SINGAPORE (May 9): Centurion Corp reported a 15% fall in 1Q earnings to $9.1 million from $10.7 million a year ago due to lower revenue.
Group revenue for the quarter fell 17% to $30.1 million due to the expected expiry of the lease on Westlite Tuas in Singapore which ceased operations in Dec 2017.
This was however partially offset by higher contributions from the group’s workers accommodation portfolio with ASPRI-Westlite Papan and the six operating workers accommodation assets in Malaysia, which Centurion says reported stronger average occupancy of close to full and approximately 91% in 1Q18, respectively.
Administrative expenses fell 17% to $4.8 million in the the absence of the non-recurring cost of professional fees for the dual primary listing on the Hong Kong Stock Exchange in 4Q17.
Finance expenses grew 17% to $4.6 million from $4.8 million a year ago as a result of the group’s issuance of its Series 3 Multicurrency Medium Term Notes in April last year.
Share of profit of associated companies grew 19% to $1.7 million due to the group’s share of profits from its 28.74%-owned US fund, which launched in 2017.
Centurion’s gross profit margin grew to 72% as compared to 67% a year ago, due to the absence of an amortisation cost in the previous year.
As at end March, cash and cash equivalents grew to $4.3 million from $3.5 million a year ago.
“While the performance was lower due to the lack of Westlite Tuas’ contribution, the performance of our existing portfolio of assets remained strong in 1Q 2018,” comments Kong Chee Min, CEO of Centurion.
“The group also has a steady pipeline of assets under development including Westlite Bukit Minyak, dwell Adelaide and an asset enhance programme at RMIT Village which are on-track to be completed in 4Q18. These projects will add 7,040 beds to the portfolio and position us for future growth in the workers and student accommodation segments,” he adds.
Shares in Centurion closed 1.1% lower at 46 cents on Tuesday.
