Centurion Q1 revenue up 4.6% to S$47.1 million on higher occupancies, raised rents

PROPERTY player Centurion’s revenue rose to S$47.1 million for the first quarter ended Mar 31 from S$45.1 million the year before.

This was mainly driven by increases in occupancies and positive rental revisions across its purpose-built workers’ accommodation (PBWA) in Singapore and Malaysia, and its purpose-built student accommodation (PBSA) in Australia, the group said in a business update on Wednesday (May 10) night.

Revenue from the PBSA segment grew 6.9 per cent to S$11.7 million, from S$11 million in the year-ago period; revenue from the PBWA segment grew 5.4 per cent to S$35.2 million, from S$33.4 million the previous year.

The group, which owns, develops and manages specialised accommodation assets, said financial occupancies for its Singapore PBWA portfolio have fully recovered to pre-pandemic levels, supported by positive reversion of rental rates. The portfolio consists of five purpose-built dormitories and four quick-build dormitories.

Financial occupancies in the purpose-built dormitories in Singapore rose to 98 per cent in Q1, from 95 per cent in the year-ago period; the quick-build dormitories maintained “close to full occupancy” in the first quarter. (Financial occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement; this is regardless of the actual use or occupation of the space by that tenant.)

Even so, revenue generated by the Singapore assets fell slightly to S$30.5 million from S$30.6 million, as two migrant worker onboard centres which the group managed stopped operations last September.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

In Malaysia, financial occupancy at the group’s PBWAs recovered to 93 per cent in Q1, from 68 per cent the previous year, due to the inflow of new workers with the easing of border restrictions.

Revenue rose 43.8 per cent to S$4.9 million from S$3.4 million previously.

In Australia, average financial occupancy for the group’s two assets in Adelaide and Melbourne improved to 80 per cent in the first quarter, from 49 per cent the previous year, on the return of international students.

Revenue from the Australian PBSA grew to S$3.2 million from S$1.8 million, boosted by healthy rental reversions.

“We are pleased to have started the year with improvements in revenue across our global portfolio, with the growth of student and worker populations across the countries where Centurion operates,” said Kong Chee Min, Centurion’s chief executive.

“At the same time, we are mindful of continued macroeconomic challenges such as inflationary pressures and rising interest rates, which may impact our business and performance. We will monitor these developments with prudent financial management,” he added.

Shares of Centurion closed S$0.025 or 7 per cent lower at S$0.33, before the results were announced.