lendlease global commercial reit...2020/11/03 · may pose a challenge during lease renewal...

Lendlease Global

Commercial REIT1Q FY2021 Business Update

3 November 2020

Important NoticeThis presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed inforward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these risks, uncertainties andassumptions include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition fromother companies, shifts in customer demands, customers and partners, changes in operating expenses including employee wages, benefits and training,governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.

You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding futureevents. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information or opinions contained in this presentation. Neither Lendlease Global Commercial Trust Management Pte. Ltd. (the “Manager”) norany of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly orindirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation.

The past performance of Lendlease Global Commercial REIT (“LREIT”) is not indicative of future performance. The listing of the units in LREIT (“Units”) onSingapore Exchange Securities Trading Limited (the “SGX-ST”) does not guarantee a liquid market for the Units. The value of the Units and the income derivedfrom them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the Units issubject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchasetheir Units while the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.

Contents

1. Key Event Highlight

2. Portfolio Update

3. Capital Management

4. Update on COVID-19

5. Appendix

KEY EVENT HIGHLIGHT

Lendlease Global Commercial REIT 1Q FY2021 Business Update 5

Key Event Highlight

Acquisition of a stake in Jem via 5% interest in Lendlease Asian Retail Investment Fund 3

• The investment provides LREIT with pre-emptive rights and opportunities to potentially increase its strategic

stake in the Fund (and indirect interest in Jem) over time

• The acquisition was funded fully with cash and is accretive(1) to its distribution per unit (“DPU”)

• Unitholders will benefit from greater income diversification based on the office (35% by NLA) and suburban

retail (65% by NLA) components of Jem

(1) Refer to LREIT’s announcement “Lendlease Global Commercial REIT acquires a stake in Jem via a 5% interest in Lendlease Asian Retail Investment Fund 3”

dated 1 October 2020 for the proforma DPU effect.

PORTFOLIO UPDATE


Portfolio Performance• Maintained a healthy portfolio occupancy of 99.0%

• Only 3% (by NLA) and 12% (by GRI) of the leases will expire by FY2021

• Healthy tenant retention rate of 80.0%(1)

• Disciplined capital management with gearing ratio of 35.6% and interest coverage ratio of

9.2 times(2)

• No near-term refinancing until FY2023

Portfolio

Occupancy

99.0%

Weighted

Average Lease

Expiry (WALE)

9.5 years

Tenant

Retention(by NLA)

80.0%(1)

Key Portfolio Metrics

Gearing

Ratio

35.6%

Weighted

Average Running

Cost of Debt

0.86%

Interest

Coverage Ratio

9.2 times(2)

Capital Management

(1) Refers to 313@somerset. Sky Complex is 100% leased till 2032, excluding tenant’s break option in 2026.

(2) The interest coverage ratio of 9.2 times is in accordance with requirements in its debt agreements, and 4.8 times in accordance with the Property Funds Appendix of the Code on Collective Schemes.

Lendlease Global Commercial REIT 1Q FY2021 Business Update

Portfolio OverviewAs at 30 September 2020

8

Stable Occupancy Rate Diversified Tenant Base

Well-spread Lease Expiry ProfileWALE of 9.5 years (by NLA) and 4.9 years (by GRI)

99.8 99.8 99.5 99.0

50

60

70

80

90

100

As at Dec 2019 As at Mar 2020 As at Jun 2020 As at Sep 2020

%

Broadcasting32%

Food & Beverages

27%

Fashion & Accessories

19%

IT & Telecommunication

4%

Beauty & Health3%

Entertainment3%

Others11%

3%7% 6% 4%

78%

20%24%

10%

35%

FY 2021 FY 2022 FY 2023 FY 2024 Beyond FY2024

By NLA By GRI

12%


Key Statistics

(as at 30 September 2020)

Occupancy 95.6%(1)

WALE1.6 years (by NLA)

1.7 years (by GRI)

Appraised value S$1,008 million

Valuation cap rate 4.25%

NLA 288,318 sq ft

Ownership100% (99-year

leasehold)

313@somerset, Retail Mall in Singapore

Atop Somerset MRT Station and spans across eight retail levels, comprising three basement

levels (B3 to B1) and five levels above ground (L1 to L5)

9

(1) Since 30 September 2020, LREIT has secured a new tenant that would improve the occupancy at 313@somerset to 98.0%.

Tenant Sales and Visitation Continued to Show Signs of Recovery• Tenant sales and visitation recovered approximately 70% and 60%, respectively, compared with pre-

COVID-19 levels. Positive traction is expected to continue with the ease of restrictions by the authorities.

• With travel restrictions remain in place, tenant sales and visitation will continue to be supported by

domestic demand

• Rolled out more marketing campaigns through the Lendlease Plus App to improve sales performance


69.2

49.2

11.7

42.6

0

10

20

30

40

50

60

70

80

Oct-Dec 2019 Jan-Mar 2020 Apr-Jun 2020 Jul-Sep 2020

S$ in

millions

11.4

8.6

2.2

6.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Oct-Dec 2019 Jan-Mar 2020 Apr-Jun 2020 Jul-Sep 2020

Number in

millionsTenant sales Visitation

+3.5 times

QoQ

+2.8 times

QoQ


Marketing and Digital Offering

11

313@somerset, prime retail mall in Singapore

Occupancy Rate Stayed Stable at 95%• Tenant retention rate held steady at 80% during the quarter

• Leasing activities are expected to remain soft due to weak demand against COVID-19 headwinds

• Retail tenants are adopting a wait-and-see approach and are recalibrating their cost structures, which

may pose a challenge during lease renewal


Occupancy rate (%)

99.2 99.2 97.895.6(1)

50

60

70

80

90

100

As at Dec 2019 As at Mar 2020 As at Jun 2020 As at Sep 2020

(1) Since 30 September 2020, LREIT has secured a new tenant that would improve the occupancy at 313@somerset to 98.0%.


Key Statistics

(as at 30 September 2020)

Occupancy 100%

WALE11.6 years

(by NLA and GRI)

Appraised value S$444.5 million(2)

Valuation cap rate 5.25%

NLA 985,967 sq ft

Ownership 100% (freehold)

(1) Sky Italia is a subsidiary of Comcast Corporation company, a global media and technology company.

(2) Conversion of € to S$ is based on the FX rate of 1.601 as at 30 September 2020.

Sky Complex, Grade-A Office in Milan

Comprises of three office buildings and has excellent accessibility via the public transport system.

Fully leased to Sky Italia, owned by Comcast Corporation(1).

13

• Safe distancing management continues at Sky Complex

• To-date, Sky Italia has made all its rental payments in a timely manner with no rental waiver granted

• Change of alternative investment fund manager to Lendlease Italy SGR S.p.A. to align its interest closely

with LREIT’s unitholders


Broadcasting Operations Continue to Remain Resilient

14

CAPITAL MANAGEMENT


As at 30 September 2020 As at 30 June 2020

Gross borrowings S$555.4 million S$545.3 million

Gearing ratio 35.6% 35.1%

Weighted average debt maturity 2.8 years 3.1 years

Weighted average running cost of debt(1) 0.86% p.a. 0.86% p.a.

Interest coverage(2) 9.2 times 9.0 times

Key Financial Indicators

Maintained stable liquidity position to meet financial obligations

(1) Based on drawn debt and excludes amortisation of debt-related transaction costs.

(2) The interest coverage ratio of 9.2 times is in accordance with requirements in its debt agreements, and 4.8 times in accordance with the Property Funds

Appendix of the Code on Collective Schemes.

16


Debt Facilities and Maturity Profile

No refinancing till FY2023

Debt Facilities Loan Amount Remaining Loan Tenor

Singapore dollar

term loan facilityS$99.3 million 2 years

Euro term loan facilityS$456.1 million

(€285.0 million) 3 years

Singapore dollar

revolving credit facilityS$50.0 million 4 years

• Balance sheet flexibility with 100%

of unsecured debt

• Interest rate risk 100% hedged to

fixed rate debt through interest

rate swaps and options

• Euro natural hedge for Sky

Complex via Euro term loan

• Diversity of debt funding across a

syndicate of lenders

• S$148 million(1) of undrawn debt

facilities.

Prudent capital structure

17

99.3

456.1

50.0

0

100

200

300

400

500

FY2021 FY2022 FY2023 FY2024 FY2025

S$m

S$ Term Loan Facility € Term Loan Facility S$ Revolving Credit Facility

Debt maturity profile

(1) Uncommitted undrawn debt facilities comprise of S$50 million and €30 million. Committed undrawn multi-currency revolving credit facility of S$50 million.

UPDATE ON COVID-19


COVID-19: Singapore to resume more activities safely

19

• Operations:

– Continue to remain focused on the health and well-being of LREIT’s tenants and customers

– Maintain its hygiene standards to ensure that 313@somerset provides a safe environment for people

to work, shop and play.

– Footfall and tenant sales are expected to gain positive traction with more people allowed to return to

workplace and the Singapore government opening its borders to tourists from Hong Kong

• Revenue:

– The COVID-19 (Temporary Measures) Act to allow tenants to seek temporary relief from paying rent

and other obligations under their leases from April 2020 to October 2020, has been extended to 19

November 2020.

– While the support from the Singapore government and LREIT have helped to ease immediate

cashflow pressure on its tenants over the last six months, the overall retail sector and leasing

demand remains subdued. These could potentially impact rental during lease renewals and when

entering into new leases.

313@somerset, prime retail mall in Singapore


Key Focus in the Near Term

20

Prudent capital

management

Manage operating

expenses

Enhance portfolio

attractiveness

• Capitalise on the strategic

location of 313@somerset

to improve visitation and

sales performance

• Solidify the position of

313@somerset as the

heart of the Somerset

youth precinct through the

redevelopment of the

Grange Road car park site

into a new lifestyle

destination

• Adopt disciplined

approach to reduce costs

• Defer non-essential

capital expenditure to

conserve cash

• Maintain a strong

balance sheet through

liquidity and capital

management strategies

• Adopt appropriate risk

management strategies

to mitigate market

uncertainties

Thank You

313@SOMERSET, SINGAPORE SKY COMPLEX, MILAN

For enquiries, please contact Ling Bee Lin, Manager Investor Relations

Tel: (65) 6671 7374 / Email: [email protected]

APPENDIX


4Q FY2020 FY2020

Actual

(S$’000)

Forecast(1)

(S$’000)Variance

Actual

(S$’000)

Forecast(1)

(S$’000)Variance

Gross revenue 12,466 21,514 42.1% 55,536 63,910 13.1%

Net property income 7,514 16,092 53.3% 40,289 47,722 15.6%

Distributable income 5,693 15,078 62.2% 35,672 44,671 20.1%

DPU (cents) 0.48 1.28 62.7% 3.05(2) 3.80 19.7%

Recap: Financial Performance for Q4 FY2020 and FY2020

DPU of 1.76 cents declared for 2H FY2020

23

(1) The Manager had, in the interest of good corporate governance, made announcements on 9 April and 20 April 2020 respectively, with regard to the IPO profit and

distribution forecast for the financial year ending 30 June 2020 (“FY2020”) and the profit and distribution projection for the financial year ending 30 June 2021

(“FY2021”), as it may no longer be a fair basis against which the actual performance of LREIT could be compared given current circumstances. For transparency, the

Manager will still provide year-on-year comparisons of LREIT’s financial results for FY2020 against the profit forecast for FY2020 disclosed in LREIT’s prospectus

and FY2021 against LREIT’s financial results for FY2020, in the announcements of LREIT’s full year financial results for FY2020 and FY2021 respectively.

(2) Distribution of 1.29 cents per unit was paid on 16 March 2020.


Gross Revenue

Net Property Income

Recap: Gross Revenue and Net Property Income• Stable revenue from Sky Complex helps to protect income during COVID-19, which has affected the retail

sector in 4Q FY2020

• Rent waivers of up to two months were provided to retail tenants in 4Q FY2020

15.3 15.4

6.2

6.1 6.3

6.3

0

5

10

15

20

25

2Q FY2020 3Q FY2020 4Q FY2020

S$ million

21.4 21.7

12.5

16.2 16.6

7.5

313@somerset

Sky Complex

10.7 10.9

1.8

5.5 5.7

5.7

0

5

10

15

20

2Q FY2020 3Q FY2020 4Q FY2020

S$ million


As at 30 June 2020 As at 31 March 2020

Total assets S$(’000)

1,555,498 1,518,802

Gross borrowingsS$(’000)

545,319 545,227

Total liabilities S$(’000)

563,248 562,553

Net assets attributable to unitholdersS$(’000)

992,250 956,249

Units in issue 1,171,795,224 1,169,480,379

NAV per unit (S$)

0.85 0.82

Recap: Balance Sheet as at 30 June 2020

NAV per unit increased to $0.85

25

1

Lendlease Global Commercial REIT Poised to

Recover Post Circuit-Breaker

• Portfolio occupancy stood at 99.0%

• Weighted average lease expiry (“WALE”) of 9.5 years by net lettable area (“NLA”)

and 4.9 years by gross rental income (“GRI”)

• Approximately 78% of the leases (by NLA) will expire only beyond FY2024

• Gearing ratio of 35.6% with average running cost of debt of 0.86% p.a.

• Weighted interest coverage ratio of 9.2 times1

• Sky Complex continues to remain resilient. Its tenant’s broadcasting business

continues to take place with safe management measures in place.

• Strategic acquisition of a stake in Jem provides income diversification as the office

component is fully leased on a long lease term to the Ministry of National

Development (MND) of Singapore

DBS Bank Ltd. is the Sole Financial Adviser and Issue Manager for the initial public offering of

Lendlease Global Commercial REIT (the “Offering”). DBS Bank Ltd. and Citigroup Global

Markets Singapore Pte. Ltd. were the joint global coordinators, bookrunners and underwriters for

the Offering.

Singapore, 3 November 2020 - Lendlease Global Commercial Trust Management Pte. Ltd. (the

“Manager”), the manager of Lendlease Global Commercial REIT (“LREIT”), today provides its

first quarter FY2021 operations update for the period 1 July 2020 to 30 September 2020. LREIT

has adopted half‐yearly announcement of financial statements with effect from 13 July 2020.

Operations Update

LREIT’s portfolio occupancy stood at 99.0% as at 30 September 2020, with a long WALE of 9.5

years2 by NLA and 4.9 years2 by GRI. Approximately 78% of its leases by NLA will expire only

beyond FY2024.

Tenant sales and footfall at 313@somerset continue to show signs of recovery. During the

quarter, tenant sales and footfall recovered approximately 70% and 60% respectively, compared

to pre-COVID-19 levels. As at 30 September 2020, 313@somerset had maintained a healthy

1 The interest coverage ratio of 9.2 times is in accordance with requirements in its debt agreements and 4.8 times in accordance with the Property Funds Appendix of the Code on Collective Schemes. 2 Assumes that Sky Italia does not exercise its break option in 2026.

2

occupancy rate of approximately 96% and tenant retention rate of 80%. More recently, LREIT has

secured a new tenant that would improve the occupancy to 98.0%.

In the coming quarters, the Manager will focus on capitalising the strategic location of

313@somerset to improve visitation and sales performance. It also aims to solidify the position of

313@somerset as the heart of the Somerset youth precinct through the redevelopment of the

Grange Road car park into a new lifestyle destination. The authorities have ceased operations at

the car park in preparation for the targeted handover of the site to LREIT by December 2020.

Redevelopment works are expected to commence soon after LREIT takes over the site.

On Sky Complex, LREIT’s office asset in Milan, its tenant’s broadcasting business continued to

remain resilient with safe management measures in place. Sky Complex is fully leased to Sky

Italia, an international high-quality tenant, on a long lease term until 20322. The Manager had, on

1 September 2020, appointed Lendlease Italy SGR S.p.A. as the alternative investment fund

manager for Lendlease Global Commercial Italy Fund, which holds Sky Complex, to align its

interest closely with LREIT’s Unitholders.

Milano Santa Giulia district, where Sky Complex is located, has been gaining positive traction and

is an emerging key office location in the Milan Periphery submarket in recent years. The district

is conceived as an area where various facilities, services and land-uses would integrate, connect

and create synergies and as a place where people interact and engage with each other. The

recent developments adjacent to Sky Complex - two grade-A office buildings are about 80% pre-

let to a global engineering company - and infrastructure development of a new metro line that

connects to Linate airport, have contributed to the positive office investment interest in the Milano

Santa Giulia district.

Mr Kelvin Chow, Chief Executive Officer of the Manager, said, “We are fortunate to have fully

leased our three freehold Grade A office buildings, Sky Complex in Milan, with a long lease term

till 2032. Sky Complex is expected to be income resilience and mitigate downside risks during

COVID-19.”

Commenting on LREIT’s prime retail asset in Singapore, Mr Chow added, “The safety of our

shoppers, tenants and employees remains a top priority at Lendlease. The Singapore

government’s move towards allowing more people to return to work and increasing the capacity

for events and dining, will definitely be positive for malls as travelling overseas is still not readily

allowed. We stand ready to work in accordance with local guidelines to drive visitation to

313@somerset. We will also focus on retaining and engaging our tenants as we continue to build

on our healthy and long-lease expiry profile to provide Unitholders with regular and stable returns.”

Strategic acquisition of a stake in Jem, an integrated office and retail development

The acquisition of a stake in Jem through a 5% interest in Lendlease Asian Retail Investment

Fund 3 (the “Fund”) has provided pre-emptive rights and opportunities for LREIT to potentially

increase its strategic stake in the Fund (and indirect interest in Jem) over time.

3

The transaction was completed on 1 October 2020, fully funded with cash and is accretive3 to

LREIT’s distribution per unit (“DPU”). LREIT and its Unitholders will also benefit from further

income diversification based on the office and suburban retail components of Jem. Its office

component, accounts for approximately 35% by NLA, is fully leased to the Ministry of National

Development (MND) of Singapore.

Capital Management

As at 30 September 2020, the Group and LREIT have an uncommitted undrawn debt facility of

S$50 million and €30 million to fund its working capital. As at the date of this announcement,

LREIT has committed undrawn multi-currency revolving credit facility of S$50 million.

Gross borrowings stood at S$555.4 million as at 30 September 2020, equating to a gearing ratio

of 35.6%. The weighted average running cost of debt was 0.86% per annum. LREIT’s weighted

average debt maturity was 2.8 years.

LREIT’s interest coverage ratio was 9.2 times in accordance with requirements in its debt

agreements, and 4.8 times in accordance with the Property Funds Appendix of the Code on

Collective Schemes. The current levels of the interest rate coverage ratios provide ample buffer

from the debt covenant of 2.0 times and minimum regulatory requirement of 2.5 times. The

Manager will continue to be vigilant in maintaining a strong balance sheet and prudent cashflow

management.

LREIT hedged 100.0% of its floating rate debt to fixed rate through interest rate swaps and

options. To mitigate foreign currency risks, it has substantially hedged its projected Euro-

denominated income for FY2021. LREIT has achieved natural hedge against its Euro capital

investment in Sky Complex via a Euro term loan. It has diverse sources of funding from a lending

group of well-rated financial institutions. All of LREIT’s debt is unsecured debt, ensuring that it

has balance sheet flexibility.

COVID-19 Update

The Singapore government had in October 2020 extended the relief period under COVID-19

(Temporary Measures) Act (the “COVID-19 Act”) till 19 November 2020. Under the COVID-19

Act, tenants are able to seek temporary relief from paying rent and other obligations under their

leases from April 2020.

For LREIT’s retail tenants at 313@somerset, the Manager has been engaging with them actively

since the onset of the COVID-19 pandemic. Up to two months of rental relief were provided to

eligible tenants and full savings from property tax rebate were also passed through to eligible

tenants to help them tide over this period. While the support has helped to ease immediate

3 Refer to LREIT’s announcement “Lendlease Global Commercial REIT acquires a stake in Jem via a 5% interest in Lendlease Asian Retail Investment Fund 3” dated 1 October 2020 for the proforma DPU effect.

4

cashflow pressure on LREIT’s tenants over the last six months, the overall retail sector and

leasing demand remains subdued. Retailers remain cautious as they adopt a wait-and-see

approach and are recalibrating their cost structures. Leasing activities are expected to remain

challenging due to the soft demand against COVID-19 headwinds.

In the coming quarters, the Manager expects this cautious stance to put pressure on occupancy

and rental reversion for 313@somerset. It remains committed to provide appropriate assistance

to ensure business continuity of its retail tenants.

On Sky Complex, no rental waiver is granted to Sky Italia and to-date, it has made all its rental

payments in a timely manner.

Market Outlook

Singapore Retail Industry

Based on advance estimates by the Ministry of Trade and Industry, the Singapore economy

contracted by 7.0%4 year-on-year (“YoY”) in the third quarter of 2020, an improvement from the

13.3% contraction in the second quarter. The improved performance came on the back of the

phased re-opening of the economy following the Circuit-Breaker that was implemented between

7 April and 1 June 2020.

Retail sales index continued to decline for six consecutive months in August to 5.7%5 YoY.

However, this was an improvement from the 8.5% YoY decline recorded in July.

Announcements from the Singapore government to move towards Phase Three safe re-opening

in a calibrated and cautious manner have been encouraging. More activities could be anticipated

with further easing of restrictions over the next few months. In addition, the air travel bubble

announced by the Singapore and Hong Kong authorities in October marks a significant positive

development in reopening the borders.

While these are positive signs of recovery, the pace of recovery may not be uniform across the

sectors. Consumer-facing sectors such as tourism and hospitality as well as retail may continue

to remain subdued in the near term. Nevertheless, the retail space market fundamentals continue

to look encouraging with little supply expected in the Orchard Road micro-market over the next

four years6. This will lend support to modest leasing activities in the medium term.

Milan Office Industry

According to the latest research report by CBRE in 2Q 2020, the Milan office market has a total

investment of €1.27 billion in the first half of 2020, accounting for approximately 70% of the entire

4 Ministry of Trade and Industry Singapore’s GDP Contracted by 7.0 Per Cent in the Third Quarter of 2020, 14 October 2020 5 Statistics Singapore, Retail Sales Index and Food & Beverage Services Index – August 2020 6 REALIS / Colliers International Singapore Research

5

office market in Italy. Office vacancy rates in Milan remained stable at 9.9% in 1H 2020, an

improvement of 0.4 percentage points YoY. Prime office rental rate in Milan climbed 3.4% to €600

per square metre per annum.

In the near term, assets such as Sky Complex, LREIT’s office in Milan, let on long leases to high

quality tenants will continue to remain resilient. Sky Complex is fully leased to Sky Italia on a long

lease term till 20322.

Distribution Policy

LREIT intends to make distributions to Unitholders semi-annually and will 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. LREIT intends to distribute 100.0% of its adjusted

net cashflow from operations for the period from the Listing Date to the end of 30 June 2021.

ENDS

About Lendlease Global Commercial REIT

Listed on 2 October 2019, Lendlease Global Commercial REIT (“LREIT”) is established with the principal

investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing

real estate assets located globally, which are used primarily for retail and/or office purposes.

Its initial portfolio comprised a leasehold interest in, 313@somerset, a retail property located in Singapore

and a freehold interest in Sky Complex, which comprises three office buildings located in Milan. The

portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of

S$1.4 billion as at 30 June 2020.

LREIT is managed by Lendlease Global Commercial Trust Management Pte. Ltd., an indirect wholly-owned

subsidiary of Lendlease. Its key objectives are to provide Unitholders with regular and stable distributions,

achieve long-term growth in distribution per unit and net asset value per unit, and maintain an appropriate

capital structure.

6

About the Sponsor - Lendlease Corporation Limited

The Sponsor, Lendlease Corporation Limited, is part of the Lendlease Group7, an international property

and infrastructure group with core expertise in shaping cities and creating strong and connected

communities, with operations in Australia, Asia, Europe and the Americas.

Headquartered in Sydney and established in 1958, the Lendlease Group’s vision is to create the best places

by striving for world leading standards for safety, innovation and sustainability.

The Lendlease Group’s approach is to maintain a portfolio of operations that deliver diversification of

earnings by segment and region, providing a mitigant to property cycles. This approach means that through

cycles the composition of earning from each segment or region may vary.

The Lendlease Group has a development pipeline value of approximately A$113 billion8, core construction

backlog of A$14 billion8 and funds under management of A$36 billion8. The Lendlease Group is a trusted

investment manager to over 150 key capital partners in property and infrastructure investments.

For more information, please contact Investor Relations:

Lendlease Global Commercial Trust Management Pte. Ltd.

Ling Bee Lin

[email protected]

Tel: +65 6671 7374

7 Lendlease Group comprises the Sponsor, Lendlease Trust and their subsidiaries. 8 As at 30 June 2020.

7

Important Notice

This press release is for information purposes only and does not constitute or form part of an offer, invitation

or solicitation of any offer to purchase or subscribe for any securities of Lendlease Global Commercial REIT

(“LREIT”) in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied

upon in connection with, any contract or commitment whatsoever.

The value of units in LREIT (the “Units”) and the income derived from them may fall as well as rise. Units

are not obligations of, deposits in, or guaranteed by Lendlease Global Commercial Trust Management Pte.

Ltd. (the “Manager”), RBC Investor Services Trust Singapore Limited (as trustee of LREIT) or any of their

affiliates.

This press release may contain forward-looking statements that involve risks and uncertainties. Actual

future performance, outcomes and results may differ materially from those expressed in forward-looking

statements as a result of a number of risks, uncertainties and assumptions. Representative examples of

these factors include (without limitation) general industry and economic conditions, interest rate trends, cost

of capital and capital availability, competition from similar developments, shifts in expected levels of

property rental income, changes in operating expenses, (including employee wages, benefits and training

costs), property expenses and governmental and public policy changes and the continued availability of

financing in the amounts and the terms necessary to support future business.

An investment in Units is subject to investment risks, including the possible loss of the principal amount

invested. Holders of Units (“Unitholder”) have no right to request the Manager to redeem or purchase

their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through

trading on Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing of the Units on SGX-ST

does not guarantee a liquid market for the Units.

This press release is not to be distributed or circulated outside of Singapore. Any failure to comply with this

restriction may constitute a violation of United State securities laws or the laws of any other jurisdiction.

The past performance of LREIT is not necessarily indicative of its future performance.

lendlease global commercial reit...2020/11/03 · may pose a challenge during lease renewal...

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