SINGAPORE (Aug 7): LHN Limited, the property management services group, swung to a 3Q17 net loss of $3.7 million compared to earnings of $1.9 million a year ago.

The group’s bottom line was affected mainly by $2.9 million in dual listing expenses related to its proposed dual primary listing on the Mainboard of The Stock Exchange of Hong Kong.

Revenue fell 2.1% to $26.2 million in 3Q17 from a year ago. The group’s Space Optimisation Business continued to be affected by Singapore’s lacklustre commercial and industrial property leasing market with revenue from this segment falling 14.8% year-on-year to $16.7 million.

However, LHN’s Facilities Management Business and Logistics Services Business continued to enjoy healthy revenue growth in recent years, with y-o-y revenue growth of 43.8% to $4.6 million and 22.5% to $4.9 million respectively.

LHN expects rental demand for industrial and commercial properties to remain depressed mainly because the market is currently facing an oversupply of industrial and commercial space. This is expected to cause further downward pressures in rental and occupancy.

In May, LHN announced its entry into the Greater China market with its first car park management contract in Hong Kong. This milestone is in-line with the group’s strategy to expand into the Greater China Region and supports its intention for a dual listing on the Hong Kong bourse.

Shares in LHN closed 0.5 cent lower at 21 cents.