Centurion H1 Profit Spikes 209% on Jump in Property Valuations

Singapore’s Centurion Corp posted a 209 percent year-on-year surge in attributable profit to S$118.2 million ($89.7 million) for the first half of the year, boosted by net fair value gains of S$61.6 million.

Excluding fair value adjustments, net profit from core business operations rose 48 percent year-on-year to S$53.4 million for the six-month period, the purpose-built rental housing specialist said in a release.

“The strong first half performance is driven by strong occupancies of the group’s specialised accommodation assets and positive rental revisions, underscoring the resilience of our core business,” said Centurion CEO Kong Chee Min.

Revenue jumped 27 percent year-on-year during the half to S$124.4 million on robust occupancy in Centurion’s portfolio of student and worker dorms across Singapore, Britain and Australia, and the group reported positive rental rate revisions across all operating markets.

Singapore Worker Demand

Occupancy in Singapore edged up to 99 percent in the first half of 2024 from 98 percent a year earlier on continued demand for migrant workers amid a tight supply for dormitory beds, supporting strong growth across the group’s nine worker housing assets in the city-state, Centurion said.

The group is developing a new 1,650-bed worker dorm in the Lion City’s eastern-central area, dubbed Westlite Ubi, with a target completion date in December.

In Australia, Centurion plans to redevelop the existing car park at its Dwell Village Melbourne City into a new student housing block of 600 beds. The group is also considering redevelopment of existing blocks at the property to enhance the asset.

Elsewhere in Victoria’s capital, Centurion is looking at an opportunity to seek planning approval for a site near RMIT University Melbourne for a 575-bed accommodation. The group plans to continue seeking opportunities for portfolio expansion, including development projects, in key Australian cities.

Exploring Hong Kong

Centurion entered the Hong Kong student housing market in the first half of the year with a pair of master-leased properties now undergoing refurbishment. The two assets — the 66-bed Dwell Prince Edward and the 89-bed Dwell Ho Man Tin — are located in Kowloon and scheduled to begin operations in September.

In July, the group secured a third master lease for a 550-bed worker housing facility in the New Territories, known as Westlite Sheung Shui, which is expected to start operating in November.

Kong said the entry into Hong Kong was part of continued efforts to capitalise on new growth markets while expanding Centurion’s foothold in existing markets.

“We will continue to make concerted efforts to enhance our portfolio, expanding our revenue streams to deliver sustained strong performance,” the CEO said.

Centurion’s overall bed capacity is forecast to grow by 2,393 beds in fiscal 2024, representing a capacity expansion of 4 percent.