Centurion’s growth story stays anchored in Singapore with Kranji Close win

Centurion Corporation, a specialist accommodation provider, continues to focus its growth trajectory in Singapore, where it recently secured a significant 7,000-bed dormitory site at Kranji Close. The company's first half revenue for the period ending June 30th, 2023, was S$184.9 million, representing a 31% increase from the previous year.

Local revenue, which accounted for 70% of the group's total income, grew by 31% year on year, driven by the consolidation of Westlite Mandai and the addition of operational beds at Westlite Toh Guan and Westlite Mandai. Net profit, however, fell 64% to S$26.5 million, a decline attributed to a wider fair-value loss on investment properties and a share of losses from associated companies.

Despite this, Centurion's core business operations, excluding fair-value adjustments and one-off items, saw a 34% year-on-year increase in net profit to S$87.7 million. The company declared an interim dividend of S$0.02 per share, which will be paid out on September 30th. Centurion's Singapore worker dormitories currently have an average financial occupancy rate of 94%, slightly lower than the 99% average in the previous year.

The company anticipates improved occupancy in the second half of the year. Centurion also placed the top bid for a second dormitory site, winning the Kranji Close site on August 5th with the highest bid of S$343 million. The 22,079-square-meter plot on a 30-year lease with a gross plot ratio of 3.0 is expected to commence operations by the third quarter of 2028.

The group holds about 38.25% of the shares in its Centurion Accommodation Real Estate Investment Trust (CAReit), and CEO Kong Chee Min stated that the stake would not fall below 30% to maintain focus on the specialized accommodation sector. In Malaysia, Centurion operates 13 assets with 36,006 beds, with revenue rising 31% to S$12.5 million, though occupancy slightly decreased to 73% due to foreign worker quota caps.