Fair value losses drag LHN H2 net profit down 82.7% to S$5.9 million

[SINGAPORE] Property player LHN group posted a net profit of S$5.9 million for the half-year ended Sep 30, 2025, down 82.7 per cent from S$34.3 million in the year-ago period, on the back of fair value losses on its investment properties.

Revenue for the same period fell 8.4 per cent to S$60.9 million, compared to the period a year ago, the mainboard-listed group said in a bourse filing on Friday (Nov 28).

Earnings per share stood at S$0.014 for the second half, down from S$0.0826 in the year-ago period.

The board of directors proposed a final dividend of S$0.01 for FY2025, and a special dividend of S$0.02. This will be in addition to the interim dividend of S$0.01 per share declared in the first half of FY2025.

For the special dividend, the board recommended that shareholders be given the option to receive the special dividend wholly or partly in the form of new shares in lieu of cash.

The sum of the proposed final and special dividends, together with the interim dividend, takes the total dividends for FY2025 to S$0.04. This is higher than the S$0.03 in total dividends from a year ago.

The proposed final dividend will be paid out on Mar 6, 2026, and the special dividend will be paid out on Apr 10, 2026, if approved by shareholders.

For the full year ended Sep 30, 2025, LHN Group’s net profit fell 57.6 per cent to S$20.1 million. The group attributed the drop to a net fair value loss of around S$18 million on its investment properties for FY2025, compared to a net fair value gain of S$10.5 million the previous financial year.

As a result, the group’s profit before taxation fell 48.9 per cent to S$26.3 million in FY2025, compared to a year ago.

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Revenue for the full year rose 8.6 per cent to S$131.5 million, underpinned by contributions from its property development and facility management segments.

By segment, the group recorded its first revenue contribution from its property development business, amounting to S$14.1 million in FY2025. This was generated from the sale of seven strata-titled units located within its nine-storey food factory situated at 55 Tuas South Avenue 1.

Revenue for its facilities management business rose 5.9 per cent to S$37.6 million over the same period.

Revenue for its energy segment rose 29.9 per cent to S$2.1 million for FY2025, compared to a year ago. This growth was primarily driven by an increase in revenue from the solar energy business, said the group.

However, revenue for the full year was dragged down by its corporate segment, which fell 57.2 per cent to S$420,000 for the period under review.

The group’s revenue for its space optimisation business fell 8.6 per cent to S$77.2 million for the full year ended Sep 30, 2025.

Kelvin Lim, the executive chairman of LHN, said that the group’s financial performance for the year underscored the resilience of its core business and success of its strategic initiatives.

“Looking ahead, our focus is clear. We have a defined pipeline to expand our Coliwoo portfolio to nearly 4,000 rooms by 2026, capturing the strong demand in the residential market.

“With our property development, facilities management and energy businesses poised for further growth, we are confident in our ability to continue delivering sustainable, long-term value to our shareholders,” said Lim.

LHN shares were up 0.8 per cent or S$0.005 at S$0.67 on Friday, before the announcement.