Lendlease Group (ASX: LLC) shares are in demand on Thursday after the ASX-listed property group announced another major divestment.
At the time of writing, the Lendlease share price is up 5.84% to $3.08.
That adds to a better recent run for the ASX real estate stock, which has now climbed almost 10% over the past month.
However, shareholders are still sitting on some heavy losses in 2026. Lendlease shares remain down about 40% since the start of the year, showing just how much pressure the stock has been under.
Here's what the company told the market today.
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Lendlease sells Keyton stake
According to the release, Lendlease is selling its remaining interest in the Keyton Retirement Living Trust.
Current co-investor Aware Super will acquire Lendlease's 25.1% interest for $525 million, with the net proceeds to be used to reduce group debt.
The deal is in line with the company's half-year 2026 book value and remains subject to conditions, including regulatory approvals.
Lendlease is targeting completion in the first half of FY27.
Keyton is a retirement living business, and the sale adds another piece to Lendlease's plan to simplify the group and recycle capital out of its non-core assets.
That has been a major focus for Lendlease as it works through its turnaround. Over the past year, sentiment has been weighed down by debt concerns, asset sales, and earnings pressure.
More capital recycling
The latest deal adds to a growing list of moves from Lendlease's Capital Release Unit (CRU).
The company said it has now announced or completed more than $3.4 billion of capital recycling transactions since its May 2024 strategy update.
That includes asset sales across Australian communities, US military housing, international land and inventory, retail and office interests, and other holdings.
Management said the "focus remains on balancing value realisation with speed of execution."
Can the recovery continue?
Today's gain is a welcome change for Lendlease shareholders, but it doesn't erase what has been a brutal year.
The stock is still down around 40% since the start of 2026, so the market is unlikely to get carried away on one deal.
The $525 million Keyton sale gives Lendlease more cash to reduce debt and keeps its capital recycling plan moving.
But there's still a lot of work to do. The company needs to keep completing asset sales, bring debt down further, and avoid selling assets too cheaply.
Until that happens, the Lendlease share price could move sideways from here.
