Why this ASX property stock is rising despite a brutal 40% slide

Lendlease shares lift as attention turns to its next CEO.

It has been a rough year for ASX property shares, but one beaten-down name is finding some support today.

At the time of writing, the Lendlease Group (ASX: LLC) share price is up 2.31% to $3.10.

That gives shareholders some relief, but it does not change the bigger picture. Lendlease shares remain down more than 40% in 2026 and have fallen around 43% over the past year.

The latest buying appears to be tied to speculation around the property group's next Chief Executive.

Let's take a closer look.

Magnifying glass in front of an open newspaper with paper houses.

Image source: Getty Images

CEO search heats up

The move comes after The Australian reported that Lendlease may be close to announcing its next CEO. Current boss Tony Lombardo is due to step down after the company releases its full-year results on 17 August.

According to the report, the search has not been straightforward.

The company has been looking for a new leader at a difficult time. Lendlease has been hit by weak returns, high debt, project writedowns, and investor frustration.

The Australian said Chief Investment Officer Penny Ransom had been viewed as a serious internal contender. However, the latest speculation points to a possible external candidate from Asia.

That would make sense in some ways. Lendlease has been pulling back from international construction, but it still wants to grow its investment platform across Australia and Asia.

A tough job awaits

Whoever gets the top job will takeover a company still trying to fix years of underperformance.

Lendlease reported a statutory loss of $318 million for the first-half of FY26. That included non-cash revaluations and impairments, while segment EBITDA came in at $204 million.

The company has been trying to simplify the business, sell assets, reduce risk, and recycle capital back into areas with better returns.

While there has been some progress, the half-year update showed $1.8 billion raised across Australian and Asian investment mandates.

But investors are still waiting for proof that the turnaround will lead to stronger earnings.

The company also needs to hold on to major funds management relationships, including the Australian Prime Property Funds (APPF) platform. The Australian reported that losing APPF could knock about 9% from net profit, based on analyst estimates.

Foolish Takeaway

Lendlease shares have had a rough run, and the latest CEO talk shows investors are watching the leadership change closely.

A new leader could help steady confidence. But the bigger issue is whether Lendlease can turn asset sales and cost cuts into better earnings.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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