It houses foreign workers comfortably
Doing its job well has paid off for Centurion, whose stock is flying high this year
AS THE only listed dormitory operator in Singapore, Centurion Corp has attracted a fair bit of attention in recent months, particularly after last December's riot in Little India. Two brokerage houses, AmFraser and DMG & Partners, initiated "buy" calls in quick succession. The riot highlighted a shortage of liveable spaces for workers such as dormitories - a gap that Centurion fills, analysts noted.
Now, the company's stock is flying high at over 70 cents a share last week - more than two-and-a- half times the 27 cents it traded at a year ago. Construction group and joint-venture partner Lian Beng also bought a 5 per cent stake in the company in March.
The key draw of the stock is how it gives exposure to cashflow- generating property assets in the undersupplied segment of foreign worker dorms, where the rent per bed has been increasing 20 per cent a year and Centurion's Singapore occupancy rates are almost full.
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