PROPERTY company Centurion Corporation’s : OU8 0% revenue for the third quarter of 2023 rose to S$51.1 million, 15 per cent higher than the same period last year.

The company, which owns foreign worker dormitories and student-accommodation facilities in its portfolio, said that the increase came from higher occupancies in the dormitories in Singapore and Malaysia, as well as in its student hostels in the United Kingdom and Australia.

Higher rental rates across its properties in these four markets also contributed to the revenue increase, said Centurion in a bourse filing on Thursday (Nov 9).

Its revenue for the first nine months of its current financial year – the period ended on Sep 30 – rose 10 per cent to S$149 million, compared to the corresponding period the year before.

Revenue for its workers’ accommodation properties rose 16 per cent to S$40.1 million in the third quarter.

Centurion said it is exploring opportunities to enlarge the capacity of its Singapore portfolio, given the current shortfall in the supply of dormitory beds. The group operates five purpose-built dormitories and four quick-build dormitories, with close to 35,000 beds in total.

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Considering its purpose-built assets alone, the average financial occupancy stood at 99 per cent for the third quarter of 2023. This is slightly higher than the 98 per cent in the same quarter last year, as rental rates were increased in response to the high demand for these beds. The reopening of Singapore’s economy after the Covid-19 pandemic triggered a surge in manpower needs – a result of the ramping up of construction projects that had been delayed by the pandemic. (Average financial occupancy refers to the percentage of total gross leasable area for which a tenant is obligated to pay rent.)

Centurion noted that demand for better-managed dormitories has risen amid a growing awareness of the need for improved welfare for migrant-worker populations. Operators of such facilities now have to comply with the tighter regulations governing the standards of these dormitories.

Centurion’s portfolio of dormitories in Malaysia has 26,600 beds. The average financial occupancy in Q3 was 93 per cent, up from 86 per cent in the same period last year, with more migrant workers returning to Malaysia for work as well.

The revenue for Centurion’s student-accommodation properties rose 15 per cent year on year to US$10.8 million in the third quarter of 2023.

The average financial occupancy of its UK portfolio, comprising 10 assets sited near universities, stood at 99 per cent in Q3, on the back of strong demand from the return of both domestic and international students. A continued shortage in student accommodation in cities in which Centurion operates has also led to strong rental revisions.

The financial occupancy of Centurion’s two assets in Australia – one each in Adelaide and Melbourne – has remained strong; it improved to 89 per cent in Q3, from 85 per cent in the same quarter last year.

Shares of Centurion rose 4 per cent or S$0.015 to close at S$0.40 on Thursday.