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Centurion's Q4 profit gets major boost from fair value gain on investment properties
CENTURION Corporation reported on Thursday that its net profit for the fourth quarter ended Dec 31, 2014, soared to S$72.97 million, from S$26.94 million a year ago, thanks largely to a major boost from the fair value gain on its investment properties.
The latter stood at S$40.31 million for the quarter, compared to S$6.70 million a year ago.
The accommodation provider generated S$26.11 million in revenue during the quarter, up 74 per cent from a year ago, boosted in part by maiden revenue from its four newly acquired student accommodation assets in the United Kingdom, as well as an increase in capacity of its workers accommodation.
Excluding the fair valuation gains, the net profit derived from the group's core business operations in the fourth quarter was about S$10 million, compared to the S$6 million recorded a year ago. Its accommodation business contributed close to 92 per cent of the net profit.
For the full year 2014, net profit was up 21 per cent, at S$111.20 million, while revenue was up 48 per cent, at S$84.44 million.
Centurion said its balance sheet remains healthy and robust, with S$63.1 million cash and cash equivalents.
It intends to unveil more details on its plans to set up a workers accommodation Reit "to unlock value in certain assets as well as to recycle capital to pursue its growth strategies''.