Centurion - CGS-CIMB Research 2023-08-11: Strong Rental Reversions Across Segments

• Centurion Corp (SGX:OU8)’s 1H23 core PATMI of S$33m (+14% y-o-y) was slightly above, at 52%/54% of our/Bloomberg consensus’ FY23F estimates. Key positive was stronger-than-expected margins across both purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA) segments, led by stronger occupancies and positive rental reversions.
• - Read this at SGinvestors.io -
• The PBWA segment saw a 21% PBT growth y-o-y in 1H23, led by positive rental reversions in Singapore.
  • Centurion shared that the outlook remains positive as the strong rental reversions for SG (which began in 4Q22) are being priced into new leases, and the full impact on revenue will emerge in the next 6-18 months.
  • - Read this at SGinvestors.io -
  • Centurion’s PBWA capacity additions for FY23F include 888 beds for its QBD in SG (Mar 23) and 2,196 beds from its new management contract in Johor (4Q23F). It is actively bidding for new leases in Singapore, across dormitory types, such as QBD purpose-built dorms, and healthcare worker hostels.
• The PBSA segment saw a 17% PBT growth y-o-y in 1H23, led by strong occupancy recovery in Australia (1H23: 86% vs 1H22: 58%).
  • Read more at SGinvestors.io.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Read also CGS-CIMB's most recent report:
2023-11-10 Centurion - Revenue Growth Accelerated In 3Q23.

Previous report by CGS-CIMB:
2023-10-11 Centurion - New Interim Standards For SG Worker Dorms.

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