Dear Shareholders
,
I am pleased to present LHN Limited
’
s inaugural
annual report for the financial year ended 30
September 2015 (
“
FY2015
”
)
.
The past year has been an eventful one for
the Group
.
We embarked on a new chapter as a
publicly-listed company when our shares began
trading on the Catalist Board of the Singapore
Exchange Securities Trading Limited (
“
SGX-ST
”
)
on 13 April 2015
.
Almost immediately following the listing
,
our Space Optimisation Business secured a
new seven-year master lease for 18 Tampines
Industrial Crescent
.
The lease
,
which gives us
the option to renew for another seven years
,
comprises a three-storey building and a seven-
storey ramp up building with a permissible net
lettable area of more than 440
,
000 sq ft
.
As at
the date of this report
,
the occupancy rate for
this building is already a healthy 79%
.
The Group also increased its overseas
presence during the year
.
In our first foray
into Myanmar
,
we signed a master lease with
a local developer in Yangon to open our first
GreenHub premium Small Office
,
Home Office
(
“
SOHO
”
)-style serviced residence in the region
.
85 SOHO – A Serviced Residence managed by
GreenHub comprises 20 units of one- and three-
bedroom apartments and 28 capsule concept
units
.
Targeted at the burgeoning expatriate
community and located downtown
,
the property
caters to the booming demand for quality
residences in Yangon
.
In Jakarta
,
we entered into a six-year master
lease agreement that saw the opening of our
second GreenHub serviced office in Indonesia
.
The lease
,
which gives us an option to renew
for another three years
,
was for a 13
,
200 sq ft
penthouse office unit on level 23 of Plaza Marein
.
This is a Class A office building situated in the
heart of the CBD area surrounded by prominent
office buildings and a mere 5-minute drive to the
nearest shopping malls and 5-star hotels
.
The
property is targeted at business tenants who are
aiming to penetrate the Indonesian market
.
With respect to other corporate
developments
,
we expanded our Logistics
Services Business beyond Singapore when our
container depot in Laem Chabang
,
Thailand
,
became fully operational in May 2015
.
PERFORMANCE REVIEW
Overall
,
we performed relatively well
.
Despite an
increasingly challenging market
,
we achieved a
modest 6
.
2% revenue growth to $96
.
4 million
.
However
,
as we took steps to ramp up our
operations in anticipation of future growth
,
the
higher level of business activity led to increased
costs and expenses
.
Adding to it was also a $1
.
6
million listing expense recorded in this financial
year
.
As a result
,
net attributable profit declined
66
.
9% to $4
.
2 million
.
On a segmental basis
,
under the Group
’
s core
Space Optimisation Business
,
we responded to
market conditions by strengthening our portfolio
of industrial and commercial properties while
scaling down on our residential segment
.
It
was the right strategy as we achieved double-
digit growth in our commercial and industrial
8
LHN Limited Annual Report
Chairman
’
s
Message
