Analysts from Maybank Securities and PhillipCapital have maintained their respective " buy" calls and target prices on LHN following its 1HFYF2025 numbers that were in line with expectations.

 

For the six months to March 31, LHN reported earnings of $14.1 million, up 8.8% y-o-y, while revenue was up 29.4% y-o-y to $70.6 million, driven by contribution from its space optimisation business.

 

Its property development business segment helped with maiden revenue of $12.1 million, with the sale of some strata units in a factory at 55 Tuas South Avenue 1.

 

LHN' s commercial properties, on the other hand, suffered a 47.1% y-o-y drop in revenue.

 

As expected, the company is maintaining an interim dividend payout of one cent per share, in line with its policy of distributing at least 30% of its adjusted earnings.

 

If non-recurring items were excluded, LHN would be reporting a core net profit of $15.4 million, which is within the expectations of Maybank Securities' Eric Ong.

 

" Moving forward, management remains cautiously optimistic on the demand for short-term lodging in Singapore, which should continue to support stable rental and occupancy rates for the rest of 2025," says Ong, whose target price remains at 55 cents.

 

Paul Chew of PhillipCapital is similarly bullish about LHN, partly due to the proposed spinoff listing of its co-living business Coliwoo.

 

Chew, noting that LHN is trading at a discount of 20% off its book value of 63.4 cents, believes that the spin-off will " better realise" its underlying value.

 

" The additional capital and asset-light model can accelerate the growth of the franchise, especially overseas. If the listing is via the issuance of new shares, there is unlikely to be a special dividend by LHN," says Chew, who has kept his " buy" call.

 

" However, the plan to dispose of and lease back three freehold properties, we believe, is an avenue for special dividends," says Chew, who has raised his target price to 61 cents from 56 cents by applying a higher valuation multiple of 7x earnings from 6.5x, which is still a discount compared to other hospitality groups.

 

" The growth outlook remains intact for Coliwoo, with a pipeline of 428 additional keys (or 16%) under renovation. This excludes any future contracts secured for healthcare accommodation," adds Chew.

Increase primarily attributed to revenue contribution from the property development business

 

[SINGAPORE] LHN&rsquo s net profit for the first half ended March 31 rose 8.8 per cent to S$14.1 million from S$13 million in the year ago period.

 

The real estate management services group&rsquo s revenue increased 29.4 per cent to S$70.6 million in H1, from S$54.5 million the year before. 

 

The increase was primarily attributed to revenue contribution from the property development business as well as an increase in revenue from the co-living business, LHN said on Thursday (May 15).

 

Kelvin Lim, executive chairman and group managing director of LHN, said: &ldquo The addition of (the) property development segment as a new revenue stream has significantly enhanced our financial resilience and growth potential amid the ongoing geopolitical uncertainties and a dynamic economic environment. 

 

&ldquo Additionally, the ongoing growth and strong performance of our co-living business, Coliwoo, continue to provide a reliable and expanding revenue base.&rdquo  

 

Earnings per share stood at S$0.0338, a 6.6 per cent increase from S$0.0317 a year ago.

 

This year, LHN recorded its maiden revenue contribution from its property development business from the sale of certain strata-titled units at 55 Tuas South Avenue 1, a nine-storey industrial development property. 

 

The group is also redeveloping property in Geylang into a strata-titled commercial building for retail and office use, with an estimated saleable area of over 28,000 sq ft. The project at Geylang will be LHN&rsquo s second property development project.

 

Revenue from the cleaning and related services and carpark management businesses rose 12.6 per cent to S$19.4 million in H1 2025 from S$17.2 million a year ago, LHN said.

 

&ldquo The profit improvement was mainly driven by new integrated facilities management contracts and car park management projects secured, coupled with the cessation of less efficient car park management projects in Hong Kong.&rdquo  

 

Revenue from LHN&rsquo s energy business declined by 6.9 per cent to S$768,000 in H1.

 

On Thursday, LHN said that the group remains cautiously optimistic on the demand for both short-term and long-term rentals for 2025.

 

Private residential rents are projected to rise between 2 and 4 per cent in 2025 due to shrinking supply and improved economic conditions. 

 

The Singapore Tourism Board is expecting international visitor arrivals to reach between 17 million and 18.5 million in 2025, an increase from 16.5 million in 2024, driven by new attractions such as Minion Land, Rainforest Wild Asia in Mandai, a robust meetings, incentives, conferences, and exhibitions (Mice) events calendar and improved air connectivity. 

 

LHN said: &ldquo The growing number of tourists will contribute to healthy demand for short-term lodging.&rdquo

 

The group declared an interim dividend of S$0.01, unchanged from a year ago. 

 

 

 

LHN results out

LHN expects to continue holding a majority stake in Coliwoo, which will continue to be consolidated with the group

 

[SINGAPORE] LHN Group intends to bring its co-living business, Coliwoo Group, public on the Singapore Exchange.

 

The real estate management services group, dual-listed on both the mainboards of SGX and Hong Kong Stock Exchange (HKEX), has submitted applications to both exchanges for the proposed spin-off and separate listing of the shares of Coliwoo on the mainboard of SGX.

 

In a bourse filing released after the market closed on Tuesday (Apr 15), LNH said that SGX&rsquo s regulatory body agrees that the proposed spin-off did not amount to a chain listing, subject to compliance with the local bourse&rsquo s listing requirements.

 

A chain listing refers to a situation in which a subsidiary or parent company of an existing listed issuer is not being considered suitable for listing if the assets and operations of the applicant are substantially the same as those of the existing issuer.

 

LHN said: &ldquo The SGX-ST (Singapore Exchange Securities Trading) reserves the right to amend and/or vary the SGX-ST concurrence and such decision is subject to changes in the SGX-ST&rsquo s policies.

 

&ldquo As of the time of this announcement, the HKEX is still considering the company&rsquo s application, and the Coliwoo Group has not submitted any formal listing application to any relevant regulatory authorities&rdquo . The group added that the proposal was at an early stage, and that there is no assurance that the plan would materialise.

 

LHN noted that Coliwoo, as its indirect wholly-owned subsidiary, was incorporated in Singapore on Dec 24, 2024, and would hold the co-living business of the group upon the completion of an internal restructuring exercise.

 

The group has four business segments in the areas of:

 

Space optimisation

 

Property development

 

Facilities management and

 

Energy

 

The co-living business falls under space optimisation business, independent of other three business segments.

 

LHN making the most of shared spaces

LHN expects to continue holding a majority shareholding in Coliwoo, which will continue to be consolidated with the group, assuming the proposed spin-off is successful.

Real estate management services company LHN Group added 45 new keys in a Balestier property and 29 new facilities management contracts, according to its 1QFY2025 business update. 

 

The group manages 2,915 keys across its Coliwoo co-living projects in Singapore and 85 SOHO projects overseas as at Dec 31, 2024 compared to the 2,895 keys reported in the quarter prior. 

 

As at end Dec 2024, the group&rsquo s overall occupancy rates were at 95%. 

 

For its facilities management business (FM), the group secured 29 new contracts and re-tendered 75 existing FM contracts. 

 

The group&rsquo s carpark projects and lots stood at 100 car parks with over 27,000 lots in Singapore, and over 700 lots in Hong Kong as at Dec 31, 2024. The lots in Hong Kong are expected to cease operations upon the lease expiry by April 2025. 

 

For its energy business, the group maintained its total solar energy capacity at 8.8 megawatt (MW). It has a total of 19 electric vehicle (EV) charging points as at Dec 31, 2024. 

 

On its outlook, the group entered a joint venture with two partners on Feb 14 to acquire and redevelop property in Geylang, with a land area of 1,179.29 sqm. The building will be transformed into a strata-titled commercial building for retail and office use. 

 

LHN has also issued six options-to-purchase for its newly constructed LHN Food Chain food factory at 55 Tuas South Avenue 1.

 

In FY2025, the group will be launching three new Coliwoo properties located at Arab Street, Balestier Road and Upper Bukit Timah Road. These projects, which include a hotel, a residence, and a serviced apartment, are situated in conservation, heritage, and city center areas, and will add over 130 keys to its current operations. 

 

Two more Coliwoo projects at Middle Road and Armenian Street are set to be launched in the upcoming financial years. 

 

The group says that it aims to increase its total solar energy capacity to 13MW in FY2025. 

 

LHN Group, a direct wholly-owned subsidiary of dual-listed LHN Limited, has established a joint venture (JV) with its JV partners to acquire, develop, market and sell the property on 30, 30A, 30B, 32, 32A and 32B Lorong 22 Geylang and 32D, 32E, 32F, 32G, 32H and 32J Lorong 22 Geylang. The property was purchased at $30 million excluding GST.

 

According to LHN&rsquo s Feb 14 filing, LHN Group established a JV with its joint venture partners, so-called &ldquo JV Partner A&rdquo on the same day. The JV was established so that the group can enter into another JV with &ldquo JV Partner B&rdquo . The newly-created JV, or JV Company B, will then acquire, develop, market and sell the Geylang property.

 

The newly-formed JV has been granted the option the purchase for the property, although the option has yet to be exercised. The filing adds that the JV partners intend to redevelop, which includes demolishing and rebuilding property into a strata-titled commercial building. The JV will market and sell the units in the open market and lease, run and, or operate the remaining unsold units for commercial usage business.

 

LHN Group will be the sole project management company in charge of the new JV business.

 

Ching Chiat Kwong, executive chairman and CEO of SGX-listed Oxley Holdings , has a 90% stake in JV Partner A while his son, Shawn Ching Wei Hung, executive director and group general manager of Oxley has the remaining 10% stake in the JV partner. As at Feb 14, JV Partner A is a substantial shareholder of Coliwoo (TK), an indirectly non-wholly owned subsidiary of LHN Limited. As such, the JV partner is a connected person to LHN Limited at the subsidiary level.

 

JV Partner B is a Singapore-incorporated investment holding company and is 50%-owned by Darren Low Jun Jie and Tan Hui Kang equally. Low is a lawyer while Tan is a doctor.

 

The new JV is 58%-owned by JV Company A and 42%-owned by JV Partner B. JV Company A is 50%-owned by LHN Group and 50%-owned by the JV by Ching and his son. LHN Group and the Chings will pay a maximum contribution of $14.5 million each.

 

It' s not the first time that LHN and the Chings have teamed up. Last year, LHN and the Chings acquired Wilmer Place at 50 Armenian Street for $26.5 million on Apr 9, followed by another deal on April 22, involving GSM Building at the corner of Middle Road and Waterloo Street.