Dorm operator Centurion H1 profit jumps 209% on fair-value gains

SINGAPORE - Centurion Corporation posted a 209 per cent rise in net profit to $118.2 million for its first half ended June 30, from $38.3 million in the previous corresponding period.

Net profit was boosted by fair-value gains of $61.6 million in the half-year period, the dormitory operator said in a regulatory filing on Aug 12.

Earnings per share stood at 14.06 cents for the period, up from 4.56 cents the previous year.

Revenue for the first half rose 27 per cent to $124.4 million, from $97.9 million a year earlier. This was due to strong financial occupancies from its purpose-built workers accommodation and purpose-built student accommodation portfolio – especially across Singapore, Britain and Australia – as well as positive rental rate reversions across all operating markets.

An interim dividend of 1.5 cents per share was declared for the half year, up from one cent per share the year before. The dividend will be paid out on Sept 30, after books closure on Sept 10.

The company said it has continued to strategically review and rationalise its assets, assessing opportunities for capital recycling and portfolio expansion.

In Singapore, it is developing a new purpose-built workers accommodation with around 1,650 beds, to be completed by December 2024.

It has planned asset enhancement initiatives in Malaysia, while it is also aiming to redevelop some assets and expand its portfolio in Australia.

The company also entered China’s purpose-built student accommodation portfolio in the first half, with two assets in Hong Kong expected to be operational in September.

Its chief executive Kong Chee Min said: “We will continue to make concerted efforts to enhance our portfolio, expanding our revenue streams to deliver sustained strong performance.”

Shares of Centurion rose 0.8 per cent, or 0.5 cents, to end at 64 cents on Aug 12, before the results were released.

THE BUSINESS TIMES