Lendlease (ASX: LLC): Keyton Sale and Turnaround Test

Aditi Sarkar

29 July 2026 11:26 PM AEST

Lendlease (ASX: LLC): Keyton Sale and Turnaround Test

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Key Highlights

Lendlease Group (ASX: LLC) drew fresh attention on 25 June 2026 when it agreed to sell its remaining 25.1% interest in the Keyton retirement-living platform to existing partner Aware Super for about $525 million.
Kalkine reported the security lifted roughly 4.5% on the day of the announcement.
That move should be read in context: it followed a run to multi-year lows, with the stock reported near A$2.57 in early June and down heavily over the year.
After years of underperformance, management under chief executive Tony Lombardo launched a strategy reset in 2024 aimed at exiting international construction and development, selling non-core assets, cutting costs and rebasing the balance sheet.

Lendlease (ASX: LLC) has banked another asset sale and kept cutting debt, yet a first-half statutory loss and a stubbornly weak share price show the turnaround still has plenty to prove.

Company Overview

Lendlease (ASX: LLC) has banked another asset sale and kept cutting debt, yet a first-half statutory loss and a stubbornly weak share price show the turnaround still has plenty to prove.

Recent Developments

The Keyton divestment lifts total announced and completed capital recycling to roughly $3.4 billion since May 2024, per Kalkine, with proceeds directed to debt reduction and settlement targeted for the first half of FY27. It follows the recycling of the group's stake in The Exchange TRX in Kuala Lumpur (about $400 million) and the sale of Milano Santa Giulia North development rights in Italy — the latter reported by secondary…

Financial and Operational Snapshot

The recovery is not linear. For H1 FY26 (six months to 31 December 2025), Lendlease reported a statutory loss after tax of $318 million, against a $48 million profit in the prior corresponding half, and an operating loss after tax of about $200 million. The IDC segment delivered EBITDA of $204 million, while the CRU segment recorded EBITDA of negative $284 million as assets were marked and sold.

What May Be Watched Next

Potential catalysts include: completion of remaining capital recycling and confirmation that gearing lands near target; a formal start to the $500 million buyback once pre-conditions clear; a resolution of the CEO succession; and evidence that the IDC engine can convert its construction backlog and $48.7 billion funds platform into recurring earnings. Management maintained IDC segment guidance of 28–34 cents per security for FY26 (forward-looking) and pointed to a stronger second…

Key Risks

The risks are equally concrete. Statutory losses persist during the transition; further offshore exits could crystallise additional losses, as the Milan deal illustrated. Asset sales depend on buyer appetite and pricing, and delays would keep gearing elevated. Leadership transition adds execution uncertainty, and the buyback's start remains conditional. The share price, well below levels of a few years ago, signals that many investors want proof before re-rating the stock.

What does Lendlease (ASX do?

Lendlease (ASX: LLC) has banked another asset sale and kept cutting debt, yet a first-half statutory loss and a stubbornly weak share price show the turnaround still has plenty to prove.

What is the latest development?

What financial or operational point stands out?

What may be watched next?

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