LHN Limited (SGX:41O) FY2025 Results — A Deep Dive into Revenue Drivers, Cash Flow Strength & Long-Term Prospects

LHN Limited (SGX:41O) FY2025 Results — Space Optimiser With Growing Cash Flows and Multiple Growth Engines

A simple, accounting-trained walkthrough of how LHN makes money from space optimisation, what drove its FY2025 results, and what long-term investors should watch next.

Published: 30 November 2025  |  Based on: LHN Limited FY2025 results announcement (SGX)

Key Takeaways (If You Only Have 30 Seconds)

• FY2025 revenue grew to about S$219.3m (roughly +5.3% YoY), mainly driven by Space Resource and Logistics & Mobility businesses.
• Gross profit came in around S$66.3m with a stable gross margin of about 30%, despite higher utilities, labour and maintenance costs.
• Net profit was roughly S$18.5m, a slight decline from last year, mainly due to higher depreciation and financing costs, plus changes in non-cash fair value gains.
• LHN generated strong operating cash flow of about S$39.1m and still recorded positive free cash flow after capital expenditure.
• The balance sheet remains sensibly geared with healthy liquidity and decent interest coverage for a growing, asset-light operator.
• Key growth engines are Coliwoo co-living, industrial/commercial space optimisation, and logistics & green mobility, with Facilities & Energy Management adding a steady service layer.
• Risks to watch: interest rates, wage and maintenance inflation, property cycle swings, and execution risk as the platform scales.

Contents

1. Big Picture
2. Revenue
3. Margins
4. Profitability
5. Balance Sheet / Debt
6. Cash Flow
7. Segment Performance
8. Outlook
9. Ratios & Trend Snapshot
10. FAQ
11. My Overall Take / Long-Term View

Quick Facts

Company: LHN Limited

SGX Ticker: 41O

Financial period: FY2025 (full year)

Main business: Asset-light real estate operator focused on space optimisation, co-living (Coliwoo), logistics & green mobility, and facilities & energy management.

Key geographies: Singapore (core), with regional operations supporting logistics and space optimisation solutions.

Source documents: SGX FY2025 results announcement

1. Big Picture — Turning Under-Used Spaces Into Cash-Generating Assets

LHN Limited is not a traditional “buy building, collect rent” landlord. It behaves more like a space optimiser:

• It takes under-utilised industrial, commercial and government sites,
• invests in refurbishment and reconfiguration, and
• turns them into higher-yield, income-generating assets.

FY2025 results show a business still facing higher costs and interest rates, but with growing revenue, stable margins and strong operating cash flows. Growth is anchored by:

• Coliwoo co-living (recurring, high-occupancy rental income),
• industrial and commercial space optimisation projects, and
• logistics and green mobility services that leverage LHN’s asset base.

For Singapore investors, LHN sits somewhere between a REIT and an operating company — sharing traits of both, but with more control over how it upgrades and monetises spaces.

2. Revenue — Growing Despite Sector Headwinds

LHN reported FY2025 revenue of about S$219.3m, an increase of roughly 5.3% year-on-year.

Growth was driven mainly by:

• Space Resource — higher contribution from Coliwoo co-living and newly optimised industrial/commercial spaces.
• Logistics & Mobility — fleet expansion and higher last-mile/intra-city activity.
• Facilities & Energy Management — contract-based services that provide stability, even if growth is more modest.

The headline message: top-line momentum remains positive even with higher borrowing costs and a mixed macro backdrop, suggesting that demand for LHN’s space optimisation and co-living solutions remains healthy.

Explaining it like you’re 11:

Imagine you find empty classrooms or storerooms in a school and turn them into study lounges or game rooms that students pay to use. If more rooms are converted and more students use them, your “pocket money business” grows. LHN does something similar in the real world with buildings and carparks — and this year, it managed to earn more from these spaces than last year.

Analyst insight:

• Revenue growth in a tougher macro environment suggests LHN’s offerings solve real, recurring problems (affordable living, flexible space, urban logistics).
• Top-line resilience across multiple segments reduces dependence on any single project or asset.
• For long-term investors, steady mid-single-digit or better revenue growth, combined with decent margins, can underpin attractive compounding.
• It is still important to watch the quality of revenue (long-term contracts, recurring leases) rather than just the headline growth rate.

3. Margins — Stable in a Higher-Cost World

LHN’s gross profit for FY2025 was around S$66.3m, translating to a gross margin of roughly 30%.

Key cost pressures during the year included:

• Higher utilities and maintenance for co-living and industrial properties.
• Labour and contractor cost inflation across property and services.
• Depreciation from new co-living properties and mobility fleets.
• Higher interest expenses due to the rate environment.

Despite all this, gross margin remained broadly stable — respectable for an asset-light operator that actively manages and services spaces rather than simply collecting rent.

Explaining it like you’re 11:

Think of running a canteen stall. If food and electricity prices go up but you manage to adjust your menu and prices, you can still keep your profit per plate roughly the same. LHN had to pay more for workers and power, but it also charged enough and managed operations well so that every dollar of sales still brought in about the same amount of gross profit.

Analyst insight:

• Stable margins amid rising costs indicate some pricing power and operational discipline.
• For a space-optimisation operator, gross margin stability suggests that value-add services (co-living, logistics, FM) are not purely price-taker businesses.
• Investors should still monitor the mix of segments contributing to gross profit — Coliwoo and space optimisation may carry different margin profiles from logistics or FM.
• In the long run, maintaining or gradually improving margin while scaling revenue is a powerful driver of shareholder value.

4. Profitability — Slightly Lower on Paper, Core Business Still Solid

LHN recorded FY2025 net profit of around S$18.5m, a single-digit percentage decline year-on-year.

Key reasons for the softer bottom line include:

• Higher depreciation from new assets (Coliwoo properties, fleet, refurbishment).
• Increased finance costs due to higher interest rates.
• Lower or more normalised fair value gains on investment properties, which are non-cash in nature.

From an accounting lens, the crucial question is: Is the core operating engine still healthy? Based on the strong operating cash flow and stable gross profit, the answer appears to be yes.

Explaining it like you’re 11:

Imagine your allowance looks slightly smaller this year, not because you did fewer chores, but because you bought a new bicycle using instalments and now have to pay a bit more interest each month. LHN’s “report card” looks slightly weaker mainly because it has more assets to depreciate and more interest to pay — not because its everyday business suddenly got worse.

Analyst insight:

• Net profit movements for asset operators can be distorted by depreciation, interest and fair value gains/losses; cash flow often tells the clearer story.
• In LHN’s case, core operating profitability appears intact, with the decline driven more by “accounting and financing mechanics” than by collapsing business fundamentals.
• That said, higher depreciation and interest reflect real cash commitments over time and should still be factored into long-term return expectations.
• As the platform scales, the goal should be that growth in operating profit and cash flow more than offsets these headwinds.

5. Balance Sheet / Debt — Sensible Gearing for a Growing Operator

The commentary highlights that LHN maintains low-to-moderate gearing with healthy liquidity and decent interest coverage. The group uses debt to:

• fund acquisitions and upgrading of co-living and industrial/commercial spaces, and
• support logistics and mobility fleet expansion.

Unlike highly leveraged developers, LHN’s model leans on improving yields and utilisation of spaces rather than on constantly buying new land. This helps keep its leverage profile relatively measured.

Explaining it like you’re 11:

Think of borrowing money from your parents to upgrade your small snack stall into a bigger one. If you borrow a bit but use it to make the stall much more profitable, the loan is manageable. LHN does something similar — it borrows, but not in a crazy way, and uses the money to make spaces and fleets more productive.

Analyst insight:

• Sensible gearing plus strong operating cash flow gives LHN optionality to pursue new projects without overstretching.
• In a higher-rate environment, management’s discipline on leverage becomes a key differentiator versus more aggressive peers.
• Investors should continue to monitor debt-to-equity and interest coverage, especially as Coliwoo and logistics portfolios grow.
• A stable or improving leverage profile over time would support a “steady compounder” narrative.

6. Cash Flow — One of LHN’s Quiet Superpowers

LHN generated around S$39.1m of operating cash flow in FY2025. After capital expenditure on:

• new Coliwoo co-living properties,
• refurbishment of industrial/commercial assets, and
• mobility fleet expansion,

the group still managed to produce positive free cash flow.

This is not trivial. Many property-linked businesses depend on frequent equity or debt injections to grow. LHN is increasingly able to fund growth internally out of its own cash generation.

Explaining it like you’re 11:

Imagine you run a mini shop in school. After paying for snacks, helpers, and stall rental, you still have money left to buy a new fridge to store more drinks — without asking your parents for extra money. That leftover money is like LHN’s free cash flow. It means the business is strong enough to grow using money it earns itself.

Analyst insight:

• Strong and consistent operating cash flow is a key pillar of any long-term compounding story.
• Positive free cash flow after growth capex suggests LHN can expand its asset base without constant equity dilution.
• For investors tracking portfolios with spreadsheets, free cash flow per share and its growth rate can be more informative than EPS alone.
• Over time, growing free cash flow supports flexibility in dividends, buybacks or reinvestment — all central to shareholder returns.

7. Segment Performance — Coliwoo, Space Optimisation and Mobility

7.1 Space Resource Business (Including Coliwoo)

The Space Resource division remains LHN’s main profit engine. The formula is straightforward:

1. Secure under-used or ageing buildings (often on competitive terms).
2. Repurpose and optimise them into co-living, industrial or commercial use.
3. Charge higher rents per square foot while offering better user experience.

Within this, Coliwoo is a core growth pillar, benefiting from:

• strong co-living demand in Singapore,
• high occupancy rates (often in the 80–90%+ range), and
• a pipeline of new properties across city-fringe and heartland locations.

7.2 Logistics & Green Mobility

The logistics and green mobility segment saw solid growth, supported by:

• an expanding customer base (corporate and government),
• higher utilisation of electric vehicles and mobility services, and
• synergies with LHN’s industrial land and depots.

Strategically, this segment deepens LHN’s ecosystem around urban assets and fits well with sustainability trends.

7.3 Facilities & Energy Management (FM & EM)

Facilities & Energy Management provides integrated services for both LHN-owned and third-party properties. While growth is more modest, this segment offers:

• contract-based, recurring revenue,
• operational synergies with Space Resource assets, and
• a services “layer” that enhances tenant stickiness and asset performance.

Explaining it like you’re 11:

Think of LHN as running three “clubs”: a co-living club (Coliwoo), a delivery and transport club (mobility), and a buildings-services club (facilities management). Each club collects membership fees and service charges. Together, they make the whole “school campus” more alive and useful — and LHN earns from every part of it.

Analyst insight:

• LHN is building an integrated ecosystem around real estate and mobility rather than relying on a single product line.
• Coliwoo is likely the highest-return, most recognisable brand, but logistics and FM add resilience and cross-selling opportunities.
• As the platform scales, segment interplay (e.g. mobility services for LHN tenants) can deepen competitive moats.
• Investors should track segment-level trends in revenue, margins and ROIC where disclosed.

8. Outlook — Structural Tailwinds, But Execution Still Key

LHN’s medium-term outlook is supported by several structural drivers:

• Urbanisation and affordability constraints in Singapore, which support co-living demand.
• Ongoing needs to reuse and optimise older buildings rather than always building new ones.
• Growth in last-mile logistics and green mobility as cities aim to decarbonise transport.
• Rising importance of facilities and energy efficiency for both landlords and tenants.

At the same time, management must navigate:

• interest rate volatility,
• wage and cost inflation,
• property and rental cycles, and
• the operational complexity of scaling multiple businesses.

Execution discipline — especially in capital allocation and project returns — will determine whether LHN delivers on its compounding potential.

9. Ratios & Trend Snapshot — Revenue Up, Margins Stable, Cash Flow Strong

A simplified snapshot of the FY2025 picture (vs FY2024) using the key data highlighted:

Metric	FY2024	FY2025	Trend (High-Level)
Revenue (S$m)	~208	219.3	Up ~5.3%
Gross profit (S$m)	~63–65	66.3	Stable to slightly higher
Gross margin (%)	~30%	~30%	Broadly stable
Net profit (S$m)	Slightly above 18.5	18.5	Slight decline
Operating cash flow (S$m)	High 30s	39.1	Strong and stable
Free cash flow (S$m)	Positive	Positive	Growth funded from within

10. FAQ — LHN Limited for Singapore Investors

Q1. Is LHN Limited a REIT?

No. LHN is a listed operating company, not a REIT. It earns from optimising and operating spaces (e.g. Coliwoo, industrial and commercial assets, logistics and FM), and has more flexibility over how much cash it reinvests versus pays out as dividends.

Q2. How does Coliwoo fit into LHN’s strategy?

Coliwoo is one of LHN’s key growth engines. It turns under-used buildings into co-living spaces that tap into strong rental demand in Singapore. This allows LHN to earn higher yields on converted properties while building a recognisable consumer-facing brand.

Q3. Does LHN pay dividends?

Yes. LHN follows a measured dividend policy, returning some cash to shareholders while keeping enough capital to fund growth in co-living, space optimisation and mobility. The yield will usually be lower than high-payout REITs but with higher reinvestment potential.

Q4. What are the main risks?

Key risks include interest-rate and financing costs, rising labour and maintenance expenses, execution risk in scaling Coliwoo and mobility, and property market cycles that affect rental demand and acquisition prices.

Q5. Who might LHN be suitable for?

LHN may suit investors who:

• are comfortable with small-to-mid cap volatility,
• want exposure to co-living, urban logistics and space optimisation, and
• prefer businesses with growing cash flows and sensible leverage rather than purely high yields.

11. My Overall Take as The Accounting Investor

If I had to explain LHN to an 11-year-old, I’d say: “This is a company that takes empty or old spaces, fixes them up, and then rents them out in smarter ways. It also runs vehicles and services around those spaces. Each year, it’s slowly turning more ‘boring’ places into money-making places — and it’s pretty good at turning that into cash.”

From an accounting-trained investor’s perspective, I’d summarise LHN like this:

• Business quality: A diversified, asset-light operator built around real-estate and mobility ecosystems. Not a pure landlord, not a pure REIT — a hybrid that adds operational value.
• Earnings quality: Core operating earnings and cash flows are healthy. Year-to-year profit can move with depreciation, interest and fair value swings, but the underlying engine looks reasonably robust.
• Balance sheet: Low-to-moderate gearing with decent interest cover. Sensible leverage policy gives room to grow without stretching too far.
• Cash flow: Strong operating cash flow, with positive free cash flow even after growth capex — a key strength that supports long-term compounding.
• Risk–reward: Exposed to interest rates, cost inflation and execution risk, but also leveraged to structural themes like co-living, urban logistics and sustainability.
• Investor fit: More suitable for investors who can tolerate mid-cap volatility and are looking for a steady compounder with both income and growth potential, rather than a high-yield, low-growth instrument.

Personally, I see LHN as an interesting long-term holding candidate at the right valuation — especially on pullbacks — provided management continues to allocate capital prudently and grow free cash flow per share over time.

About The Author

The Accounting Investor is a Singapore-based investment blogger and Chartered Accountant–trained analyst who enjoys explaining company accounts in plain English for busy working adults (and curious teens).

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Disclaimer: This post is for education and general information only. It is not a recommendation to buy or sell any security, and it does not take into account your individual financial situation, objectives or risk tolerance. Always do your own research or consult a licensed financial adviser before making any investment decisions. The author may or may not hold shares in the companies mentioned at the time of writing and is under no obligation to update this post.