SINGAPORE (Nov 12): Mainboard-listed dormitory operator Centurion Corporation saw its earnings increase 21% to $8.8 million for 3Q19 ended September, from $7.3 million a year ago.
On a fully diluted basis, this translates to earnings per share (EPS) of 1.05 cents for 3Q19, compared to an EPS of 0.87 cents logged in 3Q18.
3Q19 revenue rose 17% to $33.1 million, following its receipt of revenue contributions from new accommodation assets added into its portfolio.
These include its Westlite Juniper purpose-built workers accommodation (PBWA) in Tuas, as well as its dwell East End Adelaide purpose-built student accommodation (PBSA) in Australia.
Aside from these, higher occupancy rates in its PBWA facilities in Singapore and additional beds obtained from an asset enhancement programme in the Royal Melbourne Institute of Technology (RMIT) Village in Australia contributed to the better revenue performance.
Gross profit grew 17% to $23.2 million in 3Q19, in line with the revenue increase.
Finance expenses jumped 20% to $7.2 million during the quarter, mainly due to new borrowings to fund the group’s expansion.
As at end-September, cash and cash equivalents stood at $51.0 million, lower than $70.7 million a year ago.
This comes as some $2.3 million was used for the development of RMIT Village PBSA and the Westlite Tampoi II PBWA, which were offset with dividends received from associated companies. Another $63.6 million was used for financing activities such as the redemption of notes, and repayment of borrowings, interest and dividends.
Apart from noting its growth, Kong Chee Min, CEO of Centurion, says the company is weighing its options in terms of markets it can enter and other possible PBSAs and PBWAs it can launch or acquire.
Speaking on the latest 3Q19 results, Kong says “[the company has] seen our growth strategy in the specialised accommodation business bear fruit, with our new assets in Australia, the UK and Singapore contributing to our strong performance”.
“We have increased our portfolio of beds by 18% over the past year, which is yielding stable, recurring income streams and putting us on track to deliver growth for the full year”, he adds.
As at 9.15am, shares in Centurion are trading 1 cent higher, or up 2.4%, at 43.5 cents.
