Centurion Corporation: Strategic Expansion and Strong Performance in 3Q 2024

Centurion Corporation Limited has reported a remarkable performance in its 3Q 2024 business update, showcasing significant revenue growth and strategic expansion plans across various markets. Here are the key highlights and important updates that shareholders need to be aware of:

Performance Highlights

Centurion Corporation achieved a 22% increase in revenue for 3Q 2024, reaching S\$62.1 million, up from S\$51.1 million in 3Q 2023. For the first nine months of 2024, the company reported a 25% increase in revenue, totaling S\$186.5 million, compared to S\$149.0 million in the same period last year. This impressive growth is attributed to positive rental revisions across all Purpose-Built Workers Accommodation (PBWA) and Purpose-Built Student Accommodation (PBSA) assets, as well as strong occupancy rates in Singapore, Australia, and the UK.

Prudent Capital Management

Centurion Corporation continues to maintain prudent capital management with total assets of S\$2.0 billion and total borrowings of S\$0.7 billion. The company has ample liquidity with cash and undrawn committed facilities amounting to S\$229 million. The interest cover ratio stands at 4.5x, and the net gearing ratio is 32%, with an average debt maturity of six years.

Diversified Business Portfolio

Centurion Corporation manages a diversified business portfolio across various geographies and asset types, with a total of 66,660 operational beds spread across 34 properties in 15 cities and six countries. This includes significant assets in Singapore, the UK, Malaysia, Australia, the United States, and China.

Strategic Expansion Plans

The company is actively pursuing expansion opportunities to enhance its portfolio and meet evolving market demands. Key projects include:

• Completion of the new 1,650-bed PBD Westlite Ubi in Singapore by December 2024.
• Redevelopment of Westlite Toh Guan and Westlite Mandai in Singapore to add new bed capacities of approximately 1,764 and 3,696 beds respectively by 2026.
• Asset enhancements in Malaysia, including adding 680 beds to Westlite Senai II by end 2024 and 870 beds to Westlite Johor Tech Park by Q4 2025.
• Exploring a potential development of approximately 7,000 beds in Nusajaya, Iskandar, Johor.
• Redevelopment of dwell Village Melbourne City’s carpark into a new PBSA block of approximately 600 beds by 2026 in Australia.
• New development of approximately 732 PBWA accommodation in Macquarie Park, Sydney, with expected completion in December 2025.

Positive Market Outlook

Centurion Corporation remains optimistic about the market outlook, with strong demand and supply dynamics expected to maintain high occupancy rates and rental revisions. The company is also preparing for regulatory changes and enhancing its assets to meet new standards, such as the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) in Singapore.

Conclusion

With robust financial performance, strategic expansion plans, and positive market dynamics, Centurion Corporation is well-positioned for future growth. Shareholders should take note of these developments, as they may have a significant impact on the company’s share value.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making any investment decisions.

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