Centurion posts higher full-year net profit, proposes S$0.005 final dividend

MAINBOARD-listed Centurion Corp OU8 reported a net profit of S$52.7 million for the full year ended December 2021, from S$17.2 million the previous year on lower fair-value losses.

Centurion, which operates purpose-built worker and student accommodation (PBWA and PBSA respectively), recorded a lower net fair-valuation loss of S$3.1 million, down from S$27.6 million in FY2020. This was due to improvements in the fair valuation of the group's PBSA portfolio in the United Kingdom (UK).

Excluding the impact of fair valuation, core business profit attributable to equity holders would have been up 13 per cent from S$41.3 million to S$46.5 million in FY2021.

The board has recommended a final dividend of 0.5 Singapore cent for FY2021, payable on May 27. No dividend was declared in the corresponding period the previous year.

Revenue was up 11 per cent to S$143 million in FY2021 from S$128.4 million the year before, attributable to contributions from the newly leased and operated assets for workers accommodation in Singapore and Malaysia.

The group's PBSA portfolio in the United Kingdom also gave revenue a boost as Covid-19 disruptions eased. While occupancy rates have not fully recovered to pre-Covid-19 levels, the UK portfolio achieved a occupancy rate of 82 per cent for the second half of 2021, up from 53 per cent in the corresponding period the year before.

The overall increase in revenue was, however, offset by lower takings from the group's existing PBWA assets in Singapore and PBSA portfolio in Australia, where demand was dampened by Covid-19 travel restrictions.

Singapore PBWA assets financial occupancy rates dropped 9 percentage points to 85 per cent for the full year given that the inflow of migrant workers back to Singapore had been disrupted by the emergence of new Covid-19 variants. The demand for PBSA in Australia also took a hit due to strict travel restrictions and border closures that were in place.

Expenses fell 3 per cent year on year to S$44.5 million as the group focused on mitigating the impact of Covid-19 disruptions by enhancing operational efficiencies and managing costs.

Earnings per share came in at 6.27 Singapore cents in FY2021 versus the 2.04 cents the year before. Net asset value per share as at Dec 31, 2021 stood at 78.46 cents, higher than 72.03 cents the previous year.

While the group has delivered better results in the latest financial year, challenges lie ahead amid the transition to living with an endemic Covid-19, said Centurion chief executive Kong Chee Min.

"As we continually calibrate with present and future pandemic management measures, we will remain focused on carrying out our core mission to be a caring accommodation provider to provide for the wellbeing of our residents," he said.

Shares of Centurion ended Thursday at S$0.36, down S$0.01 or 2.7 per cent.