- 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.
