Centurion - RHB Invest 2024-05-20: More Positive On Better Occupancy Rates; Still BUY

• 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.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-05-20 SGinvestors.io

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