SINGAPORE (May 14): LHN Group reported a 41.5% drop in 2Q earnings to nearly $1.98 million from a year ago, bringing 1H earnings to $2.8 million.

Revenue fell 11.8% to $26.7 million from a year ago.

Segmentally, revenue from industrial properties decreased by 4.3% to $9.7 million mainly due to the movement of tenants due to expiry of sub-leases and the renewal of sub-leases at lower rental rates.

Revenue from commercial properties decreased 43.8% to $5.3 million in 2Q19 mainly due to the absence of the one-time revenue contribution of $3.8 million from the rights to use 85 SOHO brand in Cambodia recognised in 2Q18 and a net decrease in revenue of $0.3 million from renewal of sub-leases at lower rental rates.

Revenue from residential properties increased 83.6% to $0.7 million in 2Q19 from $0.4 million in 2Q18 to mainly due to increase in revenue from the new co-work co-live business.

Revenue from facilities management increased by 2.5% to $5.3 million mainly due to increase in revenue from the management of carparks in Singapore and Hong Kong; and increase in demand of facilities management services.

Revenue from logistics services increased 10.4% to $5.7 million in 2Q19 mainly due to higher revenue from the trucking business for increase in transportation services provided.

In its outlook, LHN remains cautious over its business outlook in the Singapore property market where it mainly operates. However, the group is expected to be on track for its business expansion plans.

Shares in LHN closed 0.1 cent lower at 15 cents on Tuesday.