Lendlease Global Commercial REIT, commonly known as LREIT, recently saw its per-unit price drop to S$0.485 as of March 6, 2025. This is a significant decline, even lower than what we witnessed during the COVID-19 period or last year’s severe price slump among Singapore REITs. Indeed, this marks an unprecedented five-year low for LREIT. Noticing this, I decided to seize the opportunity last week and acquired 10,000 units at that price, following a thorough evaluation of various factors and conducting a detailed risk assessment.
Firstly, let’s talk about the challenges LREIT is facing. The REIT has been struggling with high financing costs, which have severely impacted its financial performance. Moreover, things took a turn for the worse with the early termination of a major tenant at its Sky Complex commercial office in Milan. This vacated space poses a significant risk, especially if LREIT’s leasing team cannot promptly secure new tenants to fill the gap.
