LHN Group records net profit of $15.3 mil for 1H2021
By Timothy Tay
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - Local real estate management services company LHN Group has announced a net profit after tax of $15.3 million for 1H2021 ended March 31, 2021.
The group’s revenue increased 24.9% to $64.5 million in 1H2021. The positive earnings were mainly attributed from an increase in revenue from residential properties within its space optimisation business, as well as its facilities management business. A dip in earnings from its industrial and commercial properties partially offset its overall revenue for the six months.
Its residential properties segment saw a 28.9% y-o-y increase in revenue of about $1.5 million, mainly attributable to the commencement of operations of its new serviced residence in Cambodia and revenue from its student hostel at 1A Lutheran Road Singapore.
202 Kallang Bahru is a JTC industrial property that was jointly acquired with W&S Flexi from Ascendas REIT for $17 million in January 2020. (Picture: LHN Group)
Industrial revenue declined 42.7% y-o-y due to a fall in revenue from subleases as a result of the expiry of four master leases. The average occupancy rate of the groups industrial properties was 89% in 1H2021.
Revenue from commercial properties fell by 53.8% y-o-y due to a decrease in revenue from subleases because of the expiry of two master leases in 1H2021. The renewal of other subleases at lower rates and a decrease in revenue from its asset at 1557 Keppel Road also contributed to the decline in commercial revenues.
Looking ahead, the group says it intends to grow its residential business and has entered options to purchase properties in Singapore at 40 & 42 Amber Road, 75 Beach Road, and 115 Geylang Road. It will also seek more external facilities management contracts by providing integrated facilities management services, as well as opportunities to grow its transport fleet and expand its logistics customer base.
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