LHN warns FY2023 net profit could decline 23.8% amid fair value loss on investment properties

REAL estate services provider LHN Group warned that it expects to record a 23.8 per cent year-on-year decline in net profit, to no less than S$40 million, for the year ended Sep 30, 2023, from S$52.5 million a year earlier.

In a bourse filing on Tuesday (Nov 14), the group attributed the lower profit estimate to a net fair value loss on its and its joint ventures’ investment properties in FY2023, compared with net fair value gain recognised in FY2022.

This fair value loss would be partially offset by one-off gains of about S$26 million from the disposal of its associate Getgo Technologies and 84.05 per cent shareholding interest in non-wholly owned subsidiary LHN Logistics, the group noted.

It added that the profit warning is based on a preliminary assessment by the board on information currently available, and may be subject to further adjustments and finalisation upon further review by auditors.

LHN shares closed down 1.5 per cent or S$0.005 to S$0.33, before the warning was issued.