Lendlease Group Model update

Research evidence excerpt

Lendlease Group Model update

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

11 June 2026

Lendlease Group Overweight

LLC.AX, LLC AU

Model update Price (11 Jun 26):A$2.74

▼Price Target (Dec-26):A$5.00

Prior (Dec-26):A$6.25

We have updated our forecasts following LLC’s market update – see our first take

note. We have incorporated last week’s announced ~$175m operating loss after tax Australia

from the sale of its Milano Santa Giulia (MSG) mixed-use development in Milan, Australian REITs

Italy. As part of LLC’s market update, it noted it expects gearing to remain elevated AC Richard Jones, CFA

in the mid-30% range at its Jun-26 result due to the delayed timing of planned (61-3) 9633-4038

divestments. Given the balance sheet positioning and new management, we have richard.b.jones@jpmorgan.com

removed our previously assumed $500m buyback from our forecasts (in FY27), Adam West

and will re-assess this once further balance sheet repair has taken place. We lower (61-2) 9003-8010

our Dec-26 Price Target $1.25 to $5.00 per share, reflecting the loss on MSG, the adam.west@jpmorgan.com

earnings impact from the delay in assumed sales, the removal of the buyback and Connor Eldridge

incorporating the higher gearing level in our discount rate. We retain our (61-2) 9003-6415

Overweight recommendation, still seeing substantial upside in the share price, connor.eldridge@jpmorgan.com

predicated on execution of divestments, predominantly out of CRU, and repairing J.P. Morgan Securities Australia Limited

the balance sheet in FY27.

Key Changes (FYE Jun)

• Earnings changes: All of our earnings changes are in CRU from deferring sale Adj. EPS - 26E (A$) (0.130)Prev (0.462)-256.0%Cur Δ

timing (plus the MSG loss) as well as the balance sheet impact of the delayed Adj.