SINGAPORE – Mainboard-listed LHN has warned that it expects net profit to drop 28.6 per cent to no less than $14.5 million for the first half ended March 31, 2024, from $20.3 million in the previous corresponding period.

In a profit guidance update released on May 5, the real estate management services company attributed the lower net profit estimate to the absence of a one-off gain from the disposal of associate Getgo Technologies and a lower gain from net investment in subleases.

Another factor is the absence of profit from discontinued operations in relation to the group’s disposal in LHN Logistics and its group of companies.

LHN Logistics, of which LHN was previously majority shareholder, was delisted from the Singapore Exchange’s Catalist board on Nov 1, 2023, following its compulsory acquisition by China’s Milkyway Chemical.

The lower profit was partially offset by an increase in earnings from the group’s co-living business and a lower net fair value loss on the group and joint ventures’ investment properties.

The company said that the information is based on the preliminary assessment of its unaudited financial results, which it expects to release in “due course”.

LHN shares closed flat at 33 cents on May 3. THE BUSINESS TIMES