LHN Limited 2026 AGM: Key Insights and Investor Takeaways

LHN Limited held its Annual General Meeting (AGM) on 30 January 2026, providing shareholders with a comprehensive overview of its latest financial results, business developments, and strategic priorities. Below are the detailed highlights and important disclosures from the AGM, with special focus on price-sensitive information and future value drivers.

1. Financial Performance & Dividends

• Dividend Announcements: Shareholders approved a final dividend of 1.0 Singapore cent per ordinary share and a special dividend of 2.0 Singapore cents per ordinary share for FY2025. These payouts reflect the company’s commitment to return value to shareholders, subject to its dividend policy of distributing at least 30% of profits attributable to shareholders (excluding fair value gains/losses, impairments, and non-recurring items). This clear dividend policy and the special dividend could be viewed positively by investors seeking yield and financial discipline.
• Dividend Policy Clarity: Management emphasized that dividend payouts are guided by cash flow and business needs, but the minimum payout remains at 30% of profits attributable to shareholders. This transparency is crucial for investor confidence.
• Coliwoo Spin-off Impact: LHN successfully spun off Coliwoo in November 2025, which positively impacted share price in the preceding year (up over 100%). Post-spin-off, the share price declined, likely due to investor rotation into Coliwoo, which now pays dividends. LHN retains a residual benefit from Coliwoo via dividend receipts and ongoing profits from other business segments.
• Loan Repayment Update: After the Coliwoo IPO, S\$20 million remained owed to LHN; S\$10 million has since been repaid with S\$10 million outstanding. This repayment schedule is relevant for cash flow projections.
• Earnings Explanation: FY2025 earnings per share were lower than FY2024, primarily because Coliwoo did not acquire new properties, resulting in fewer asset enhancement and valuation gains. However, operational profits are trending upwards.

2. Strategic Direction & Growth Areas

• Core Focus: LHN remains committed to space optimisation—its main sector—including industrial space, self-storage, and new scalable concepts relevant to daily life. The company is expanding its facilities management, car park, energy services, and property-related businesses.
• Facilities Management and Car Park Business: LHN has operational expertise managing car parks for industrial and commercial properties, government tenders, and JTC car parks. The company recently won a tender at Ngee Ann Polytechnic and continues to bid for new projects. Car park operations deliver healthy margins and capital gains.
• Energy Segment: LHN supplies energy to its tenants, holds an energy retailer licence, and has invested in solar power generation. Clean energy is supplied to both its own and third-party buildings, with good financial returns. Management noted industry consolidation and ongoing regulatory developments in renewable energy.
• Property Development: The nine-storey food factory development generated S\$14.1 million in revenue. Of 49 units, about 8 have been sold, with others available for sale or lease. Leasing is seen as a way to enhance sale prices by making assets income-generating.
• Major Development Project: LHN is part of a consortium developing the new NTUC headquarters, a S\$600 million project. While LHN has not previously worked on projects of this scale, it sees this as an opportunity to gain valuable experience. The project will leverage LHN’s expertise in industrial layout and specifications, but is not intended for co-living (though dormitory use may be considered).

3. Technology & Digital Initiatives

• Coliwoo App: The Coliwoo application was developed through an outsourced, white-label solution for faster deployment. All data is owned and housed by LHN, with robust IT safeguards. While external access or SaaS offerings are possible in the future, there are currently no such plans.
• Hotel Booking Platforms: Coliwoo’s serviced apartments and hotels cater primarily to long-stay tenants (80%), with the remaining rooms marketed via Booking.com, Agoda, and travel agents.

4. Corporate Actions & Mandates

• Share Issuance Authority: The AGM approved the authority for directors to issue shares and convertible instruments up to 50% of issued share capital (excluding treasury/subsidiary holdings), of which up to 20% can be issued non-pro rata. This provides flexibility for capital raising, acquisitions, or other corporate actions.
• Share Buy-Back Mandate Renewal: The share buy-back mandate was renewed, allowing LHN to buy back up to 10% of issued share capital at up to 105% of the average closing price (on-market) or 110% (off-market). Buy-backs may be used for employee awards, scrip dividends, or reuse, depending on circumstances. This flexibility could support share price during periods of market weakness or be used for capital management.
• Director Elections & Fees: Ms. Jess Lim and Mr. Chan Ka Leung Gary were re-elected as directors. Directors’ fees of S\$230,400 (FY2026) and meeting allowances of S\$9,000 (FY2025) were approved. PricewaterhouseCoopers LLP was re-appointed as independent auditor.

5. Investor Questions & Management Responses

• Growth Areas: Management reiterated ongoing expansion in space optimisation concepts and facilities management segments.
• Share Buy-Back Timing: Buy-backs may be considered for multiple purposes, including employee awards and scrip dividends.
• Property Development Sales: Only a minority of units in the food factory project are sold, with leasing seen as a way to enhance sale prices.
• Large-Scale Project Experience: The NTUC headquarters development is a major step for LHN, potentially increasing its profile and expertise in large projects.

6. Potential Price-Sensitive Information

• Dividend and Special Dividend: The payout of both a final and special dividend is a significant event, likely to be viewed positively by shareholders and potentially supportive of share price.
• Coliwoo Spin-off and Loan Repayment: The completion of the Coliwoo spin-off and partial repayment of loans could affect LHN’s cash flow and valuation.
• Expansion and Strategic Focus: Ongoing expansion in space optimisation, facilities management, and car park/energy businesses, as well as participation in a major S\$600 million NTUC headquarters project, highlight future growth opportunities.
• Share Buy-Back Mandate: Renewal of the buy-back mandate provides flexibility for capital management and could be used to support share price.

Conclusion

LHN Limited’s AGM provided significant insights into its financial position, dividend policy, strategic direction, and ongoing business developments. The approval of dividends, strategic expansion initiatives, and corporate mandates are all potentially price-sensitive news. Investors should monitor the company’s execution on its expansion plans, cash flow from Coliwoo, and ongoing developments in its facilities management and property businesses.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisers before making any investment decisions. The information is based on official AGM minutes and may be subject to change or interpretation.

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