Centurion’s growth story stays anchored in Singapore with Kranji Close win

[SINGAPORE] Centurion Corporation’s growth remains centred on Singapore, where the specialised accommodation provider has been awarded a 7,000-bed dormitory site at Kranji Close.

It also put in the top bid for a second site.

Singapore accounted for S$129.8 million, or 70 per cent, of group revenue in the first half ended Jun 30, with local revenue up 31 per cent year on year.

The gain came mainly from the consolidation of Westlite Mandai, along with 5,460 beds at Westlite Toh Guan and Westlite Mandai that became operational between December 2025 and May 2026.

Group revenue rose 31 per cent to S$184.9 million.

Net profit fell 64 per cent to S$26.5 million, from S$73.9 million a year earlier, Centurion said on Wednesday (Aug 12).

This was weighed down by a wider fair-value loss on investment properties, as well as a share of losses from associated companies of S$4.2 million, reversing from a S$27.8 million share of profit a year earlier.

Net profit from the group’s core business operations, which excludes fair-value adjustments and one-off items, rose 34 per cent year on year to S$87.7 million.

The board declared an interim dividend of S$0.02 a share, unchanged from a year earlier; this will be paid out on Sep 30.

SEE ALSO

Centurion H1 net profit drops 64% to S$26.5 million

Centurion wins Kranji Close purpose-built dormitory site tender with S$343 million offer; trumps 9 other bidders

Average financial occupancy at Centurion’s Singapore worker dormitories eased to 94 per cent from 99 per cent; 5,460 beds added at Toh Guan and Mandai between December 2025 and May 2026 have yet to be fully taken up.

Committed occupancy at the two stood at 99 per cent and 87 per cent, respectively, as at Jul 31. The group expects occupancy to improve in H2.

The government has released five dormitory sites with more than 40,200 beds for tender across 2026 and 2027.

Centurion won the Kranji Close site on Aug 5 with the highest of 10 bids at S$343 million. The 22,079-square-metre plot, on a 30-year lease with a gross plot ratio of 3.0, allows for 7,000 beds and is expected to be operationally ready by the third quarter of 2028. 

The group has also put in the top bid of S$221.7 million for a 2.84-hectare site at Lok Yang Way; the outcome is pending.

Asked at a media briefing on Thursday whether Centurion sees any scope to monetise more of its Centurion Accommodation Real Estate Investment Trust ( CAReit ) units to recycle capital into acquisitions or developments, CEO Kong Chee Min said the group would not let its stake fall below 30 per cent.

Centurion held about 38.25 per cent of the units in CAReit as at Jun 30.

“We are quite happy to keep the units. We wouldn’t sell down,” said Kong. He said the stake was meant to keep the group focused on the specialised accommodation sector, rather than to serve as a source of capital.

In Malaysia, Centurion operates 13 assets, with 36,006 beds in Johor, Penang and Selangor. Revenue there rose 31 per cent to S$12.5 million, although occupancy slipped to 73 per cent from 83 per cent as foreign worker quota caps weighed on demand.

Chief investment officer Ho Lip Chin said the acquisition of the Harum Megah portfolio in September 2025 was part of a longer-term strategy to build scale.

A Malaysian Reit remains an aspiration, he said, but on a longer runway rather than as an immediate plan.

Centurion guided for revenue of about S$190 million in H2, up some 22 per cent year on year. It expects portfolio capacity to grow from 85,528 beds as at Jun 30 to about 94,944 beds by 2028.

Shares of Centurion fell 5.9 per cent or S$0.10 to close at S$1.60 on Thursday. Units of CAReit ended the day 4.3 per cent or S$0.05 lower at S$1.11.