Lendlease shares slide after yesterday’s big jump. Is this ASX 300 stock running out of steam?

Lendlease Group (ASX: LLC) shares are slipping on Friday after the property and investment group released another market update.

At the time of writing, the Lendlease share price is down 2.52% to $3.09.

That comes after a big move on Thursday, when the ASX 300 stock rocketed 8.93% following its previous update.

Even after today’s pullback, Lendlease shares are still up around 10% over the past month.

However, it has been a much tougher year for shareholders. The stock remains down roughly 40% since the start of 2026, which shows how much ground still needs to be recovered.

Here’s what the company told investors today.

Lendlease completes another asset sale

According to the release, Lendlease has completed the portfolio recycling of its UK build-to-rent assets, which will bring in more cash before the end of FY26.

The sale covers 404 residences at Elephant Park in London. These were developed between 2021 and 2024 through Lendlease’s investment partnership with Canada Pension Plan Investments.

With the project itself now largely complete, and the assets fully stabilised, the company has been able to recycle capital from the portfolio.

Management said the transaction is in line with the December 2025 book value and should settle before 30 June.

Once that goes through, Lendlease expects to receive around $260 million in cash proceeds in FY26.

Still a long road back

The sale gives Lendlease more cash to work with, which is a positive. But the size of the share price fall this year shows investors are still looking at the bigger picture.

Lendlease is trying to rebuild confidence after a difficult period, and that will take more than one completed transaction.

The company has been selling assets, recycling capital and trying to simplify the business. Those steps should help, especially if they give management more room to reduce debt.

However, investors will still want to see whether these moves lead to a stronger balance sheet and a cleaner business over time.

Can the recovery continue?

That is the harder question after such a big fall this year.

Lendlease shares have had a better month, and yesterday’s jump showed investors are willing to reward signs of progress.

However, the market isn’t going to get carried away just yet.

The company is still in repair mode. More asset sales should help, especially if they bring in cash, reduce debt, and make the business easier for investors to follow.

Lendlease needs to show that the turnaround is leaving the business in better shape, and fewer unwanted surprises for shareholders.

The post Lendlease shares slide after yesterday’s big jump. Is this ASX 300 stock running out of steam? appeared first on The Motley Fool Australia.

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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.