Its property development business segment helped with maiden revenue of $12.1 million, with the sale of some strata units in a factory at 55 Tuas South Avenue 1.
LHN's commercial properties, on the other hand, suffered a 47.1% y-o-y drop in revenue.
As expected, the company is maintaining an interim dividend payout of one cent per share, in line with its policy of distributing at least 30% of its adjusted earnings.
If non-recurring items were excluded, LHN would be reporting a core net profit of $15.4 million, which is within the expectations of Maybank Securities' Eric Ong.
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"Moving forward, management remains cautiously optimistic on the demand for short-term lodging in Singapore, which should continue to support stable rental and occupancy rates for the rest of 2025," says Ong, whose target price remains at 55 cents.
Paul Chew of PhillipCapital is similarly bullish about LHN, partly due to the proposed spinoff listing of its co-living business Coliwoo.
Chew, noting that LHN is trading at a discount of 20% off its book value of 63.4 cents, believes that the spin-off will "better realise" its underlying value.
"The additional capital and asset-light model can accelerate the growth of the franchise, especially overseas. If the listing is via the issuance of new shares, there is unlikely to be a special dividend by LHN," says Chew, who has kept his "buy" call.
"However, the plan to dispose of and lease back three freehold properties, we believe, is an avenue for special dividends," says Chew, who has raised his target price to 61 cents from 56 cents by applying a higher valuation multiple of 7x earnings from 6.5x, which is still a discount compared to other hospitality groups.
"The growth outlook remains intact for Coliwoo, with a pipeline of 428 additional keys (or 16%) under renovation. This excludes any future contracts secured for healthcare accommodation," adds Chew.
LHN shares changed hands at 52 cents as at 1.15pm, up 2.97% for the day.
