Lendlease Group New CEO inherits work to do on the balance sheet

Research evidence excerpt

Lendlease Group New CEO inherits work to do on the balance sheet

J P M O R G A N Asia Pacific Equity Research

11 June 2026

Lendlease Group Overweight

LLC.AX, LLC AU

New CEO inherits work to do on the balance sheet Price (10 Jun 26):A$2.62

Price Target (Dec-26):A$6.25

LLC’s market update showed a lack of progress / delay of its targeted balance sheet Australia

repair, partly offset by maintained IDC guidance and the appointment of a new

Australian REITs

CEO. FY26 IDC EPS guidance was retained at 28-34¢ps, but gearing is now

expected to be in the mid-30% range as capital recycling proceeds slip into FY27, Richard Jones, CFA AC

a material deterioration versus its target of $3bn of 2H divestments to lower gearing (61-3) 9633-4038

richard.b.jones@jpmorgan.com

towards 15%. We retain our Overweight rating based on value, but the near-term

Adam West

focus remains on transaction execution and timing to repair the balance sheet. (61-2) 9003-8010

• Key positives: 1) FY26 IDC EPS guidance retained at 28-34¢ps, despite adam.west@jpmorgan.com Connor Eldridge transaction timing uncertainty. This is important because IDC is the ongoing

(61-2) 9003-6415

business and underpins the FY27 recovery thesis; 2) Construction recovery connor.eldridge@jpmorgan.com

remains on track, with FY26 new work expected at ~$6.5bn and backlog J.P. Morgan Securities Australia Limited

revenue at ~$8bn, providing good momentum into FY27; 3) Development

pipeline visibility, with >$10bn of balance sheet developments progressing

Half Yearly Forecasts (FYE Jun) including Rozelle Bay and Brisbane Athlete Village; 4) CEO uncertainty

resolved, with Nick O’Neil appointed Group CEO and Managing Director Adj. EPS (A$)

2025A 2026E 2027E

effective 10 September 2026.