Centurion Q1 profit drops 15% on expiry of facility lease

College & Crown, a student accommodation located near Yale University in the United States.
College & Crown, a student accommodation located near Yale University in the United States.PHOTO: CENTURION CORP

SINGAPORE - Centurion Corp posted a 15 per cent fall in its first quarter profit to $9.13 million, on the back of a lease expiry of its Westlite Tuas facility, which ceased operations in December 2017.

The drop in the accommodation developer's profit came on the back of reduced revenue. For the quarter ended March 31, 2018, the top line fell by 17 per cent - $6 million - to $30.1 million from the previous year.

Centurion, however, posted a higher gross profit margin of 72 per cent as compared to 67 per cent a year ago, due to the absence of a $1.2 million amortisation cost related to intangible assets on the Westlite Tuas lease.

Investment properties increased by $10.5 million, mainly due to the asset enhancement works being carried out for the group's workers and student accommodation assets in Malaysia, Australia and the United Kingdom.

Kong Chee Min, chief executive of Centurion Corporation said: "FY2017 was a strong year for the group as it benefited from the lease extension of Westlite Tuas by nine months. While the performance was lower due to the lack of Westlite Tuas' contribution, the performance of our existing portfolio of assets remained strong in Q1 2018."

"The group also has a steady pipeline of assets under development including Westlite Bukit Minyak, dwell Adelaide

and an asset enhance programme at RMIT Village which are on-track to be completed in Q4 2018. These projects will add 7,040 beds to the portfolio and position us for future growth in the workers and student accommodation segments," Mr Kong said.

Separately, the board announced that Teo Peng Kwang has been appointed as an executive director and Tan Poh Hong has been appointed an independent non-executive director with effect from May 8, 2018.

Mr Teo has been chief operating officer of the group's accommodation business since August 2011 and oversees the day-to-day operations and expansion of the accommodation business, and assists in the growth and strategic planning of the group.

Ms Tan was the chief executive officer of Agri-Food & Veterinary Authority of Singapore from May 2009 to September 2017 and was responsible for the implementation of the organisation's policies and strategies.