Centurion Q4 earnings rise 38% to S$73.1m

MAINBOARD-LISTED Centurion Corporation posted a 38 per cent rise in net profit to S$73.1 million for its fourth quarter ended Dec 31, 2019 from S$53.1 million a year ago. 

This was mainly due to higher revenue contribution from new accommodation assets added to its portfolio, the student and worker dormitory operator said in a regulatory filing on Wednesday night after market close.  

Earnings per share stood at 8.69 Singapore cents for the quarter, up 37.5 per cent from 6.32 cents a year ago. 

Revenue for Q4 rose 15 per cent to S$36 million, from S$31.3 million a year ago. This was due to revenue contribution from newly developed assets and assets acquired, including the dwell East End Adelaide in Australia and Westlite Juniper in Singapore, which commenced operations in Q1 and Q3 2019 respectively. 

Also boosting Centurion's earnings were higher occupancy rates for its Singapore workers accommodation portfolio, and revenue from additional beds derived from the asset enhancement initiative in its RMIT Village in Melbourne, Australia. 

A final cash dividend of one Singapore cent per share was declared for the quarter, unchanged from a year ago. 

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Once approved by shareholders at the April 27 annual general meeting, the proposed dividend will be paid on May 26, after books closure on May 12. Including an interim cash dividend of one Singapore cent per share, this would bring the total dividend payout for FY19 to two Singapore cents per share. 

For the full year ended Dec 31, net profit rose 26 per cent to S$100 million, while revenue was up 11 per cent to S$133.4 million.

Looking ahead, Centurion expects the Covid-19 outbreak to have "limited impact" on its accommodation business, unless the outbreak continues to spread globally over a protracted period. 

As at Dec 31, the group operated a portfolio of 33 operational purpose-built workers and student accommodation assets comprising more than 65,000 beds across Australia, South Korea, Malaysia, Singapore, the UK and the US. 

As at 9.30am on Thursday, Centurion shares were trading at S$0.46, down S$0.01 or 2.1 per cent.