See more: Brokers initiate ‘buy’ on Coliwoo with bullish stance on growth opportunities
CSGI has an “add” call and 74 cents target price on Coliwoo, as analysts Tan Jie Hui and Lim Siew Khee view Singapore’s co-living sector to be in the midst of a structural upswing. They believe that Coliwoo is well positioned to capitalise on the next phase of growth, supported by its scale, brand strength, and proven execution track record.
The brokerage’s call and target price are underpinned by strong earnings visibility and growth prospects.
Earnings visibility in FY2026-FY2027 is mostly secured by growth in committed new keys. Coliwoo has 2,219 operational keys as of FY2025.
“We forecast y-o-y revenue growth of 14%/25%/39% in FY2026/FY2027/FY2028, driven by a 27%/11%/19% y-o-y rise in operational keys to 3,733 by FY2028. Committed key additions account for 76% of the operational keys we forecast in FY2026-FY2027,” say the analysts.
Some of the notable additions in FY2026 are Coliwoo Bugis (212 keys) and Resort Chalet (382 keys). Tan and Lim have also assumed 218 and 480 new keys coming onstream in FY2027 and FY2028, respectively. Bids under tender include Phoenix Park (300 keys), Cleantech Park hotel (320 keys), and a 360-key JV hotel in eastern Singapore. “We expect Coliwoo to acquire about 800 new keys annually, lifting total keys to 5,333 by FY2028. This should support sustainable core PATMI growth through FY2030,” they add.
Currently, Coliwoo is one of Singapore’s largest co-living operators with about 20% market share by rooms as at 2Q2025. It has also outpaced market — scaling its portfolio growth of a 42% CAGR in 2023-2025, compared to Singapore co-living room inventory CAGR of 17% in the same period.
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“By leveraging on parent company LHN’s expertise in repositioning well-located lower cost legacy commercial buildings and shophouses, Coliwoo converts underperforming assets into higher yielding co-living and hospitality uses, thereby enhancing asset level returns post-stabilisation,” say Tan and Lim.
They note that Coliwoo’s FY2025 core PATMI is 2x that of competitor The Assembly Place (TAP), which is about to also list on the Singapore Exchange (SGX). This is despite operating with about 35% fewer keys, driven by higher revenue per key rather than portfolio expansion.
“In contrast to TAP’s scale-led growth, Coliwoo grows earnings through pricing power and asset optimisation. This highlights Coliwoo’s capital-efficient model with lower reliance on continual rollout and execution risk,” say Tan and Lim.
RHB Singapore has similar sentiments. Analyst Vijay Natarajan has a “buy” call and 82 cents target price. The way he sees it, Coliwoo’s key strength lies in identifying and revitalising old, unused, and underutilised assets into co-living spaces. Its co-living assets are operated mainly under hotels and serviced apartments, co-living residential units, and student hostels, allowing it to offer flexible stay durations.
Its compact size and design ability from its long track record in space optimisation also sets it apart, resulting in its ability to charge higher rental per sq ft and superior margins.
Natarajan is expecting a net profit CAGR (FY2025-FY2028) of about 30%, backed by organic and inorganic growth. Coliwoo commands superior gross and net margins of about 70% and 39%, due to its ability to identify unique opportunities and its space optimisation track record. PATMI, as a result, is set to double by FY2028, according to Natarajan.
Meanwhile, the group’s asset-light approach is expected to fuel the next leg of growth, with Coliwoo having demonstrated its ability by monetising two owned assets via sale and leaseback deals so far.
Coliwoo also plans to expand, mainly via leased sites and management contracts with selective acquisitions. Another growth avenue, the analyst views, is its recent partnership with Singapore’s Health Ministry to provide accommodation for healthcare workers.
As at 1.50pm, shares in Coliwoo are trading 60 cents. It listed on SGX on Nov 6, with an IPO price of 60 cents, raising about $101 million.
