Centurion Corporation OU8 has reported earnings of $38.5 million for the 2HFY2022 ended Dec 31, 2022, 12% lower y-o-y as other income, share of profit of associated companies and joint ventures (JVs) and net fair value gain on investment properties fell. The group’s expenses for the half-year period also grew, offsetting the higher revenue.
This brings FY2022 earnings to $71.4 million, 36% higher y-o-y amid growth in revenue and higher net fair value gain on investment properties.
FY2022 revenue increased by 26% y-o-y to $180.5 million due to revenue growths across all segments and due to higher financial occupancies across the group’s markets. The higher revenue was also due to higher contributions from four new quick build dorms (QBDs) compared to the two new ones in FY2021.
FY2022 revenue from the group’s Westlite accommodation purpose built workers accommodation (PBWA) segment increased 23% y-o-y to $134.7 million due mainly to strong revenue contributions in Singapore with the reopening of the Singapore borders and easing of Covid-19 restrictions during 2022.
Financial occupancy of the group’s Singapore purpose-built dormitories improved by 12 percentage points y-o-y to 97% in FY2022.
The group’s dwell student living purpose built student accommodation (PBSA) segment rose 38% y-o-y to $44.2 million due to the lifting of travel restrictions and a return of international students underscored by shortfalls in PBSA bed supply.
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Average financial occupancy of the group’s PBSA assets in the UK rose by 18 percentage points y-o-y to 90% in FY2022 while average financial occupancy of the PBSA assets in Australia rose by 47 percentage points y-o-y to 73% in FY2022.
Gross profit grew by 31% y-o-y to $123.6 million in FY2022 in tandem with the higher revenue.
In the FY2022, the group recognised a net fair value gain of $19.0 million from FY2021’s loss of $3.1 million. The gain is mainly due to its investment properties in UK, Malaysia and Australia, offset against the fair value loss of investment properties in Singapore as well as against the adjustment of fair value of the right of use (ROU) investment properties.
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Earnings per share (EPS) for the FY2022 stood at 8.50 cents.
Cash and cash equivalents as at Dec 31, 2022, stood at $66.6 million.
A final dividend of 0.5 cent has been recommended, bringing the FY2022 dividend to 1 cent per share. The dividend will be paid on May 31.
“The group has delivered strong full-year results in 2022, which reflect the resilience and sustainability of our core business. With the continued return of foreign workers and international students across our markets, we have been able to grow our occupancies and rental rates, effectively cushioning increases in operating costs and finance expenses,” says CEO Kong Chee Min.
“We will continue to monitor and moderate the impact of the dual headwinds of inflation, including energy costs, and interest rate escalation. While we focus on providing a safe, caring and inclusive home-away-from-home for our migrant worker and student communities, the group will also continue to explore opportunities to expand and enhance our portfolio of owned and managed assets, to deliver sustainable long-term value to our stakeholders,” he adds.
Shares in Centurion closed 0.5 cent higher or 1.37% up at 37 cents on Feb 28.
