Wee Hur Holdings’ workers' dormitory business is poised to double its contribution to the company’s coffers with the launch of Pioneer Lodge.

While the looming lease expiry of their established Tuas View dorm hangs over the business, management is optimistic about securing a renewal with the Jurong Town Corporation.

In a market where worker housing is in scorching demand, this segment is a vital pillar for Wee Hur, as we gleaned from their latest results briefing.

Tuas View: The Cash Cow Near Full Capacity

Wee Hur’s Tuas View dormitory, a 12-year-old operation with 15,744 beds, is nearly maxed out at 15,500 occupants.

chart7.25 With rates approaching S$500 per bed monthly, it’s generating roughly S$30 million in annual profit.

The lease expires 31 Oct next year, but renewal discussions with JTC will start soon, and management sees no major hurdles to renewal (but extension of duration is the question), especially given the market’s tight supply.

Tuas View is too big a dorm to take out of the market.

Compliant with standards until 2030, Tuas View needs no immediate refurbishments.

This table shows the strong profitability of Tuas View:

Wee Hur: Workers’ dormitory (Tuas View mainly)
S$'000	1H2025	Full year FY2024
Total segment sales	42,210	84,690
Inter-segment sales	(228)	(83)
External revenue	41,982	84,607
Segment result	22,181	31,275
Data: Company

Pioneer Lodge: The New Star Ramping Up

WEEHUR Pioneer Lodge4.25

Pioneer Lodge, Wee Hur’s shiny new dorm in Jurong, is set to boost the business segment.

Phase One, with 3,144 beds (30% of total stock), currently has 1,000 sign-ups but has commitments for 2,500 by year-end.

Marketing for Phase Two will kick off soon with all 10,500 beds expected to be operational by December.

Thanks to its location and premium amenities like ensuite toilets, it will command higher rents than Tuas View.

Management expects occupany and revenue stabilization in 1-1.5 years, with Pioneer Lodge potentially matching Tuas View’s S$30 million contribution despite fewer beds -- thereby potentially doubling the dorm segment’s impact.

Market Dynamics of Dorms

Singapore’s dorm market is under pressure, driven by a construction upcycle with mega projects like Integrated Resort extension and Changi Airport Terminal 5, plus a rule mandating secured beds before employers can bring in foreign workers.

GohWeePing4.25 Goh Wee Ping, Chief Investment Officer, Wee Hur HoldingsSupply is shrinking, with 4,000-5,000 beds from temporary dorms built during the Covid pandemic closing by year-end.

Wee Hur’s dorm maintains occupancy in the high 90% range.

One-year contracts keep them agile in a rising market, with shorter terms at a premium.

This scarcity-driven demand makes dorms a resilient backbone for Wee Hur.

Research house	Call	Target price
CGS International	Add	$0.91
DBS Research	Non-rated	$0.80 (fair value)
Phillip Securities	Buy	$0.90

It is a key fundamental plank in the investment thesis of Wee Hur, for which Phillip Securities' latest report pegs a target price of 90 cents (current stock price: 74 cents).

Meanwhile, Wee Hur's construction segment has a S$629 million order book, which could jump if it wins further HDB projects.

Beyond that, Wee Hur is also into property development, purpose-built student accommodation, fund management, and alternative investments with a strong focus on Singapore and Australia.

For more, see Phillip Securities report here.

Read about another dorm operator:

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New Dorm Rollout To Double This Company's Dorm Profits Amid Housing Crunch?

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