- Centurion reported a 45% increase in core net profit of S$111m for 2024, supported by strong rental revisions and higher occupancies across both PBWA and PBSA asset classes.
- Management noted persistent supply-demand imbalances that underscored its pricing power during lease renewals, as well as a favourable macro backdrop in Singapore’s PBWA segment.
Better-than-expected earnings assisted by fair value gains.
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- Importantly, core net profit excluding fair value gains of S$111m (+45% y-o-y) beat our and consensus estimates due to positive rental reversions across both Purpose Built Workers’ Accommodation (PBWA) and Purpose Built Students’ Accommodation (PBSA) while cost of sales stayed flat, thus leading to a 5ppt y-o-y improvement in gross margin.
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- In our view, its average long-term debt maturity profile remains comfortable at six years while interest coverage ratio improved to 4.4x (end-23: 3.6x).
Dividend payout ratio maintained.
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