- We raise our target price for Centurion to S$0.62 after a robust 1H23 performance that saw strong occupancy and rental rates continuing to improve. We expect growth ahead, driven by better capacity, occupancy, and rental rates, as we see scope for these matrices to improve going forward.
- - Read this at SGinvestors.io -
- Keep BUY rating on Centurion with higher S$0.62 target price from S$0.51, 43% upside and ~2% yield.
1H23 above estimates.
- - Read this at SGinvestors.io -
- Occupancy remains strong – at close to full capacity – in Singapore, followed by 94%, 92%, and 86% in Malaysia, the UK, and Australia.
- Both gross (72%; +4.6ppts) and operating margins (58%; +6.4ppts) improved on operating leverage. This was offset by higher-than-expected finance costs, which brought core earnings to S$34m (+30% y-o-y).
- An interim dividend of S$0.01 was declared, representing a payout ratio of more than 20%, i.e. above expectations. See Centurion's dividend dates.
Positive on rental rates and higher bed capacities going forward.
- Read more at SGinvestors.io.
