Breaking Down Lendlease REIT Debt Profile A Layman Like Myself

By Turtle Investor • June 22, 2023

Using information available as of the 3Q FY2023 business update that is provided by Lendlease REIT, I decided to take a closer look at Lendlease REIT Debt Profile in this blog post to decide whether it is a suitable investment for me. Yay to more talking to myself. Quick Summary

SGD $400m of perpetual securities issued were not reflected in the gearing ratio
Total borrowings is SGD $1,854m vs SGD $1,454m (gearing ratio ~50%) if we were to include perpetual securities
Adjusted interest coverage ratio is 2.0x i.e. lower 2.5x MAS requirement to go beyond the 45% leverage limit
Sustainable financing generates interest savings for unitholders if Lendlease REIT is able to meet performance targets

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