For 1HFY2023 ended June, Centurion reported earnings of $38.3 million, up 16% y-o-y. Revenue from Centurion’s purpose-built workers accommodation (PBWA) portfolio in Singapore and Malaysia increased by 9.5% y-o-y to $73.3 million. Revenue in Singapore from this segment alone was up 4.6% y-o-y to $63.8 million. Coupled with the recovery in its student accommodation segment, Centurion’s overall revenue in the same period was up 8% y-o-y to $97.9 million.
Social distancing measures, closed international borders and paused work projects were hallmarks of the pandemic that also dwindled foreign manpower numbers in Singapore. As Covid-19-related restrictions eased in 2022, the buzz returned to work sites as new workers arrived in the country, bringing the number of work permit holders to a record of 434,000 in May — 18% higher than pre-pandemic levels in 2019.
Designated dormitories were quickly filled by the influx of migrant workers, pushing rents upwards. While contractors now have to put up with these higher costs, dormitory operators like mainboard-listed Centurion Corp (SGX:OU8
) are having their turn in the sun from this imbalance of supply and demand. The company estimates that there were about 30,000 more work-permit holders who require approved dormitory beds than available beds as at May.
