Centurion has reported group revenue of $45.1 million for the 1QFY2022 ended March, 47% higher than the $30.7 million in the same period the year before.
The higher revenue was mainly driven by enlarged portfolio capacity and new business streams in the group’s purpose-built workers’ accommodation (PBWA) segment across Singapore and Malaysia, as well as healthy recovery in financial occupancy of its purpose-built student accommodation (PBSA) assets in the UK and Australia.
The enlarged portfolio capacity and new business streams led to broad-based growth across all segments during the quarter.
In Singapore, the group’s PBWA portfolio consists of five purpose-built dormitories and four quick build dormitories.
As travel restrictions were lifted over the second half of 2021, the group saw an improvement in the average financial occupancy for the Singapore PBWA assets as arrivals for dormitory-bound work pass holders resumed.
Revenue from Singapore surged by 51% y-o-y $30.6 million for the 1QFY2022, mainly due to two added quick build dormitories which commenced operations in 2Q and 4QFY2021, alongside a slight recovery in occupancy rates in purpose built dormitories.
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Management services income and accommodation-related revenue from two onboard centres, formerly known as migrant worker onboarding centres, also contributed to the higher revenue.
In Malaysia, the group’s revenue grew 3% y-o-y to $3.4 million in spite of the shortage of workers as the inflow of new workers continued to be affected by the pandemic.
In the UK, the group’s revenue surged by 56% y-o-y to $8.6 million as occupancy recovered from the current academic year which commenced in September 2021.
In Australia, revenue increased by 58% y-o-y to $1.8 million as borders had reopened to vaccinated foreign students from Dec 15, 2021. International students are progressively returning to Australia with support from pilot schemes implemented by academic institutions and state governments. The group has since seen marked recovery in the financial occupancy of its two PBSA assets in Melbourne and Adelaide.
In other markets, the demand for the group’s PBSA asset in South Korea, dwell Dongdaemun, picked up in 1QFY2022 amid growing international students’ demand for exchange and language programmes.
Centurion’s PBSA assets in the US, which has six freehold PBSAs, also saw “strong steady” occupancy numbers.
Kong Chee Min, CEO of Centurion says, “We are pleased to have started the year with broad-based improvements in revenue across our portfolio, primarily from new revenue streams from quick build dormitories and onboard centres in Singapore and recovery in occupancies from the PBSA segment.”
“The group will continue to explore opportunities to enhance its portfolio and performance, while providing a home away from home for its migrant worker and student residents. At the same time, we are cognisant of inflationary pressures and rising interest rates which may impact our business and performance and will closely monitor these developments,” he adds.
Shares in Centurion closed 1 cent lower or 2.82% down at 34.5 cents on May 11.
