LHN (41O) Q1 2024 earnings summary

Executive summary

• Space Optimisation remained the major revenue contributor; industrial, commercial and Coliwoo occupancy each exceeded 90% as of December 2023, with 2,153 keys under management.

Segment performance

• Commercial operations covered five Singapore properties and one in Indonesia, with ~359,000 sqft managed; industrial operations covered 15 Singapore properties and ~2.046m sqft.

• Self-storage operated seven Singapore facilities with over 1,300 units; Coliwoo had 19 Singapore locations and four overseas locations across Myanmar, Cambodia and China.

• Facilities management secured 24 new contracts; parking operations covered 80 Singapore car parks with over 26,000 lots and two Hong Kong car parks with over 800 lots.

• Energy secured seven solar contracts with combined capacity of ~1.7 MW and managed 17 EV charger points, including through a joint venture.

• Construction continued at 55 Tuas South, a 112,000-sqft saleable-area industrial development; TOP was expected on 31 August 2024.

Outlook and guidance

• Targeting at least 800 additional keys annually for three years.

• Two projects are scheduled to open in 2H FY2024: 48 & 50 Arab Street and healthcare-professional lodging facilities at 100 Ulu Pandan Road and 60 Boundary Close.

• 288 River Valley is expected to begin operating in 4Q FY2024, with an estimated 39 keys.

• A January contract with MOH Holdings covers design, retrofit and operation of two lodging facilities for ~700 healthcare professionals; operations are expected to start in H2 2024.

• Exploring capital recycling and a move toward an asset-light AUM model.