LHN reports higher FY2024 earnings on fair value gains and better operations

LHN has reported higher earnings of $47.3 million for its FY2024, up 23.8% from the year-earlier ended Sept 30, 2023.

The company attributes the better showing to both stronger operating numbers from its facilities management activities and so-called “space optimisation” business. Fair value gains of some $14.7 million booked for its investment properties helped lift the bottom line as well.

Revenue for the full year was up 29.2% y-o-y to $121 million.

In line with the better results, LHN is paying a cent each in special and final dividend, bringing total payout for the whole of FY2024 to three cents.

LHN’s “space optimisation” business, which includes operating co-living spaces, enjoyed a 37.7% y-o-y growth in revenue to $83.2 million. The co-living segment, in particular, saw a “significant boost” surge of 85.5% y-o-y to $52.4 million, driven by stronger demand which was met by greater capacity.

Despite the topline growth, LHN’s adjusted segmental profit before fair value adjustments for its space optimisation segment was $31.5 million for FY2024, up marginally from $30.6 million in FY2023.

LHN says that gains from co-living were offset by poorer showing of its industrial and commercial properties.

The company says it is keeping its “strategic focus” of meeting “strong demand” for this market.

In the current FY2025 ending September 2025, LHN expects to expand its co-living offerings via new developments such as 48 and 50 Arab Street, the GSM Building at 141 Middle Road and 260 Upper Bukit Timah Road, adding more than 250 keys to its portfolio.

LHN says its facilities management business generated revenue of $35.5 million in FY2024, up 13.4% y-o-y, thanks to new cleaning contracts and expansion of its car parks management business.

LHN has also adopted an active capital recycling strategy. In 4QFY2024, its 40%-held associate sold the car park at Bukit Timah Shopping Centre for $22 million. On the other hand, it invested via a 50%-held joint venture to buy 50 Armenian Street for $26.5 million.

Kelvin Lim, LHN’s executive chairman describes FY2024’s results as an affirmation of the company’s direction in “refining our co-living offerings and capital recycling approach.”

“As we move into FY2025, we remain committed to leveraging demand for sustainable, flexible living and workspaces,” he adds.