - UOB Kay Hian 2019-10-01: IPO Factsheet

LENDLEASE GLOBAL COMMERCIAL REIT (SGX:JYEU) | SGinvestors.io LENDLEASE GLOBAL COMMERCIAL REIT (SGX:JYEU)

Lendlease Global Commercial REIT - IPO Factsheet


LENDLEASE GLOBAL COMMERCIAL REIT ISSUE STATISTICS

  • Offer Size: 387.475m new units.
  • Public Tranche: 22.727m units.
  • Placement Tranche: 364.748m units.
  • Price: S$0.88.
  • NAV per unit: S$0.8134.
  • Market Cap (post-IPO): S$1,027.8m.
  • Open: 25 Sep 19.
  • Close: 30 Sep 19, 12.00 noon.
  • Trading: 2 Oct 19, 2.00 pm (on “ready” basis).
  • Lead Manager: DBS, Citibank.



LENDLEASE GLOBAL COMMERCIAL REIT BACKGROUND



LENDLEASE GLOBAL COMMERCIAL REIT BUSINESS STRATEGY AND FUTURE PLANS

  • Proactive management of property portfolio to optimise cash flow and value of properties. Management will also look to drive organic growth, encourage strong relationships with tenants, implement asset management strategies and facilitate property enhancement opportunities.
  • Portfolio growth through the acquisition of attractive income-producing properties that fit within the REIT’s investment strategy.
  • Prudent capital management by employing an appropriate mix of debt and equity in financing acquisitions as well as utilising hedging strategies.


LENDLEASE GLOBAL COMMERCIAL REIT COMPETITIVE STRENGTHS

  • Strong sponsor with a global presence and exposure to commercial markets in gateway cities. The Lendlease Group is one of the largest developers in the world, with a global development pipeline value approaching A$100b.
  • Assets with excellent operating metrics. Lendlease Global Commercial REIT's IPO portfolio has a WALE of 4.9 years by gross rental income, as well as a consistently high committed occupancy rate of at least 99.0% since 2016.
  • Resilient and high quality commercial assets in IPO portfolio, including a prime retail mall in Singapore and a Grade-A offices in Milan, Italy


LENDLEASE GLOBAL COMMERCIAL REIT KEY RISKS

  • Uncertain economic and real estate market conditions, including increased competition, political and constitutional instability as well as fiscal and other governmental policies may affect the performance of the REIT. A downturn in the economies of any related markets may result in reduced demand for office and/or retail space.
  • Exchange rate fluctuations and changes in forex regulations may affect the NAV of units as well as projected yield and yield growth.
  • Properties and future properties to be acquired may require significant capex periodically.
  • Renovation or redevelopment works or physical damage to properties may disrupt operations and collection of rental income.


LENDLEASE GLOBAL COMMERCIAL REIT DIVIDEND POLICY

  • Lendlease Global Commercial REIT’s distribution policy is to distribute 100.0% of adjusted net cashflow from operations for the period from the listing date to the end of Projection Year 2021. Thereafter, Lendlease Global Commercial REIT intends to distribute at least 90.0% of its adjusted net cashflow from operations for each financial year. The actual level of distribution will be determined at the manager’s discretion.
  • DPU (S cents)
    • FY20 Forecast (2 Oct to 30 Jun 20) 3.82.
    • FY21 Forecast 5.29.
  • Yield (%)
    • FY20 Forecast (Annualised) 5.8.
    • FY21 Forecast 6.0.





Singapore Research UOB Kay Hian Research | https://research.uobkayhian.com/ 2019-10-01
SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998 SAME 99998



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