LHN Limited - Maybank Research 2023-12-06: Growth Driven By Co-living

• LHN Limited (SGX:41O) has received approval to transfer its listing to the SGX mainboard from Catalist, and will debut on 13 Dec. We remain positive on LHN’s growth strategy, but lower our FY24-25 core profit forecasts by ~14-16% to account for a higher-for-longer interest rate scenario.
• - Read this at SGinvestors.io -

Core PATMI below expectations; declares final & special dividend

• LHN's FY23 core PATMI of S$19m (excluding fair value loss and disposal gain) is lower than our/market expectations, mainly due to higher financing cost (~+80% y-o-y) and less contribution from JVs.
• - Read this at SGinvestors.io -

Stable occupancy and rental for Coliwoo

• LHN’s FY23 co-living revenue of S$28.3m is ~7% ahead of our estimate. This strong performance was driven by growth in the number of keys (+68% y-o-y) and higher average rental rates in FY23. Occupancy as of Sep’23 dipped to 94.7%, mainly due to new launches (vs. 96.7%/98% in 1H23/2H22).
• We factor in a stable occupancy rate and rental rates, but expect co-living to continue to underpin growth, as LHN aims to add 800 keys each year.
• Management expects to secure new tenders from Singapore Land Authority (SLA), and results may be announced as early as this month.

Expanding other income sources

• Read more at SGinvestors.io.

Li Jialin Maybank Research | Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2023-12-06 SGinvestors.io

---