Broker: CGS International Securities
Date of Report: January 14, 2026
Excerpt from CGS International Securities report.
Report Summary
- Coliwoo Holdings Limited is a leading co-living operator in Singapore, capitalizing on the city’s undersupply of affordable and centrally located rental housing for non-residents. The company has about a 20% market share and is growing faster than its peers.
- With a robust pipeline of new properties and expansion plans, Coliwoo’s core net profit is forecasted to grow at a compound annual growth rate of 24% through FY28, supported by high occupancy rates (c.95%), strong recurring cash flows, and a proven return-on-equity (ROE) accretive business model.
- Coliwoo operates via a hybrid model of owned, master-leased, and managed properties, enabling flexibility and scalability with lower capital risk. Most revenue comes from master-leased assets, with additional income from facilities management and management fees.
- The company benefits from Singapore’s regulatory restrictions on short-term rentals (like Airbnb), driving demand for legal, flexible co-living solutions that appeal to expatriates, students, and professionals looking for convenience, community, and all-inclusive rents.
- Rising property prices and high foreign buyer taxes in Singapore support rental demand and favor co-living as an affordable alternative to traditional leasing, with significant headroom for further market penetration.
- Coliwoo’s capital-efficient model and strong parent company support (LHN Ltd) have enabled rapid expansion, value creation through adaptive reuse of underperforming properties, and margin improvements via scale and operational leverage.
- The company is trading at an attractive valuation (c.9.4x CY27F P/E), a significant discount to global peers, despite higher recurring ROE. The report initiates coverage with an Add rating and a target price of S\$0.74 based on DCF valuation.
- Key risks include potential declines in occupancy/rental rates, renewal challenges for master leases, competition, and limited suitable acquisition opportunities. However, Coliwoo’s strong brand, asset-light strategy, and healthy balance sheet position it well for continued growth.
- Coliwoo targets a 40% dividend payout ratio for FY26-28F, translating to a forecasted dividend yield of 3-5%.
- ESG highlights include improving governance and environmental initiatives, such as solar energy deployment and customer satisfaction improvements, although ESG factors are not yet factored into fundamental valuation.
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