- We continue to like LHN for its robust pipeline, co-living portfolio and capital recycling strategy. Maintain BUY with an unchanged LHN target price.
1HFY24 earnings above expectations; higher-than-expected co-living margins.
- - Read this at SGinvestors.io -
- Robust revenue growth was driven by co-living revenue, which almost doubled y-o-y to S$20m. Co-living PBT margins also jumped 17ppt y-o-y to 45%, on the back of high occupancy rates and stable rental rates. This has contributed to the better-than-expected earnings.
Co-living was the main revenue growth driver
- - Read this at SGinvestors.io -
- full-period contributions from existing co-living spaces like 2 Mount Elizabeth Link and Lavender Collection, and
- higher rental rates from other co-living spaces.
- The number of keys surged 28% y-o-y to 2,151, while overall occupancy rate remained high at 92% (FY23: 95%) from strategic positioning of its properties.
- Facilities management revenue rose 14% y-o-y on more facilities management services and a greater number of carparks secured in 4QFY23, while energy business revenue tripled y-o-y from more solar panel projects. These were offset by lower industrial (-3% y-o-y) and commercial (- 5% y-o-y) property revenues, due to the expiry of three master leases in FY23.
Interim dividend proposed.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Heidi Mo UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-06-07
Previous report by UOB:
2024-03-21 LHN - Embarking On New Plans To Drive Growth Trajectory.
Price targets by 2 other brokers at LHN Target Prices.
Listing of research reports at LHN Analyst Reports.
Relevant links:
LHN Share Price History,
LHN Announcements,
LHN Dividends & Corporate Actions,
LHN News Articles
