Centurion Corp Q1 net profit up 1% to S$9.32m

CENTURION Corporation posted a net profit of S$9.32 million for the first quarter ended March, up one per cent compared to S$9.20 million a year ago. Revenue for the quarter climbed 13 per cent, from S$25.28 million to S$28.54 million.

The growth in revenue was mainly due to contributions from the opening of Westlite Woodlands and CSL Selegie in July and October 2015 respectively, as well as positive rental reversions from the group's student accommodation business in Australia and the United Kingdom, said the company in a statement on Monday.

In Q1 2016, the group achieved an average occupancy of over 95 per cent for its four workers accommodation assets in Singapore, and around 70 per cent for its six assets in Malaysia, excluding Westlite Senai II which opened in January 2016. The group expects to complete its fifth workers accommodation asset in Singapore, ASPRI-Westlite Papan with 7,900 beds, by the middle of this year.

Meanwhile, its student accommodations in both the UK and Australia operated at close to full occupancy in Q1. Centurion announced earlier this month that it has entered into an agreement to acquire four more student accommodation assets in the UK, which will increase its student portfolio by 519 beds to 3,208 beds upon completion of acquisition. The group said that it is building its operational capability in this business segment to improve management and efficiency.

Looking ahead, Centurion said that it expects the workers accommodation market in Singapore to be more competitive this year. However, the long-term outlook remains positive despite short-term headwinds as there continues to be a good demand for purpose-built dormitory beds. In Malaysia, given the weaker economy and ringgit, occupancy rates have softened.

Centurion said that it expects positive growth through the ramping up of occupancy in existing assets, such as Westlite Woodlands and Westlite Senai II, as well as new revenue streams from the completion of ASPRI-Westlite Papan and the completion of acquisition of the four new assets in the UK.