LHN Group 1QFY2026 Business Update: Co-Living Growth, Portfolio Expansion & Sustainable Real Estate Strategies

LHN Group 1QFY2026 Business Update: Key Highlights and Investor Insights

Corporate Snapshot

LHN Group, listed on the SGX Mainboard, is a leading real estate management services provider in Asia, with a market capitalisation of approximately S\$254 million as of 4 March 2026. The company focuses on transforming unused, old, and under-utilised properties, creating productive environments and maximising leasable areas. The shareholder structure consists of a 45% controlling shareholders and a 55% free float, providing a balanced mix of stability and liquidity.

Business Engine and Core Segments

Space Optimisation (The Core): The primary business line involves redesigning and renovating properties to maximise net lettable areas (NLA) and rental yields. This segment targets industrial, commercial, and residential assets, with significant value-added services for tenants.
Energy Business (The Power): LHN offers renewable energy solutions, including solar energy, electricity retailing, and electric vehicle (EV) charging stations, providing both efficiency and sustainability for clients.
Property Development (The Foundation): The Group actively participates in property acquisitions, development, and investment activities, including recent joint ventures and asset repositioning initiatives.
Facilities Management (The Pulse): LHN delivers integrated facilities management and carpark management services, strengthening recurring revenue streams and operational synergies across their portfolio.

1QFY2026 Performance Highlights

Occupancy and Market Leadership: The Group maintains a high overall occupancy rate exceeding 90% across its portfolio, with the Coliwoo co-living segment achieving a stellar 96.5% occupancy rate. LHN is now the market leader in Singapore’s co-living sector with 3,200 rooms under the Coliwoo brand.
Portfolio Expansion: Strategic joint ventures led to the acquisition of the 680 Upper Thomson Road and 1 King George’s Avenue properties, further strengthening asset diversification and risk-mitigation.
Facilities Management Growth: LHN secured 14 new facilities management contracts and added over 750 new carpark lots during 1QFY2026, expanding its services to include aircon and solar panel maintenance.

Portfolio Breakdown and Revenue Contribution

Industrial Properties: 16 properties (2.1 million sqft NLA), 7 Work+Store storage facilities with 2,014 units.
Commercial Properties: 5 properties (320,000 sqft NLA).
Residential (Co-living): 27 Coliwoo properties (3,200 rooms), 3 85 SOHO properties (329 rooms).
Revenue Contribution FY2025: Industrial (33.9%), Commercial (4.1%), Residential (62.0%).

Co-living Portfolio and Pipeline

Coliwoo: 27 strategically located properties across Singapore, with 3,200 rooms and a robust pipeline. 865 rooms under renovation are expected to be ready by FY2026, indicating significant near-term organic growth potential.
Upcoming Projects:
- 141 Middle Road – 212 rooms, expected operational 2QFY2026
- 159 Jalan Loyang Besar – 380 rooms, expected operational 3QFY2026
- 1 King George’s Avenue – 153 rooms, expected operational 4QFY2027
- 50 Armenian Street – 120 rooms, expected operational 1QFY2028
Major Acquisition: The Group has entered a put and call option to acquire a leasehold strata hotel at 2 Changi Business Park Avenue 1 for S\$101 million. This asset, with over 250 rooms and ground-floor retail, is expected to complete by 31 March 2026. Its strategic location near Changi Airport positions it to capture demand from transit passengers, aviation personnel, and professionals involved in Changi Terminal 5 construction. The acquisition supports Coliwoo’s co-living expansion by securing a large-format asset in a high-growth precinct.

Storage Solutions (Work+Store)

Work+Store continues to grow, with 2,014 storage units across 7 facilities and a high 93.1% occupancy rate. The business supports e-commerce, SMEs, and individuals, and is adding value via enhanced features like air-conditioned and wine storage units.

Property Development and Asset Transformation

55 Tuas South Avenue 1: Redeveloped into a multi-user food processing hub (49 strata units, ~112,000 sqft). Seven units sold as of 31 Dec 2025, with the remaining repositioned for leasing to enhance recurring income and value for future buyers.
680 Upper Thomson Road: Acquired via joint venture in October 2025. Plans include redeveloping into a strata-titled industrial complex, maximising land value (land size: ~263,902 sqft, future GFA: ~527,804 sqft).

Facilities Management and Carpark Expansion

LHN serves 119 integrated facilities management clients and manages 105 carparks with approximately 28,500 vehicle lots. Technology adoption and remote monitoring underpin its operational efficiency. Recent wins include carpark projects at Ngee Ann Polytechnic and Ibis Bencoolen, set to add over 1,200 lots in 2QFY2026.

Energy Business and Sustainability Initiatives

Solar PV: Installed capacity reached 10.8MW as of 31 Dec 2025, with an additional 2.5MW in the pipeline. The Group’s solar panel maintenance services now offer one-time and routine maintenance plans, ensuring optimal asset performance.
EV Charging: 19 stations installed and operational.
Electricity Retailing: The business supplies both energy and renewable energy.

Strategic Corporate Actions

Acquisition of 1 King George’s Avenue: On 20 November 2025, Coliwoo (via a 50:50 JV with Macritchie Developments) completed the acquisition of the REHAU Building, which will be converted into a co-living space with retained commercial units. This continues the Group’s strategy of converting under-utilised properties into higher-yielding assets.
Sale & Leaseback of Coliwoo Hotel Pasir Panjang: On 18 December 2025, Coliwoo entered a sale and leaseback, disposing its 80% interest in Coliwoo PP Pte. Ltd. (now Sky Bow Properties). This arrangement unlocks capital for redeployment while allowing Coliwoo to continue operating the property. The move aligns with the Group’s transition to a more asset-light model, potentially improving return on equity and freeing capital for growth without compromising operational scale.

Strategic Roadmap for FY2026

Space Optimisation: Expand the Work+Store footprint with new acquisitions and convert more units to air-conditioned storage.
Residential/Co-living: Target expansion of the Coliwoo portfolio to 4,000 rooms by end of 2026. Enhance overseas performance of 85 SOHO residential portfolio.
Facilities Management: Accelerate technology adoption, enter new sectors, and pursue M&A to boost market share.
Innovation & Sustainability: Develop energy harvesting from non-roof surfaces (e.g., carports) and adaptive reuse of heritage/old buildings.

Potential Share Price Catalysts

Major Asset Acquisitions: The S\$101 million Changi Business Park acquisition and completion of 1 King George’s Avenue represent significant capacity increases and potential value creation.
Asset-Light Transition: The sale & leaseback of Coliwoo Hotel Pasir Panjang could improve financial flexibility and returns, appealing to investors seeking higher capital efficiency.
Strong Occupancy and Pipeline: Near-full occupancy and a robust pipeline in the co-living and storage segments underpin earnings visibility and growth momentum.
Expansion of New Services: The addition of solar panel and aircon maintenance services in facilities management diversifies revenue streams and enhances the Group’s value proposition.

Conclusion

LHN Group’s 1QFY2026 updates reflect strategic progress on multiple fronts: expansion of its co-living and storage portfolios, entry into new business lines, capital recycling initiatives, and a clear sustainability roadmap. The Group’s focus on asset-light strategies, technology adoption, and sustainable urban redevelopment positions it well for future growth, and several recent transactions and pipeline projects could be material share price catalysts in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making any investment decisions. The information is based on company disclosures as of March 2026 and is subject to change without notice. Past performance is not indicative of future results.