See more: LHN to spin-off and list co-living business; posts growth in 3QFY2025 update
“We view this as a key milestone, as the IPO will enhance transparency, provide direct capital access, and crystalise value for shareholders,” says analyst Heidi Mo in a Sept 25 report.
After the listing, LHN is expected to hold approximately 70% of Coliwoo, retaining majority exposure to its growth. With expansion to 2,960 keys in 3QFY2025, and a target of 800 new keys annually, Coliwoo remains LHN’s largest growth driver.
Its robust pipeline includes a 212-key serviced apartment at Middle Road and a 382-key resort-themed chalet at Jalan Loyang Besar, slated to be operational in FY2026.
Thus far, the group’s occupancy across its Coliwoo portfolio remains strong with numbers rebounding to 96.7% by September, after a temporary dip from new launches.
“With rates at 40-50% below hotels but offering serviced amenities, Coliwoo continues to attract expatriates, corporates and students,” says Mo.
UOBKH cites a JLL report that shows foreign students are a major driver of co-living demand in Singapore, with arrivals expected to exceed 60,000 annually by 2026, many seeking flexible housing. Mo believes that this trend reinforces resilient rental demand and supports Coliwoo as a core earnings contributor.
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Meanwhile, the group’s Work+Store brand is scaling into specialised formats such as air-conditioned and wine storage, tapping into rising demand for flexible storage solutions. Singapore’s self-storage industry is expanding rapidly, with demand estimated to grow 10-15% annually.
“With shrinking home sizes, rising residential costs and land scarcity fuelling demand, LHN’s Work+Store, which integrates storage and workspace, is well-positioned to capture this growth,” says Mo.
The group’s facilities management segment had also secured 17 new contracts and nine renewals in the third quarter, bringing its client base to 126. LHN’s carpark management business, with 100 sites over 27,000 lots, also provides a stable recurring income. The energy division has grown to 9.6MW of installed solar capacity, supplemented by EV charging points.
“These segments, though smaller, are showing positive contribution trends and help diversify the group’s earnings,” says Mo.
On the other hand, the group is also continuing its capital recycling efforts, as it completes the $25.8 million divestment of 115 Geylang Road, while 471 Balestier Road and 404 Pasir Panjang Road are underway. Proceeds are being redeployed into Coliwoo projects and other growth initiatives, while the analyst views the current gearings as “manageable”.
“The increasing reliance on master leases and management contracts underpins an asset-light strategy, enabling scalable growth without excessive strain on the balance sheet. This ensures sustainable cash flow generation and supports reinvestment into higher-yielding businesses,” says Mo.
As at 1.30pm, shares in LHN are trading 3.17% lower at 92 cents.
