LHN (41O) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 29.4% YoY to S$70.569m; profit attributable to equity holders increased 8.8% to S$14.121m.

• Growth reflected stronger co-living and Facilities Management, plus maiden Property Development sales.

• Adjusted PBT excluding fair-value movements rose 63.5% to S$29.1m; investment-property fair-value losses and lower associate/JV earnings weighed on reported results.

• An interim dividend of 1.0 Singapore cent per share was declared, unchanged YoY.

Financial highlights

• Revenue was S$70.569m, up 29.4%; gross profit rose 23.2% to S$40.637m.

• Gross margin was 57.6%, down 2.9 percentage points YoY from 60.5%.

• PBT rose 18.3% to S$18.049m; net profit increased 12.7% to S$14.939m and attributable profit rose 8.8% to S$14.121m.

• Adjusted PBT excluding fair-value gains/losses increased 63.5% to S$29.1m from S$17.8m.

• Basic EPS was 3.38 Singapore cents versus 3.17 cents; diluted EPS was 3.34 cents versus 3.14 cents.

Outlook and guidance

• Co-living rental demand outlook remained cautiously optimistic; projected private residential rent growth was 2–4% in 2025.

• Target to add at least 800 co-living rooms annually through master leases or selective acquisitions; exploring capital recycling and an asset-light AUM model.

• Coliwoo projects at 453 Balestier Road and 260 Upper Bukit Timah Road are expected to launch in 2H FY2025; 159 Jalan Loyang Besar is planned as a resort-style co-living chalet.

• Pipeline includes 212 keys at 141 Middle Road and 120 keys at 50 Armenian Street, with openings expected from 3QFY2025 through 3QFY2027.

• Further solar and EV-charging projects are anticipated, alongside technology investment to expand solar generation beyond rooftops.