LHN dates back to 1991, as a real-estate management group with a track record in the re-purpose and re-leasing of real estate to capture trends. LHN takes old, unused and under-utilised industrial, commercial and residential properties and enhance and transform them into thoughtfully designed and highly usable space.
It has three main businesses: space optimisation, consisting of industrial, commercial and residential properties; facility management; and logistics services.
LHN was listed on the Catalist in 2015 and dual-listed on the mainboard of the Hong Kong Stock Exchange in 2017. It is a real-estate management group, generating value through expertise in space optimisation. LHN also provides facility management and logistics services, which complement its space optimisation business.
In Singapore, LHN manages 31 commercial, industrial and residential properties, two container depots and 74 carparks.
Revenue is derived from three businesses.
Space optimisation. Revenue is primarily generated from rental income, including warehousing service fees, from the following properties:
Facility management. Revenue from building maintenance, security services, cleaning, landscaping and pest control is derived from fees charged to tenants on a cost plus mark-up basis. Revenue from car-park management is derived from car-park rates which are either fixed by LHN for private car parks or regulated by the government for car parks owned by government bodies.
Logistics services. Revenue is derived from charges for the transportation and storage of containers, cargo-handling, service and repair.
An increase in revenue in FY20 stemmed primarily from higher residential revenue under its space optimisation and facility management businesses. The increase in revenue from residential properties was led by: 1) non-recurring revenue of S$16.1mn from its new dormitory business for services provided in 2HFY20; and 2) revenue of S$6.4mn mainly from co-living residences, a new serviced residence project in Myanmar and a new student hostel in Singapore.
Revenue growth was affected by the adoption of IFRS 16, as income and expenses for subleases are now reclassified as interest income and interest expenses respectively. Without the adoption of IFRS 16, FY20 revenue would have been S$151.8mn (Figure 3).