JustCo sets 50% dividend payout from 2027 as H1 loss halves 

[SINGAPORE] JustCo will pay out half its net profit after tax from FY2027, in a move that the newly listed flexible workspace operator said reflects its confidence in generating “meaningful” profits as its business scales. 

Speaking at an earnings briefing on Friday (Aug 7), executive chairman and CEO Kong Wan Sing said the group arrived at the 50 per cent dividend payout ratio after modelling the company’s growth, capital needs and cash generation over the next three to five years. 

This includes the expected mix of traditional leases – which are more capital-intensive since JustCo funds the fit-out – and more “asset-light” management contracts in which the landlord bears all or part of the fit-out cost.  

Kong said that even in a conservative scenario, the group was “comfortable” with funding its committed expansion while paying out dividends. 

The 50 per cent payout ratio was also deemed to offer a “meaningful yield”, based on its initial public offering price of S$0.94, and when compared with other companies, he added. 

JustCo’s H1 results

The briefing followed JustCo’s release of its first-half results on Thursday evening, its first since listing on the Singapore Exchange on May 22. 

For the six months ended Jun 30, its net loss narrowed 52 per cent to US$839,000, from US$1.7 million in the year-ago period. This translated into a loss per share of US$0.0017, compared to US$0.0045 in 2025.

Excluding one-off expenses, the newly listed group’s H1 net profit after tax would have been about US$100,000 instead.

“It’s not a lot,” Kong acknowledged, “but at least it’s profitable… (and) I think it’s a good thing that we are able to show the growth.” 

SEE ALSO

DBS initiates coverage on JustCo with ‘buy’, S$1.06 target price

Deloitte Singapore set to move out of Shenton Way base to Orchard Central in 2027

JustCo takes over master tenancy at OG Orchard Point building with push into co-living market

JustCo’s dismal debut: Did institutional investors misjudge the company’s public market value?

GIC-backed co-working firm JustCo ends 17.6% below IPO price in lacklustre mainboard debut

More

This came as revenue grew 24 per cent to US$80.8 million, up from US$65.1 million in H1 2025, due to higher revenue per workstation and an expanded network. Revenue per workstation per month across the group rose 11 per cent year on year to US$468.45.

Free cash flow rose to US$3.2 million in H1, rising 256 per cent from about US$900,000 in the year-ago period, as cash earnings before interest, taxes, depreciation and amortisation (Ebitda) “more than covered” capital expenditure on new centres.

Its cash balance came in at US$169.4 million as at end-June, up 63 per cent from end-2025. 

Kong said the jump in free cash flow showed that JustCo’s operations could “churn out” cash and essentially be “self-funding” – making it “well-placed to pursue the growth that we are committed to, without (needing) to go back to the market for further fundraising”. 

At the same time, cash Ebitda margin went up to 13.1 per cent in the half year, from 6.6 per cent in H1 2025; it was around 10 per cent for the full-year 2025.

This is expected to continue trending up, growing in the double digits, even as the group opens more new centres, Kong said. “My personal goal is 15 per cent (as) a bare minimum for this business.” 

A growing network of centres

JustCo's network grew from 50 centres and 35,067 workstations to 57 centres and 37,350 workstations between end-2025 and June 2026.

The group plans to have 78 centres in its network by January 2027, Kong added.

Average portfolio occupancy stood at 80 per cent in H1, down from 82 per cent previously. 

Occupancy at mature centres – defined as those in operation for more than a year – was around 85 per cent, up from 83 per cent last year.

Occupancy at non-mature centres was much lower, at 20 to 30 per cent. But Kong pointed out that the two figures were not directly comparable because non-mature centres could include those at very different stages of ramp-up. 

JustCo Place and the Marina Square centre

Asked about Deloitte’s lease at the new JustCo Place in OG’s Orchard Point building, Kong indicated that the consultancy’s first batch of employees will move there in September, and the second batch the following month. He declined to disclose details of the commercial agreement.

Deloitte is set to occupy all 64,000 square feet (sq ft) of co-working space in JustCo Place.

Kong noted that the average lease term at its co-working spaces was 1.5 years. About 30 per cent of customers stay for more than five years, another 30 per cent for three to five years, and under 10 per cent for less than a year. 

He added that JustCo had received further inquiries for the centre, but no longer had space available. 

Asked about its 57,000 sq ft Marina Square centre, Kong said JustCo has yet to receive a termination notice from the landlord, although he expects to receive one eventually.

“It’s a known fact that they will redevelop (the building), so it’s a matter of time,” he said. 

A termination notice would likely give the group nine to 12 months to prepare – which he described as “ample time” – but contingency plans have already been made, Kong said.

“That’s the whole reason we took up the OG space,” he said. “But now OG is 100 per cent (occupied). We have other plans on how to move our customers to other locations, which also means that it will add on to the occupancy (rate).” 

Shares of JustCo rose 1.6 per cent to close S$0.01 higher at S$0.64 on Friday, still well below its IPO price of S$0.94 a share.

Despite the dismal debut, DBS in July initiated coverage on the home-grown co-working player with a “buy” and a 12-month target price of S$1.06.

When asked about the group’s share performance, Kong said he felt the counter was “insanely undervalued”. “It’s the Singapore stock market. If you look at all the IPOs… all are under water.” 

While he was unsure how the company could directly address this, he said the management would remain “laser-focused on delivering execution” and increase education of JustCo’s operations.

“The result (will) speak for itself.”