Centurion posts 9% rise in Q3 revenue with strong demand for worker, student housing

The company has S$713 million in borrowings as at Sep 30, against S$434 million in cash

Centurion Corp saw revenue rise 9 per cent to S$67.5 million for the third quarter ended Sep 30, thanks to positive rental revisions across all of its worker and student accommodation properties.

Revenue for the nine months ended September was also up, by 12 per cent, to S$208.3 million, the company said in a business update on Thursday (Nov 13).

The positive showing came even as Centurion saw lower occupancy in its Malaysian purpose-built workers accommodation (PBWA) and Australian purpose-built student accommodation (PBSA) assets.

There was also a negative currency impact due to the weaker Australian dollar.

Nevertheless, Centurion noted that demand for PBWAs remains strong, supported by robust construction activity. It is developing new purpose-built dormitories with about 45,000 beds in Singapore over the next few years to meet rising foreign worker numbers.

Centurion’s 9M PBWA revenue from Singapore increased 14 per cent to S$148.5 million. This included contributions from the Westlite Ubi property, which has been fully occupied since April.

Meanwhile, student housing demand is growing faster than supply in many cities, the company noted. Centurion’s PBSA business in the UK – where it owns 10 assets – saw a 7 per cent rise in 9M revenue to S$30.7 million.

The company is “cautiously optimistic” moving forward, noting: “While inflationary pressures and interest rate environment remain uncertain amid trade tariff volatility, Centurion remains confident that its portfolio of stable, resilient assets will continue to perform well.”

It will seek opportunities to enlarge its portfolio across its living sector segments and geographically – in both existing and new markets, such as China and the Middle East.

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Centurion has S$713 million in borrowings as at Sep 30, against S$434 million in cash. Its net gearing ratio stands at 10 per cent.

Its shares ended Thursday at S$1.40, up by S$0.04 or 2.9 per cent.

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