As at end-1QFY2026, co-living (Coliwoo) occupancy stood at 96.5% (+0.4ppt q-o-q), while industrial and Work+Store spaces recorded healthy occupancies of 95.3% (-0.3ppt q-o-q) and 93.1% (-5.9ppt q-o-q due to effect from JV starting 1QFY2026) respectively.
“The resilient occupancy rates underscore the defensive, recurring nature of the group’s income base, supported by sustained tenant demand, which is likely to continue driving growth in LHN’s space optimisation business,” say the analysts.
LHN spin-off listed Coliwoo in November 2025, allowing Coliwoo its own platform to raise funds, while LHN can also focus on growing its other businesses.
The Coliwoo portfolio expanded to 3,200 rooms (3,529 rooms including 85 SOHO), up from 2,933 rooms at end-FY2025, attributable to a new accommodation management contract with a transport operator and 1 King George’s Avenue’s JV acquisition. Of the 3,200 rooms under Coliwoo’s portfolio, 865 rooms are currently under renovation, with the majority expected to be ready progressively over FY2026.
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“We expect to see a continued uplift to operating metrics as these rooms come on-stream,” say Mo and Tang.
Meanwhile, LHN’s capital recycling efforts are gaining pace. In 1QFY2026, LHN completed the sale-and-leaseback of Coliwoo Hotel Pasir Panjang ($43.9 million), transitioning the asset to a more asset-light structure while retaining operational control. The group has also recently proposed the sale of seven of their freehold assets with a combined price tag of $218.5 million, with the intention to leaseback and manage the properties, unlocking more value for the group.
LHN’s Work+Store business continues to deliver resilient, recurring income, supported by a high occupancy rate of 93.1% across its seven facilities and 2,014 units as at end‐1QFY2026. While portfolio size remained unchanged during the quarter, management is focused on yield and margin optimisation, with plans to upgrade selected basic units into air‐conditioned storage (around 10,000 sq ft targeted in FY2026), which the analysts believe should support higher rental rates and profitability over time.
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Meanwhile, the facilities management segment continued to gain traction in 1QFY2026, with 14 new contracts secured and 100 contracts renewed, serving 119 clients across multiple sectors. Carpark operations also expanded steadily, with the portfolio reaching 105 carparks (around 28,500 lots) as at quarter-end, reinforcing the scale and recurring income nature of the division. LHN also has two carpark projects in its pipeline, which is expected to add another 1,232 vehicle lots under the facilities management business. Going forward, LHN aims to grow its facilities management segment through targeted M&A.
As for the group’s energy and property segments, it is expected to continue scaling up through disciplined, asset light initiatives.
As at 3.00pm, shares in LHN are trading at 58 cents, while Coliwoo shares are trading at 52 cents.
