Lendlease Global Commercial REIT reported net property income of S$152.7 million for the year ended Jun 30, up 2.7 percent year-on-year, as contributions from newly acquired PLQ Mall and firmer rents at its Singapore retail assets offset the divestment of Jem’s office component.

The trust’s gross revenue rose 2.6 percent YoY to S$211.9 million while distribution per unit climbed 3.0 percent to 3.70 cents, comprising an interim payout of 1.85 cents to be distributed on Sept 21.

Singapore operations remained the main growth engine. Gross revenue from the domestic retail portfolio, including a seven-month contribution from PLQ Mall, outweighed a lower take from the Milan office assets. Retail rental reversion turned positive at 11.7 percent, lifting tenant sales 24.0 percent YoY. Portfolio committed occupancy stood at 94.6 percent, with the retail component at 98.5 percent and the Italian offices at 89.1 percent.

Interest expenses moderated after the manager reduced perpetual securities outstanding to S$240 million and refinanced debt at lower coupons. The weighted average cost of debt fell to 2.75 percent and the interest coverage ratio improved to 2.1 times, while gearing was kept at 38.9 percent. Some 68 percent of borrowings are hedged at fixed rates.

Looking ahead, the trust is pursuing organic growth through a 16,000 sq ft reconfiguration at PLQ Mall and the development of a multifunctional event space next to 313@somerset. It also retains S$366 million in undrawn unsecured facilities to fund asset-enhancement or opportunistic acquisitions.

Chief executive officer Guy Cawthra said the higher DPU reflected disciplined capital management and the resilience of the enlarged Singapore retail portfolio. He added that the manager will focus on active asset management and “capital stewardship” to deliver further DPU growth in FY2027 despite macro-economic uncertainty.