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For the first half of 2019, net profit declined four percent to $18.1 million, due to start-up costs incurred for new properties as well as higher interest expense on additional borrowings.
Centurion Corporation’s net profit for the second quarter of 2019 increased four percent to $10.2 million from $9.8 million over the same period last year.
Revenue also climbed eight percent to $32.9 million from $30.4 million last year.
In an SGX filing, the worker dormitory and student accommodation firm attributed the higher revenue mainly to contribution from the group’s newly added properties like dwell Princess Street in the United Kingdom and dwell East End Adelaide in Australia. Higher occupancy rates at its Singapore workers accommodation also contributed to the group’s better revenue performance.
The group’s properties in Westlite Bukit Minyak, Penang and South Korea, on the other hand, incurred start-up losses which affected the bottom line. Centurion noted that the two properties are currently in the midst of ramping up their occupancy.
For the first half of 2019, net profit declined four percent to $18.1 million, due to start-up costs incurred for new properties as well as higher interest expense on additional borrowings.
Revenue rose six percent to $64.2 million.
As at 30 June 2019, the company had 26,100 beds across four operating workers accommodation assets in Singapore, with average occupancy rate at 96.9 percent for the first half of 2019.
In Malaysia, Centurion has 30,700 beds across seven workers accommodation assets, with average occupancy at 90.2 percent in 1H 2019.
The group’s student portfolio stands at around 6,252 beds across 20 operational assets in the UK, US, Singapore, South Korea and Australia as at 30 June 2019.
“While the Group remains focused on niche accommodation assets within the PBSA and PBWA sectors which generate stable and recurring income streams, it will also consider opportunities to invest in new specialised accommodation types,” said Centurion.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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