Centurion H1 Profit Drops 38% Due to Lower Valuation Gains, as Revenue Jumps 13% (19459044)
Westlite Ubi was opened in December last year and contributed to higher revenue. (Image: Centurion Corp.)
Centurion Corp.’s first-half profit attributable fell 38 percent to S$73.9m ($57.5m) as the Singaporean developer specialised in purpose-built housing booked lower fair-value gains for investment properties.
Revenue increased 13 percent on a year-on-year basis to S$140.7 millions, as the SGX listed group reported Thursday. In a press releaseWestlite Ubi is a 1,650 bed worker dorm that opened in December last year in Singapore’s east-central area.
Centurion’s net profit from core business operations (a metric that excludes the fair-value adjustments) grew 22 percent on an annual basis to S$65.4 millions.
“While Malaysia, Australia, and Singapore experienced temporary occupancy moderating due to market headwinds and season factors, the overall performance remained strong, supported by a strong demand in Singapore, and the UK, along with positive rental rate revisions throughout all markets,” said Centurion’s CEO Kong Chee Min.
Mixed Bag In Beds
Revenues from Centurion’s purpose-built workers accommodation increased 15 percent year-onyear to S$108.6 millions in the first half. The segment’s financial occupancy average dropped to 90 percent, from 95 percent a year earlier. This was mainly due to lower occupancy rates in Malaysia.
Centurion CEO Kong Chee Min (19659007) Singapore PBWA revenues increased 17 percent on an annual basis to S$99.2 millions as Westlite Ubi reached full financial occupancy in April. The average financial occupancy of the Singapore PBWA Portfolio, including Westlite Ubi was 99 percent in the second half. Centurion said that Westlite Sheung Shui, which opened in Hong Kong last November, achieved a financial occupancy of 28 per cent at the end the first half. This is up from 25 per cent at the end March.
Revenues from purpose-built accommodation for students grew by 4 percent on an annual basis to S$30.9million. In Britain, PBSA revenues rose 8 percent to S$22.5million, mainly due to higher rental rates. However, a 2 percentage point drop in financial occupancy, to 97 percent, was partially offset by the increase in revenue.
Financial occupancy dropped to 91 percent, down from 94 percent a year earlier.
Centurion stated that the market for PBSAs in Australia will remain resilient, as the cap on foreign students is set to increase by 9 percent by 2026.
The group’s two PBSA properties in Hong Kong were operational by September last year and achieved an average occupancy of 40% during the first half of this year. Centurion expects occupancy rates to increase with the start of academic year in 2025’s third quarter.
REIT milestone ahead
Centurion touted on Thursday the proposed listing of Centurion accommodation REIT as “a key milestone ahead” in its efforts to become asset-light, and recycle capital. However, no timeline was provided.
The group announced last month that the new vehicle would be expected to purchase 14 of Centurion’s purpose-built project at launch, with an agreed total value of S$1.8 billion. CAREIT’s initial portfolio will consist five PBWS properties in Singapore, eight PBSA properties in Britain, and one PBSA property in Australia. This will provide 21,282 PBWA and 2,772 PBSA bed.
Centurion’s assets under management at the end of June totalled S$2.6 billion and 70,291 bed capacity across 37 properties in six countries. “Centurion is actively looking for opportunities to recycle and expand its asset portfolio to drive sustainable growth and create long-term value,” the group stated.
Centurion’s shares closed Friday at S$1.69. This was a 6.6 percent decline.
