Dormitory operator Centurion Corporation has reported revenue of $30.7 million for the 1QFY2021 ended March, 13% lower than revenue of $35.5 million in the same period the year before.
The lower revenue was mainly due to lower revenue from the Purpose-Built-Student Accommodation (PBSA) segment, which fell 38.7% y-o-y to $7.7 million.
The lower PBSA revenue was attributable to the travel restrictions due to Covid-19, particularly in Australia.
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Average financial occupancy for Centurion’s PBSA portfolio fell 29 percentage points y-o-y to 56% in the 1QFY2021 compared to the 1QFY2020’s 85%.
This excludes the US portfolio, which are held in the group’s 28.7%-owned private fund.
The lower PBSA revenue was offset by stable revenue in the Purpose Built Workers Accommodation (PBWA) at $22.8 million, supported by higher occupancy in Malaysia and revenue from the assets added in the 4QFY2020.
The assets include Westlite-PKNS Petaling Jaya in Selangor Malaysia and two Quick Build Dormitories, Westlite Kranji Way and Westlite Tuas Ave 2 in Singapore.
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Excluding the new additions, the average financial occupancy of the group’s PBWA portfolio stood 5 percentage points lower at 84% in the 1QFY2021.
The two QBDs have achieved financial occupancy of 84% for the 1QFY2021.
According to the group, the special testing operations at Westlite Woodlands have been completed and the workers residing there have returned to work.
The group adds that it has invested in additional equipment, solutions and technology to help residents adhere to safe living requirements, and to provide for its residents’ physical, emotional and social wellbeing.
Centurion says it remains positive on the long-term outlook for its globally diversified specialised accommodation portfolio due to the resilience of its asset classes and positive demand fundamentals across markets.
“The Covid-19 pandemic continues to present challenges to our occupancy, but the expansion of our portfolio by prudent asset-light means has enabled the group to moderate the impact with enlarged and diversified revenue streams,” says Kong Chee Min, CEO of Centurion Corporation.
“During this time, we will continue to focus on operational agility to optimise occupancy and rental revenues, management efficiencies for prudent financial management and cash conservation, whilst taking opportunities where strategic and sensible to enhance our portfolio of revenue generating assets,” he adds.
Shares in Centurion closed flat at 34 cents on May 11.
