Centurion’s Q1 revenue up 30% to S$89.4 million with growth in Singapore, Australia

[SINGAPORE] Accommodation specialist Centurion Corp posted a 29.5 per cent rise in revenue to S$89.4 million for the three months ended Mar 31, it announced after trading hours on Wednesday (May 13).

This was driven by new operational beds in its Singapore purpose-built worker accommodation (PBWA) and Australia purpose-built student accommodation (PBSA) assets, along with high occupancy in its PBSA assets in the UK.

The PBWA segment’s Q1 revenue rose 29.7 per cent to S$69.2 million. This was partly due to the consolidation of the Westlite Mandai asset, following the acquisition of an additional 55 per cent interest in it last year.

Centurion also added new beds from completed asset enhancements in Singapore, and recorded contributions from the Harum Megah portfolio in Malaysia, acquired last year.

PBSA revenue for the quarter was up 30.5 per cent to S$19.6 million, thanks to sustained high occupancy in the UK, as well as positive rental revisions there and in Australia.

The company also recorded contributions from the EPIISOD Macquarie Park student accommodation asset in Sydney.

Centurion noted that student visa-management measures and cost-of-living concerns are expected to moderate the UK PBSA sector.

However, its portfolio of 10 PBSA assets are “well-located in cities anchored by Russell Group universities, and the (company) will focus on active management to maintain healthy occupancies and rental rates”, it said.

Centurion’s Chinese build-to-rent asset – 400 apartments at Centurion-Cityhome Gaolin in Xiamen – hit an average financial occupancy of 83 per cent in Q1, down from 90 per cent in Q4 last year. But the fall is “typical” in light of the Chinese New Year holiday, the company said.

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Chief executive Kong Chee Min is “confident in the structural fundamentals supporting our living sector assets and business”.

The company is focused on enlarging its portfolio of owned and operated assets, growing fee income from management services, and supporting the Centurion Accommodation real estate investment trust, he said.

Centurion ended Wednesday at S$1.67, up by S$0.01 or 0.6 per cent.