What's next for Lendlease shares?
Analysts are expecting the real estate investment trust’s shares to rally 19% in the next 12 months.
- Lendlease Global Commercial REIT(SGX: JYEU) share price closed at S$0.82 on Wednesday (10 August 2022)
- The stock declined as much as 3.6% following its latest results
- CIMB analysts have maintained an ‘add’ rating on LREIT
- Keen to trade LREIT shares? Open an account with us to start today.
How did Lendlease fare in 2022?
Lendlease Global Commercial REIT’s (LREIT) distributable income rose 55.6% year-on-year (YoY) to S$42.9 million in the second half of FY2022 (2H FY2022). This translated to a distribution of S$0.0245 per unit.
For FY2022, distributable income increased 29.7% YoY to S$71.5 million, equivalent to a distribution per unit (DPU) of S$0.0485.
Gross revenue for 2H FY2022 was S$62.5 million, up 68.6% from a year ago. This was mainly attributed to the accretive acquisition of Jem and better operating performance at 313@somerset.
This led to a higher net property income (NPI) of S$45.9 million for 2H FY2022. For FY2022, gross revenue and NPI increased 29.3% and 32.7% YoY to S$101.7 million and S$75.5 million respectively.
Property expenses in FY2022 amounted to S$26.2 million, 20.3% higher compared with FY2021. This was primarily due to the acquisition of Jem in FY2022.
LREIT stock price: what’s the latest forecast?
The large cap stock has been in a slight uptrend for the last one month, increasing roughly 3% since 12 July 2022. However, it is down by 6% on a year-to-date basis.
In terms of stock outlook, LREIT shares have an average price target of S$0.97 and rating of ‘outperform’, based on the latest SGX StockFacts consensus data.
The price target equates to an upside potential of 19% from the stock’s last traded price of S$0.82.
The latest investment thesis came from CIMB analyst Lock Mun Yee on 9 August 2022. Lock reiterated an ‘add’ call on the stock alongside a lower price target of S$1.02 (from S$1.05).
The analyst’s DPU estimates for LREIT for FY2023 and FY2024 were lowered by 3.9% to 4.1% as ‘higher revenue assumptions were wiped out by higher borrowing assumptions’.
‘We expect organic growth on the back of positive reversions as well as the unlocking of ~10,000 square foot or 3.5% of untapped gross floor area at 313@Somerset,’ Lock added.
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