LHN (41O) Q3 2024 earnings summary

Executive summary

• Coliwoo occupancy exceeded 90% as at 30 June 2024; occupancy across industrial, commercial and co-living spaces was also above 90%, excluding JV properties and progressive handovers.

• Space Optimisation remained the leading revenue contributor; activities included co-living, commercial and industrial space, car park and facilities management, and energy services.

Outlook and guidance

• Targeting at least 800 additional co-living keys annually for three years, while exploring capital recycling and an asset-light AUM model.

• The 55 Tuas South Avenue 1 food factory has 112,000 sqft of saleable area; TOP was expected by end-August, with units ready for sale in September, subject to TOP.

• Improving employment conditions were expected to support a recovery in demand for affordable co-living accommodation and industrial space in H2 2024.

• 268 and 288 River Valley projects were planned for launch, with 30 and 39 keys respectively; two managed hostel-type accommodations were set to start at end-August.

• After 30 June, secured an EV charging installation and operation agreement and three solar contracts totaling ~0.8 MW; solar capacity was 6 MW at 30 June.

Segment performance

• Coliwoo managed 2,784 keys in June 2024, up from 2,534 in March after adding 250 keys in 3QFY2024; portfolio comprised 1,851 Singapore and 275 overseas master-leased keys, plus 550 Singapore and 108 overseas owned/JV keys.

• Commercial and industrial portfolio included 17 owned and 5 JV properties; 15 Singapore industrial properties covered over 2 million sqft, with 7 self-storage facilities and over 1,600 units.

• Car park management covered 94 Singapore sites with over 25,000 lots and 3 Hong Kong sites with over 1,000 lots; facilities management secured 28 new contracts and renewed 16.

• Energy operated 17 EV charging points through the business and its JV, and secured two 3QFY2024 solar contracts totaling ~0.1 MW; total solar capacity was ~6.0 MW.

• The 250 added co-living keys included 62 at 260 Upper Bukit Timah Road and 188 at 141 Middle Road.