- We stay positive on Centurion Corp (SGX:OU8) and see growth driven by higher bed capacity, occupancy, and rental rates. Centurion is in a sweet spot for purpose built workers’ accommodation (PBWA) in Singapore, where demand for foreign workers outstrips dormitory bed supply.
- - Read this at SGinvestors.io -
1Q24’s revenue slightly ahead.
- Centurion’s latest disclosure on 1Q24 saw revenue grow 30% y-o-y to S$61m, outperforming our estimates slightly. Topline was driven by positive rental reversions and better occupancies in PBWA and purpose built student accommodation (PBSA) properties.
- - Read this at SGinvestors.io -
- The slight outperformance was largely due to better-than-expected overall occupancies and bed rates. Singapore and Malaysia’s PBWA occupancies reached 99% and 96%, while UK and Australia’s PBSA occupancies reached 99% and 90%, all of which outpaced our expectations.
- Singapore was supported by high demand, UK was lifted by shortage in PBSA supply, and Australia was buoyed by strong student arrivals last year.
Raise Centurion's FY24F-26F earnings by ~5%.
- Read more at SGinvestors.io.
