Centurion Corp Ltd *Official* (SGX: OU8)

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Accommodation for workers and students more than just a roof and four walls for Centurion Corp

Accommodation for workers and students more than just a roof and four walls for Centurion Corp

https://www.theedgesingapore.com/bi...ation-workers-and-students-more-just-roof-and

Specialised accommodation operator Centurion Corp prides itself in offering residents more than a roof and four walls. So, its priority was for residents to be as comfortable as possible when its Westlite Toh Guan purpose-built workers’ accommodation (PBWA) facility was gazetted as an isolation site in April, due to the number of coronavirus infections there.

“Our first impression was that everybody must be happy,” CEO Kong Chee Min recounts in an interview with The Edge Singapore. “When residents are unhappy, there may be unrest,” he adds.

While Kong and his team already had a pandemic management plan developed based on the experience from SARS in 2003 and the Bird Flu in 2009, they had much to do before the lockdown took effect. Their immediate focus was to take care of their residents’ needs. This included ensuring they had an adequate supply of food, explaining what a lockdown meant, addressing concerns on whether they would still be paid, and updating employers on what was happening on the ground. To put residents at ease, they also distributed face masks and food rations such as instant noodles, biscuits and bread.

“It was a massive task and we had to act fast,” mulls Kong, adding that his team also had received many requests from residents to facilitate once they were notified of the lockdown. This ranged from wanting to purchase a list of items at the supermarket, to needing assistance to pass things to their employers.

On a dormitory-wide level, the team enforced safe distancing by bubbling residents based on the floor they were living on. The intent was to avoid co-mingling among residents, as the coronavirus had been spreading through people who were seemingly normal and asymptomatic. For further precaution, healthy residents were segregated from those who were seemingly unwell, to prevent any possible infection transmission. Such a move was a key learning point for the team, as the spread of the coronavirus infection was unlike what was seen in previous pandemics, says Kong.

Westlite Toh Guan is one of the five PBWA dormitories under Centurion’s portfolio in Singapore, which has approximately 28,000 beds. This number will increase to around 34,400 as the company was recently awarded a tender by JTC Corp to lease and manage up to 6,400 beds in four new foreign workers’ dormitories. This is part of the new Quick Build Dormitories (QBDs) that have been set up to expand the living spaces for foreign workers.

Across the causeway, Centurion runs another eight such worker facilities, with a total of approximately 35,700 beds. These include a recent master lease from Perbadanan Kema- juan Negeri Selangor (PKNS), or the Selangor State Development, to manage over 5,000 beds in a PBWA situated in Petaling Jaya. This foray marks Centurion’s entry into the central region of Peninsular Malaysia, beyond Johor and Penang where it already has a presence in. When a ninth dormitory is completed in FY2021, there will be 3,600 more beds added to the PBWA portfolio.

At this year’s Centurion Club awards, Centurion has been named the overall winner in the real estate industry sector.

More than just a home

To better support residents across its PBWAs in Singapore, Centurion leveraged on MyMA — its proprietary app launched in early 2019. Originally developed to ease and enrich the information and lifestyle needs of Westlite’s foreign worker residents, the app has since been enhanced with features to support needs arising from the Covid-19 situation.

The mobile app now allows foreign workers to access the three government apps for monitoring their health, work status and movement records from a single page on MyMA. This helps worker residents and their employers to track and manage the workers’ movements to and from the dormitories, explains Kong.

Other features added on MyMA during this time include: recording twice-daily temperature readings, which can then be reviewed by dormitory management and the workers’ employers; checking in and out of the dormitory; remittance services; ordering of groceries from the dormitory’s supermarket; as well as access to movie subscriptions, games and contests to combat cabin fever.

Aside from this, Centurion doubled its staff strength to around 60 at each PBWA, to better see to residents’ needs. Staff on the ground include security offices and cleaners, who had to ramp up cleaning of high-touch-point areas. A team was also set up to engage the residents and tide them through this period of low morale. This group helped keep the spirits of the residents high with virtual games. They also organised competitions rewarding the cleanest room and most creative greeting, during festivals like Hari Raya and Deepavali.

These efforts are part of Centurion’s mission to provide residents with a home away from home. And to see to this, Kong and his team have no qualms rolling up their sleeves or lending a listening ear. One such instance was when Kong supported a worker’s return home shortly after the “circuit breaker” measures were lifted in Singapore. The resident had resigned from his job and bought a ticket to his country, without realising that he would need to get clearance to travel and undergo a stay- home notice order. “He was so worried and looked like he was about to cry at the thought of not being able to go home,” recalls Kong, who liaised with the resident and the relevant authorities to facilitate his return home.

Meanwhile, the company’s unique offerings can also be seen in the design of its PBWAs, which have the same mould as a housing development board (HDB) estate. Residents are housed in units with — depending on the size of the dormitory — a capacity of between eight and 16 beds within an apartment unit. Each unit has its own kitchen, living and dining area, toilets and showers. The dormitories also boast amenities like food courts, minimarts, clinics, barber shops and automated teller machines so that the residents do not have to venture far for their daily needs. Other facilities provided include indoor gyms, reading and game rooms/courts to cater for the physical and mental well-being of the residents.

Students’ dwellings

Centurion’s motto of providing more than a home, is also put into practice at the company’s purpose-built students’ accommodation (PBSA) facilities. The company owns a portfolio of around 6,400 beds mainly in the UK and US, but also in Australia, South Korea and Singapore.

At the height of the Covid-19 pandemic in April, residents at Centurion’s PBSA properties in the UK were given the option to pre-terminate their leases. Kong estimates this to have reduced its revenue for the 2019/2020 academic year by around GBP3.1 million ($5.6 million). Still, Kong says this was the right call to make, given the uncertainty in the global economy and high levels of retrenchment and unemployment.

“We are a long-term player, so we wanted to create goodwill in the industry,” explains Kong. He reckons that various stakeholders have benefitted from this — with students’ financial strain easing and universities having a positive image.

When the pandemic started early this year and dormitories here became hot spots, operators such as Centurion came under the spotlight for allegations that they have been raking in profits at the expense of the residents. On the surface, this may have appeared to be the case, as Centurion’s earnings for the year ended December 2019 (before the pandemic hit) were lifted by a one-off revaluation gain on its asset. The company had to publicly put the number into proper context.

Since then, like for many other businesses, the company’s financial results have been affected by the slowing economy. In its business update for 3QFY2020 ended Sept 30, Centurion reported revenue of $29.4 million, down 11% y-o-y. A substantial drag came from the lower occupancy levels at its PBSA properties in the UK. Overall, the segment’s revenue came in at $6.2 million, down 39% from the $10.2 million logged in 3QFY2019.

A further depression in the company’s PBSA revenue was mitigated by the stable performance of its PBWA portfolio, which recorded a 1% growth in income to $22.8 million, from $22.6 million in the previous year. The company also enjoyed revenue contributions from a newly added management service contract from JTC Corp in Singapore, as well as its dwell Archer House PBSA in the UK which
commenced operations in 4QFY2019.

Even with the near-term impact on revenue, there are still analysts who like this stock. UOB Kay Hian analyst Nicola Ho notes that Centurion has a “business model which provides good earnings visibility, with contracts typically being 12 months long and with rent payments collected in advance”. This reduces the risk of non-collection, she explains.

Occupancy levels across Centurion’s PBWAs — particularly in Singapore — are slated to remain healthy, as sectors such as construction and oil and gas which are less reliant on migrant workers are less susceptible to a Covid-19-induced recession, reckons Ho.

As for its PBSAs, she notes that only a “small number”, such as one property in Melbourne, Australia, and a few in Manchester in the UK, have been affected by a new wave of Covid-19 infections. “These properties account for less than 4% of Centurion’s total capacity by bed count, and the occupancy dips are also expected to be temporary and should re- cover as soon as local movement restrictions are relaxed,” adds Ho.

Centurion appears to have a sustainable business model that is seemingly resilient against the Covid-19 health-cum-economic crisis. This should provide comfort to Kong and Centurion’s stakeholders, just as the company looks to do in its service to residents at its PBWAs and PBSAs.

 

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DBS puts a hold on Centurion, but expects a pickup in operations in FY2021

DBS puts a hold on Centurion, but expects a pickup in operations in FY2021

https://www.theedgesingapore.com/ca...ld-centurion-expects-pickup-operations-fy2021

DBS Group Research is maintaining its ‘hold’ call on dormitory operator Centurion Corp, but at a slightly lower target price of 38 cents.

This is down a cent from its previous 39 cent call and is believed to give the counter a 12% upside from its 34 cent price on Feb 26, analysts Woon Bing Yong and Lee Keng Ling say in a Mar 1 research note.

Their move follows Centurion’s recent earnings announcement for FY2020 ended December in which its revenue was in line with their forecast, while earnings came below expectations.

Revenue came in at $128.4 million, down 3.7% y-o-y, while earnings was down 82.8% to $17.2 million.

The lower earnings were mostly attributed to a fair value loss of $30.4 million recorded on investment property. Comparatively the segment had posted gains of $61.5 million in the previous year.

Still, Woon and Lee note that the occupancy levels at the operator’s purpose-built workers’ accommodation (PBWA) facilities in Singapore remained resilient, albeit declining to 93.9% in FY2020.

This follows de-densification efforts as well as a return of some migrant workers to their hometown.

Across the border in Malaysia, PBWA occupancies was at 79.7% in FY2020 as newly opened dormitories were still ramping up operations. For comparison, occupancy levels was 93.2% among Malaysian PBWAs excluding Westlite Bukit Minyak in FY2019.

The tide is turning however, with the enforcement of the Amendment to the Workers’ Minimum Standards of Housing and Amenities Act.

“We think that the government believes PBWAs are an effective measure for quarantine and controlling the pandemic,” mull Woon and Ling.

“Malaysia has a large undocumented immigrant population in the millions and so a stronger enforcement of the act would be positive for dormitories”.

Meanwhile, occupancy levels at Centurion’s purpose-built student accommodations (PBSAs) took a hit as border closures disrupted student travel, while measures imposed locally reduced the incentive for students to stay in campus.

As such, occupancy levels at Centurion’s PBSAs in the UK and Australia tumbled to 69.7% and 54.0% respectively.

Woon and Ling are however noticing an improvement in the outlook for PBSA occupancy levels in the UK and Australia, as vaccinations efforts are being ramped up in both countries.

For instance, they observe that vaccination appears to be progressing well in England, and it is slated to lift restrictions in June.

Over in Australia, the Covid-19 case count remains low. Enrolments at Australian universities have remained high at 684,000, but is down 9% from the year before.

And while arrivals of international students have plunged by 99% on year, the analysts say that “the high enrolments points to strong student accommodation demand once restrictions are lifted”.

However, the analysts point out another problem going forward: Centurion will be not be receiving grants from the Singapore government, which were estimated to support core net profit to a tune of some $7.8 million in FY2020.

They add that the operator could face a drop in the employment of migrant workers as a result of the discontinuation of the foreign worker levy waivers provided in Singapore in 2020.

Still, Woon and Ling say that the company can possible additional revenue of $12 million in FY2021 ended in December from the leases it has secured to operate four quick-build dormitories (QBDs) in Singapore. These will offer some 6,400 beds.

Against this backdrop, the duo expect Singapore’s PBWA occupancies (excluding of the 4 QBDs) to dip to 84%, while that in Malaysia is slated to rise to 83% (excluding the new PKNS Petaling Jaya and Westlite Tampoi II)

The average PBSA occupancies for UK and Australia are also projected to improve to 74% and 67% respectively, driven by a pickup in occupancies in 2H2021.

In line with this, the analysts have revised their FY2021 earnings up by 3% to account for the additional contributions from the four QBDs in Singapore, Westlite Tampoi II and PKNS Petaling Jaya in Malaysia.

As at 4.19pm, shares in Centurion were down 0.5 cents or 1.47% to 33.5 cents.

 

[Dyhalt]

Looking back in hindsight a year later the decision to exit was a really good call back then... stock price had dropped almost 30% from a year ago.

Now its probably a good time to reevaluate and load up on industry that's posted to recover post covid. Jiak and load up gradually from 0.335.

Just as the saying goes, when everyone is bearish its time to get bullish again.

Cheers

 

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Measures put in place at Westlite Woodlands dormitory after 17 recovered workers test positive for COVID-19 again

https://www.channelnewsasia.com/new...estlite-woodlands-dormitory-covid-19-14672690
SINGAPORE: Measures have been put in place at Westlite Woodlands dormitory after 17 workers who recovered from COVID-19 tested positive again for the disease, the Ministry of Health (MOH) said in a news release on Thursday (Apr 22).

They were detected following special testing operations at the dormitory, after a 35-year-old Bangladeshi worker staying there was confirmed to have the virus on Monday.

The workers were immediately isolated and taken to the National Centre for Infectious Diseases.

To prevent and contain the possible spread of infections, quarantine orders have been imposed on workers at the affected blocks at Westlite Woodlands dormitory. The extent of special testing operations have been expanded to the entire dormitory, MOH said.

Movement out of the dormitory will also be restricted until the testing results are out.

Residents who have recovered from COVID-19 are also no longer exempt from routine testing.

This comes after it was announced that 11 workers at the dormitory had tested for COVID-19 on Wednesday.

The ministry, together with an expert panel comprising infectious diseases and microbiology experts, are investigating if the workers have been re-infected, or if they are “persistent shedders” from their earlier infections.

SOUTH AFRICAN VARIANT

Speaking at a press conference by the multi-ministry task force for COVID-19, the health ministry’s director of medical services Kenneth Mak said the 35-year-old worker had the B1351 variant of the virus, known as the South African variant.

He works in the marine industry and was exposed to potentially infectious sources from ships visiting Singapore, Associate Professor Mak said.

The worker had already received two doses of the COVID-19 vaccine.

Assoc Prof Mak added that none of the 17 who had tested positive for the virus again had been vaccinated before.

Responding to a question on vaccination rates among workers, Assoc Prof Mak also specified that in the construction, marine and process sector, more than 8,000 workers have received the first dose of the vaccine, while about 34,000 workers have received their second dose.

He added that authorities are still working towards vaccinating as many workers as possible.

Second Minister for Manpower Tan See Leng added that after the case was detected, about 30 of this worker’s close contacts and colleagues had been isolated, with all of them placed under quarantine.

One of the people placed under quarantine, who is a roommate of this case, was found to be COVID-19 positive at a dedicated quarantine facility.

In addition, as a precautionary measure, special testing operations were carried out and around 1,200 workers at the dormitory were tested and placed under quarantine.

 

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Analysts mixed on prospects of Centurion Corp​

https://www.theedgesingapore.com/capital/brokers-calls/analysts-mixed-prospects-centurion-corp
UOB Kay Hian (UOBKH) is maintaining its ‘buy’ call on Centurion Corp but at a revised target price of 43 cents.

This is 1.5 cents lower than its previous 44.5 cent call and is believed to give the counter a 28.4% upside from its 34 cent price, analyst Adrian Loh writes in an Aug 18 note.

“We used a target P/B (price-to-book) multiple of 0.6x which is in line with Centurion’s past five-year average P/B of 0.61x, which we believe is fair. Currently, it trades at 0.44x P/B which is >1.5SD below its five-year average.

Loh believes that Centurion will be trading at 9.0x 2022 P/E (price-to-earnings) at his price target.

His move follows the dormitory operator’s 1H21 results. Revenue was down 3% y-o-y to $64.7 million while gross profit fell by 10% y-o-y to $43.6 million.

In line with this, gross profit margin was just over 67%, a 5 percentage point decline from the previous year.

Loh says the group’s 1H21 revenue and gross profit make up 51% and 53% of his full-year estimates respectively.

Overall, PATMI (profit after taxes minus interest) plunged by 58% y-o-y to $8.7 million following net fair value losses of $14.5 million on its investment properties.

“Centurion’s in line 1H21 results showed a decent level of resilience now that vaccination rates have reached very high levels in its key market segments, and thus have had a positive knock-on effect on economic activity,” says Loh.

He believes the group’s earnings have troughed and outlook remains solid.

However, Loh points out that costs at Centurion’s purpose-build workers’ accommodation (PBWA) have increased by 15% y-o-y as more staff are needed on the ground to ensure that safe management measures are being adhered to.

The group has been dampening these costs with technology.

The management says the group has not been significantly impacted by the Covid-19 clusters at its PBWA assets at Juniper and Mandai.

With only parts of the dormitories been putting shut off, the Centurion team does not expect any significant cash impact or termination of leases.

Analysts from DBS Group Research expect demand to return progressively at the group’s PBWAs in Singapore once the Manpower permits the entry of migrant workers from high risk countries.

“Given that a vast majority of foreign workers hail from countries that are high risk, we think demand for Singapore PBWAs and in turn occupancies will improve from the 82% in 1H21 but may not exceed the 90% occupancy level,” they add.

On the other hand, the group’s purpose built students’ accommodation (PBSA) assets in Singapore and Australia remained in the doldrums in 1H21.

The asset in Melbourne has been affected by poor occupancy following the restrictions on international students’ travel. Meanwhile, its asset in dwell Selegie in Singapore was hit by the extension waiver of its third final two-year lease.

DBS’ analysts do not foresee improvements in the occupancy levels in the Australian PBSA due to the new restrictions.

However, they note that the relaxation of restrictions in the UK bodes well for the groups’ PBSAs there.

Going forward, UOBKH’s Loh and analysts from DBS say that green shoots of recover can be seen following the easing of Phase 2 (Heightened Alert) restrictions in Singapore and the lifting of movement restrictions from July 19 in the UK.

The group also stands to gain from healthy occupancy levels at its PBWAs in Malaysia.

Its biggest challenge is the uneven resumption of work and university on-campus programmes as there are varying levels of vaccination rates, movement control restrictions and lockdown policies across its geographic segments.

To this end, Loh has downgraded his full-year earnings forecast by 34% to take into account the fair value loss.

“Our net profit estimate for 2021 is skewed towards a higher bottom-line in 2H21 given that out of the company’s full-year guidance of 8,488 new beds in 2021 (growth of 12% yoy), Centurion has seen 3,840 or 45% of the total come online in 1H21,” he elaborates.

Meanwhile, DBS’ analysts are maintaining a ‘hold’ call on the counter at a 38 cent target price.

Shares in Centurion closed flat at 33.5 cents on Aug 18.

 

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https://www.theedgesingapore.com/ca...obkh-following-resiliency-and-recovery-3q2021

 

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RHB upgrades Centurion Corp to 'buy' as it expects its financial performance to improve further​

https://www.theedgesingapore.com/ca...-it-expects-its-financial-performance-improve
RHB Group Research analyst Jarick Seet has upgraded his recommendation on Centurion Corp to “buy” from “neutral” following Centurion’s release of its results for the FY2021 ended December on Feb 24.

During the year, Centurion saw core PATMI increase 13% y-o-y to $46.5 million.

FY2021 revenue grew 11% y-o-y to $143 million mainly thanks to the four quick-build dormitories (QBDs) and two migrant worker onboarding centres (MWOCs) in Singapore, and a purpose-build worker accommodation (PBWA) facility in Selangor, Malaysia, notes Seet. Centurion’s UK student accommodation occupancy rate also rose to 82% in the 2HFY2021, from the 53% in the same period the year before.

In his report dated March 9, Seet says he expects Centurion’s numbers to “point to a continued recovery” in FY2022, as he raises his target price estimate to 38 cents from 36 cents.

“Centurion’s business has been resilient throughout the pandemic, and we expect its financial performance to improve further as Covid-19 infections stabilise and subside. As such, we upgrade our stock recommendation to ‘buy’, and expect PATMI to grow by 12% y-o-y this year,” writes Seet.

The analyst has also given Centurion an environmental, social and governance (ESG) score of 3, which is on par with the median score of the Singapore-listed stocks covered by the brokerage.

In Singapore, Seet says Centurion’s new assets should further boost its revenue streams. At the same time, he expects occupancy rates to recover gradually from the recovery of migrant worker numbers in the construction, marine and processing industries.

In addition, he also expects rental rates from Centurion’s properties to remain resilient in FY2022.

In Malaysia, Seet notes that the demand for “good-quality and well-planned worker accommodations is expected to increase”.

“We [also] expect its business in Malaysia to continue to fare well,” he adds.

Finally, Centurion’s UK student accommodation business is expected to see a further recovery in its occupancy rate, especially when the pandemic stabilises even more, says Seet.

Seet’s new target price represents an FY2022 yield of 7%.

As at 1.56pm, shares in Centurion are trading flat at 33.5 cents.

 

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DBS is expecting Centurion to come back as a dividend play​

https://www.theedgesingapore.com/ca...s-expecting-centurion-come-back-dividend-play
DBS Group Research analysts Woon Bing Yong and Lee Keng Ling have kept a “hold” rating on Centurion Corporation with an increased target price to 42 cents from 38 cents. DBS will also be suspending coverage on the stock as it reallocates research resources.

In light of increased global opening as restrictions due to the Covid-19 pandemic ease, Singapore’s purpose-built worker accommodation (PBWA) occupancies are expected to improve progressively over FY2022 ending December 2022 and FY2023. According to a senior government official, this comes at a point where the foreign labour crunch is targeted to be resolved in the next few months as well.

At the same time, a new academic year coupled with the relaxation of border restrictions in Australia and the UK should mark a point of recovery for student arrivals and thereby purpose built student accommodation (PBSA) occupancies, the analysts expect.

The analysts foresee Centurion to return as a dividend play, underpinned by improved occupancies across its PBSA and PBWA segments. FY2022 and FY2023 dividend per share (DPS) are projected to come in at 1.5 cents and 2 cents respectively, representing a yield of 4.2% and 5.6% respectively.

On the other hand, the analysts are wary about the group’s capex moving forward due to new regulations for workers’ dormitories set by the government, which includes an expected reduction in capacity at the group’s worker dorms.

Although the analysts claiming that early information resulting in rental rates steady, the group is expected to incur additional capex to adapt the dormitories to the new standards. Instead of an upfront lump sum capex, Woon and Ling believe that this will likely be something that will take place over a period of time.

Some key risks the analysts note include unfavourable changes in regulatory environment, foreign exchange volatility, sustained deterioration in economic outlook for Singapore and Malaysia affecting foreign worker demand and possible re-implementation of border restrictions.

As at 3.29pm, shares in Centurion are trading at 1 cent higher and 2.82% higher at 36 cents at a FY2022 P/B ratio of 0.4x and 4.2% dividend yield.

 

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Centurion acquires student accomodation in UK for $18 mil as market recovers​

https://www.theedgesingapore.com/ne...tudent-accomodation-uk-18-mil-market-recovers
Centurion Corporation plans to acquire a student accommodation asset in the UK for 10.445 million pounds, or some $17.95 million, as it taps the recovery of this property sector.

The freehold 103-bed property is in Nottingham, United Kingdom, and will enlarge Centurion’s purpose built student accommodation portfolio to 2,910 beds in 11 assets across 5 cities.

Besides this latest Nottingham property, Centurion’s other existing assets are in Manchester, Liverpool, Bristol and Newcastle.

The Nottingham property was built in 2018 and is operating as The Orbital will be rebranded as dwell Orbital upon completion of the acquisition. It is sited at a short walk to Nottingham Trent University and accessible to the University of Nottingham as well.

“The new asset is expected to be accretive upon the proposed acquisition’s completion, and we will be able to further tap on management synergies in Nottingham and the UK,” says Centurion CEO Kong Chee Min (picture).

Centurion’s two existing student accommodation properties in Nottingham are enjoying “close to full occupancy” for the academic year that began last September.

Centurion shares, as at 10.44am, traded at 35.5 cents, up 1.43% thus far today.

 

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Centurion's Westlite to expand in Malaysia​

https://www.theedgesingapore.com/news/company-news/centurions-westlite-expand-malaysia
Westlite Accommodation Malaysia, an owner-operator of Purpose-Built Workers Accommodation (PBWA) or Centralised Accommodations, today announced plans to increase its PBWA capacity in Malaysia to cater to the growing needs of multinational companies, small and medium enterprises and human resource agents there.

Westlite is the management platform of Centurion Corporation.

Following the completion of its reconfiguration exercise in December 2021, all Westlite PBWA assets in Malaysia are in compliance with the new regulatory specifications set out in the Workers’ Minimum Standards of Housing and Amenities Act 2019 (Act 446), which is aligned with the International Labour Organisation (ILO) standards.

All the dormitories in Westlite’s portfolio have since received the Certificate of Accommodation from the Department of Labour Peninsular Malaysia or Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM). Act 446 was passed in July 2019 and became fully enforceable at the end of 2021 following extended grace periods given by the Malaysian government due to the challenging Covid-19 situation.

The amended act made it mandatory for employers across all sectors to provide accommodation for migrant workers that meets the minimum standards specified by Act 446. This includes the provision of utilities and amenities such as a bathroom, toilet, bed and mattress, a locked cupboard as well as sufficient space for cooking, resting and eating.

“Westlite is always exploring ways to grow organically by reconfiguring spaces to increase capacity. In 2Q2022, asset enhancement works carried out at Westlite Tebrau for instance added 688 beds to the portfolio. With more employers including SMEs striving to comply with Act 446, we expect to see a growth in demand for high-quality, thoughtfully constructed and professionallymanaged worker accommodations. This would also benefit the human resource agents who now need to ensure that they are adequately housing the foreign workers whom they bring into Malaysia, said Kong Chee Min, CEO of Centurion.

Westlite’s Malaysian portfolio currently comprises eight Westlite Accommodation properties located across Johor, Penang and Selangor. These states have the highest number of foreign workers in the manufacturing sector – which dominates the number of foreign workers – contributing to around 35% of the country’s estimated 2 million foreign workforce. With the reconfiguration works for Act 446, the bed count capacity of Westlite’s Malaysian PBWA portfolio has consequently been reduced to 25,099 beds (as at June 30).

“Our strength lies in understanding the needs and challenges of the government, regulators, businesses and the local communities. We are fully supportive of Act 446’s enforcement, however, we recognise that not all employers are equipped to prepare accommodations and housing for their employees that meet the minimum standards in basic amenities, hygiene and safety. Thus, we are looking to provide employers especially SMEs with a safe, secure and efficient solution to foreign workers’ management and accommodation needs,” says Alfred Lee, deputy head workers accommodation and country head of Malaysia for Centurion.

Shares in Centurion closed 1.5 cents lower on Sept 13 at 40 cents.

 

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Centurion’s revenue increases by 35% y-o-y to $134.9 mil for 9MFY2022 amid healthy rental rate reversions​

https://www.theedgesingapore.com/ca...-y-1349-mil-9mfy2022-amid-healthy-rental-rate
For the 9MFY2022 ended September, Centurion Corporation’s revenue witnessed a 35% increase to $134.9 million from $100.0 million in 9MFY2021.

In its Nov 1 statement, main revenue growth drivers were attributed to strong occupancies in Singapore’s purpose-built workers accommodation (PBWA) and the purpose-built student accommodations (PBSA) in UK and Australia, along with continued demand recovery in Malaysia in the 3QFY2022.

First, the PBWA segment’s revenue in Singapore was boosted by contributions from the four quick build dormitories (QBDs), where two commenced operations in the 2HFY2020 and the other two commenced operations in the FY2021.

The average financial occupancy for the group’s five purpose-built Dormitories (PBDs) was 97% for 9MFY2022 as compared to 84% for 9MFY2021. Including the four QBDs, average financial occupancy for the group’s nine PBWAs was 97% for the 9MFY2022.

The group’s management services contracts for two onboard centres also expired, and the group has returned the properties to the government.

Next, the revenue growth from the group’s PBSA segment continued to outpace the growth in PBWA revenue, rising by 42% from $22.5 million to $31.9 million for the 9MFY2022 as bookings and financial occupancies across the group’s PBSA assets in the UK and Australia grew steeply in the 3QFY2022 and continued to benefit from the lifting of travel restrictions and a return of international students.

In addition, the group’s portfolio of eight PBWA assets in Malaysia recorded a financial occupancy of 75% for the 9MFY2022 amid a slower recovery, as employers experienced delays bringing in migrant workers. Centurion however continued to grow its PBWA segment’s revenue as the migrant workforce gradually returned to pre-Covid-19 levels, driven primarily by strong improvements in financial occupancy at Westlite Bukit Minyak, Penang and Westlite – PKNS Petaling Jaya, Selangor.

The average financial occupancy of the group’s ten PBSA assets in the UK rose from 68% for 9MFY2021 to 90% for the 9MFY2022. This comes with the group’s announcement in May of the proposed acquisition of a 103-bed freehold PBSA asset in Nottingham, UK. However, on Oct 28, the company announced that the proposed acquisition was terminated.

Meanwhile, in Australia, the average financial occupancy of the group’s two PBSA assets increased from 26% for the 9MFY2021 to 68% for the 9MFY2022.

“We are pleased that the group’s financial performance has continued to improve through the third quarter of 2022, as Singapore and the UK enjoyed high occupancies while Malaysia and Australia recovered closer to pre-Covid-19 levels of occupancy,” says Kong Chee Min, CEO of Centurion. “Rental rate reversions have been healthy, supported by strong demand across all markets, cushioning the effects of inflation and rising interest rates.”

On Oct 19, Centurion also announced the sale of its 55% stake in its South Korea Operating Company and Property Company, which owns the dwell Dongdaemun PBSA asset. The consideration for the disposal was KRW5.46 billion ($5.4 million) against the aggregated net tangible asset value of Centurion’s interests in the Korean entities at approximately KRW3.57 billion as at June 30.

The disposal is being carried out as part of an ongoing rationalisation of the Group’s asset portfolio to align and focus its asset portfolio on countries where the Group bears competitive advantage and is able to expand and scale up its operations.

Completion of the transaction is scheduled on Nov 30.

Additionally, in April, the group announced the commencement of the sale of its US PBSA portfolio, which is held under the Centurion US Student Housing Fund where the fund life is coming to the end of its initial five-year term, with an optional extension of two years. At present, Centurion holds 28.7% of the units in issue and is the manager of the fund and its assets.

Due to the current uncertain market conditions and interest rate environment, in the event that the sale does not close by the end of the fund term, Centurion intends to seek the fund investors’ agreement to extend the fund term by two years. Currently, the US portfolio enjoys high occupancy and healthy rental reversions for the academic year (AY) 2022/2023, and expects continued strong market demand for AY2023/2024.

Shares in Centurion closed at 1 cent up or 3.03% higher at 34 cents on Nov 1.

 

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dis 1 got good profits but never move in my portfolio... knn

 

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Centurion Corp: Dorm provider with heart​

https://www.theedgesingapore.com/ca...ries-10-10/centurion-corp-dorm-provider-heart
Centurion Corporation owns and operates specialised accommodation assets, including worker and student accommodations in 17 cities and six countries worldwide. The group is the largest Purpose-Built Workers Accommodation (PBWA) provider in Singapore and Malaysia, and it also manages Purpose-Built Student accommodation (PBSA) assets in major global education hubs including Australia, the United Kingdom (UK), the United States (US) and South Korea.

1. Describe Centurion’s recent financial performance.

In FY2022 ended December 2022, Centurion reported revenue growth of 26% year-on-year to $180.5 million, while net profit after tax (NPAT) attributable to equity holders increased 36% y-o-y to $71.4 million. Net profit from core business attributable to equity holders grew 23% y-o-y to $57.1 million. The group is heartened to see these results, especially in light of headwinds in 2022, where inflation, especially in energy costs, and interest rate hikes drove expenses higher.

With travel restrictions and pandemic management measures lifted, both migrant workers and students have started to return in large numbers across the countries where we operate. Our financial occupancies have in turn recovered to pre-Covid levels. Furthermore, with demand overtaking supply in both our PBWA and PBSA markets, we have been able to attract healthy rental rate reversions.

2. What makes Centurion’s business resilient and sustainable?

Both our worker and student accommodation business segments enjoy robust demand and short supply in the countries and cities we operate. Moreover, demand for migrant workforce and higher education tends to be counter-cyclical and resilient to economic swings. We have also strategically diversified our asset portfolio in both business segments across six different countries.

Operationally, we take care to manage concentration risks in any one property or market. For example, our PBWA customer base has more than 1,700 employers across different industry sectors, while no single customer is leasing more than 5% of our portfolio bed capacity. For our PBSA UK portfolio, domestic students account for about 65% of our residents, with international students occupying the remaining 35%.

3. What are some highlights and milestones achieved by Centurion in recent months?

In January, Centurion and our joint venture partner, Lian Beng Group, were awarded a tender by JTC in Singapore to develop and operate a 1,650-bed PBWA in Ubi Avenue 3, on a 30-year land lease. The land is situated in a region which faces a shortage of bed supply as it has few purpose-built dormitories and is mainly supported by factory-converted dormitories. The development is expected to be completed in 2025 and will be among the first purpose-built dormitories to be developed by the private sector under new specifications by Singapore’s Ministry of Manpower (MOM) in 4Q2021.

We have also been awarded a management contract by MOM, to manage five Community Recovery Facilities, commencing in February. This will begin to accrete to our management fee income and accommodation-related ancillary revenue from 1Q. We have secured a 10-year master lease to operate a new 2,196-bed asset, Westlite Cemerlang, in Johor, Malaysia. It is expected to be completed and commence operations in 3Q.

4. What is Centurion’s competitive advantage?

As a pioneer and leading provider in the worker accommodation industry, Centurion believes in continuous innovation to address evolving consumer needs and regulatory shifts, which keeps us ahead of the market. For instance, all apartment units in our Singapore PBWA have been equipped with en suite toilets, showers and kitchens since 2011. This was before the Covid-19 outbreak, which led local authorities to specify en suite toilets and showers for better pandemic management.

Besides structural design and build, Centurion’s philosophy of “Business with a Heart” is also core to our business. Our stakeholders value our dedication, experience and expertise in delivering care and concern for our multinational and multicultural resident communities. We believe that understanding residents’ needs and ensuring quality living conditions are significant factors. These include room inspections for hygiene and cleanliness, active event calendars for social inclusion and mental well-being, as well as addressing security and safety concerns.

In terms of portfolio growth and scalability, we have established management platforms and processes, agency and partner relationships, technology platforms and tools as well as talent development programmes. This enables us to quickly replicate operating capabilities into new markets and properties, with optimal rampup periods.

5. How does Centurion plan to create more value for shareholders?

Centurion regularly assesses our existing portfolio assets to calibrate our assets, spaces and operations while adjusting to market shifts and regulatory changes. This helps to enhance the value of our assets, improve pandemic management resilience and ensure the well-being of our residents. For example, in 4Q2022, we completed an Asset Enhancement Initiative (AEI) at Westlite Tampoi in Malaysia, adding 1,214 beds to our Malaysian portfolio. Earlier in 2022, to tap into a shift in student demand towards premium room formats, we converted several non-en suite cluster apartment units into ensuite single or studio apartments at the Manchester Student Village in the UK.

The group continues to look for opportunities to enlarge our portfolio and expand revenue streams. This may be by way of acquisition, or via asset-light means such as private funds, joint ventures, master leases or management contracts. We also consider, where sensible, opportunities for accommodation-related revenue streams, such as ancillary services delivered to migrant worker onboarding centres or our PBWA resident communities. Centurion has also announced an ongoing strategic review of our assets, exploring opportunities for capital recycling and capital reallocation towards synergistic or higher-yielding assets and markets.

6. PBWA makes up the majority of Centurion’s overall portfolio. Are there plans to grow the PBSA segment?

We intend to grow our PBSA portfolio sensibly and synergistically. We believe that there are ample opportunities in markets such as the US, the UK and Australia, as these are the top three destinations for higher education internationally. With the recovery of travel, growth in domestic and international student acceptance, as well as China government’s stated rejection of overseas online programmes, we expect our PBSA segment to continue being robust in the short to mid-term future.

 

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7. What is Centurion doing to raise occupancy and rental rates?

Centurion believes in providing high-quality products and services, which the group develops, maintains and innovates to ensure its attractiveness to our customers. For instance, we put care into the design and build of our properties (from the apartment units to the amenities we provide within each property) and ensure that our assets maintain the highest standards of hygiene and safety. We also have strong management capabilities and service standards, which represent the soft aspects of our offer. These include understanding the needs of our customers and residents. For example, our Resi-Life programmes aim to care for the physical, social and emotional well-being of our residents. By consistently addressing the needs of our customers and residents, with a commitment to their well-being, we build brand trust and reputation, which should result in greater customer preference, loyalty and referrals.

8. How are the headwinds impacting your business?

Inflationary pressures and rising interest rates have led to higher operating costs and financing expenses, however, this is expected to be moderated by positive rental rate reversions given positive demand and supply fundamentals, as well as high financial occupancy. The group aims to mitigate the impact of the dual headwinds, with a focus on management efficiencies, optimising rental revenues, and prudent cash conservation.

9. What are the most significant ESG risks or opportunities your company is facing?

How are you meeting these needs? It is important that we actively ensure that our migrant workers and student residents have a holistic living experience. We also focus on integration efforts among our migrant workforce and international students within the respective Westlite and dwell communities as well as with the local communities.

Calendar milestones such as Deepavali and International Migrant’s Day are some examples of moments in the year when we organise activities within and outside our dormitories. Beyond this, we have an active calendar of events throughout the year where our residents can partake in, including excursions and interactions with schools and non-profit organisations for cultural exchange.

In addition, we actively invite welfare organisations to engage with our student and worker residents. This can be in various forms, such as providing free physical health screening, mental wellness consultations and educational talks.

10. Why should investors take a closer look at Centurion?

We operate in a niche segment, solely focusing on the specialised accommodation business, including the highly pursued PBSA and high performance PBWA segments. Both Specialised Accommodation asset classes are established businesses with strong demand and supply fundamentals as well as proven ability to generate quality earnings and steady cash flow. The group’s strategically diversified portfolio, helmed by a seasoned prudent management team, has demonstrated stability and resilience through the Covid-19 pandemic and in the ensuing recovery period.

The group has also shown ability to expand its portfolio of assets under management and extend revenue streams, through asset-light means and management services. The group is trading well below its net asset value (NAV) per share and has an established track record for growing earnings per share and NAV y-o-y through challenging and volatile times.

Candace Li is a research analyst with the Singapore Exchange

 

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Centurion JV company to refurbish Hong Kong building for student housing​

https://www.theedgesingapore.com/ne...-refurbish-hong-kong-building-student-housing

Centurion Overseas Investments COI), a wholly-owned subsidiary of Centurion Corporation, has established a joint venture (JV) with LionRock Property to invest in a student accommodation property in Hong Kong.

On April 5, the JV company, Centurion-Lionrock (HK), entered into a master lease agreement with Smart Enterprises Limited to lease a building in Hong Kong for five years. COI holds a 60% stake in the JV company, while the remaining 40% is held by LionRock.

The building will be refurbished and developed into student accommodations with a total capacity of 66 beds. The five-year term agreement also has options to renew for three years and a further two years.

The property will be operated under Centurion’s “dwell” student living brand and management platform, subject to a licence agreement to be entered into between COI and the JV company.

The projected cost of the proposed refurbishment of the property and initial working capital is approximately HK$11.5 million ($2.0 million) and will be funded by a shareholder loan at an annual interest of 8% from COI.

The building is expected to be completed and operational in September.

The transactions are not expected to have any material impact on Centurion’s consolidated net tangible assets or earnings per share for the FY2024 ending Dec 31.

Shares in Centurion closed unchanged at 42.5 cents on April 9.

 

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Centurion expands in Malaysia with acquisition of Johor dorm operator for $33.7m​

https://www.straitstimes.com/busine...-acquisition-of-johor-dorm-operator-for-33-2m

SINGAPORE – Accommodation owner and operator Centurion Corporation has bought Johor-based workers’ dormitory provider Harum Megah Resources, making it the latest Singapore company to tap into the region’s investment fervour.

In a Sept 2 statement, Singapore Exchange-listed Centurion said the RM110.8 million (S$33.7 million) acquisition is part of a potential RM300 million to RM500 million investment in the Johor-Singapore Special Economic Zone (JS-SEZ), following a letter of intent it signed with a state investment authority in May.

“The acquisition marks a significant step in advancing this strategy, expanding Centurion’s footprint in Malaysia with strong operational assets that meet regulatory requirements and the housing needs of employers and migrant workers in Johor,” the statement said.

Harum Megah’s portfolio of six purpose-built worker accommodation properties across Johor will add nearly 7,200 beds to Centurion’s Malaysian portfolio, raising the total by 25 per cent to about 35,600 beds.

“Located in mature industrial estates, the six assets benefit from (a) strong migrant workforce catchment, supported by healthy occupancies and an established customer base, and will be immediately accretive to the group’s earnings,” Centurion said.

Centurion, whose portfolio includes the Westlite brand of dorms in Singapore and student properties in Australia and Britain, said it bought all the issued shares of Harum Megah through its wholly owned subsidiary in Malaysia.

All six assets are fully operational, licensed as centralised labour quarters, and developed and operated in compliance with Malaysian laws on housing standards for workers, it added.

Centurion chief executive Kong Chee Min said: “The properties will accrete to the group’s revenue immediately and position us well to meet the growing demand for quality, compliant accommodation.”

He added: “Looking ahead, we remain optimistic about Malaysia’s long-term growth potential and committed to deepening our presence in support of the JS-SEZ and beyond.”

Centurion’s deal comes just over a week after healthcare services provider Thomson Medical Group unveiled plans for a major new development with a hospital, aged care and other facilities worth more than RM18 billion.

The business and investment zone, spanning the Iskandar Development Region and Pengerang, is projected to generate 20,000 skilled jobs for residents on both sides of the Causeway.

Centurion’s expansion in Malaysia follows plans to sponsor the listing of a real estate investment trust (Reit) on the SGX mainboard in September.

Centurion Accommodation Reit will initially comprise 14 purpose-built student and workers’ accommodation assets in Singapore, Britain and Australia worth $1.8 billion.

Another student accommodation property will be added to the portfolio when its acquisition is completed, taking the portfolio’s value to about $2.1 billion.

An extraordinary general meeting to vote on the listing of the Reit will be held on Sept 10.

Mr Kong told reporters in August that the Reit would not feature Malaysian properties, given emerging market risk, but the listco will continue expanding its portfolio in the country.

Shares of Centurion closed at $1.76, up 1.7 per cent, on Sept 3.