- We reiterate an OUTPERFORM rating on Centurion (SGX:OU8) with a revised upward target price of S$0.62 due to higher enterprise value. Centurion's performance surpassed our expectations, demonstrating positive rental rate reversions and occupancy resilience against foreign exchange fluctuations.
Foreign worker dormitories and student accommodationscontinue to contribute to revenue growth.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
FY23 financials update: Boost in occupancy and rental rates.
- FY23 revenue rose 15% y-o-y from S$180.5mil to S$207.2mil. The respective FY23 financial occupancy of PBWA and PBSA were 96% and 92%, up from 90% and 86% in FY22.
- The higher contributions from strong occupancies and improved rental rates across all the PBWAs and PBSAs, alongside an increase of number of beds available for rent that came into operation helped boost Centurion’s revenue during the year. However, these positives were partially offset by the weaker British Pound, Malaysian Ringgit, and Australian Dollar against S$ which resulted in lower revenue reported in Singapore dollars.
- Despite these factors, the positives outweighed the negatives, leading to continued growth in both PBWA and PBSA segmental revenues. Higher rental rates across Centurion's properties in these four markets also contributed to the increase in revenue.
Prudent financial structure and debt management.
- Read more at SGinvestors.io.
