SINGAPORE - Higher revenue from its accommodation business were not enough for Centurion Corporation to avoid a fall in fourth quarter earnings.
A net fair valuation loss on its investment properties sent net profit for the three months to Dec 31, 2016, down 61 per cent to S$2.9 million from S$7.5 million a year ago, the company reported on Wednesday (March 1).
The group's investment properties comprising workers and student accommodation assets were valued by independent valuers as at end-2016, and a net fair valuation loss of S$3.1 million was recognised in the fourth quarter, as compared to a net fair valuation gain of S$3.6 million a year earlier.
Revenue for the quarter rose 23 per cent to S$34.8 million, as contribution from the accommodation business grew by 26 per cent, or S$7.1 million.
However, the group's smaller optical business saw revenue decline by S$0.6 million due to weaker demand and the cessation of business operations in Indonesia.
For the full year, net profit fell 16 per cent to S$28.7 million from S$34.1 million a year ago, despite a 15 per cent growth in revenue to S$120.3 million.
Earnings per share at end-2016 stood at 3.86 Singapore cents, down from 4.52 cents a year earlier.
Centurion said it is confident in maintaining its market position in the workers accommodation business in Singapore and Malaysia.
On its student accomodation business, it said that with most of its properties operating at close to full capacity, the group's outlook for this segment remains positive.
Centurion added that it finalised plans to develop a new accommodation block in RMIT Village, Australia, which when completed, is expected to perform well and contribute positively to the group's earnings.
A final dividend of 1 Singapore cent a share has been recommended, unchanged from a year ago.