SPECIALISED accommodation assets player Centurion Corporation : OU8 0% on Thursday (Aug 10) announced earnings of S$38.3 million for the first half of its 2023 financial year, up 16 per cent from S$32.9 million in the year-ago period. 

Earnings from its core business operations – excluding fair-value adjustments – stood at S$36 million in the latest half-year ended Jun 30, representing an 11 per cent increase from S$32.4 million a year ago. 

Centurion’s H1 2023 revenue rose 8 per cent year on year to S$97.9 million from S$90.5 million. The group attributed this to stronger demand for workers’ accommodation and student accommodation across Singapore, Malaysia and Australia.

The group noted, for instance, that financial occupancy for its purpose-built workers’ accommodation (PBWA) portfolio grew to 96 per cent in H1 2023, from 86 per cent in the same period in 2022. Financial occupancy for its PBWA in Singapore – which comprises five purpose-built dormitories and four quick-build dormitories – also recovered to pre-pandemic levels at 98 per cent, supported by positive rental rate revisions.

Revenue in the city-state consequently rose 4.6 per cent to S$63.8 million, from S$61 million in H1 2022. 

Overall, revenue from Centurion’s workers’ accommodation portfolio grew 9.5 per cent to S$73.3 million for the latest half-year, from S$67 million in H1 2022. This came in tandem with the easing of border restrictions post-pandemic, the group said. 

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Meanwhile, revenue from the group’s student accommodation portfolio increased by 7.7 per cent to S$24.3 million, from S$22.5 million in the year-ago period. It said this was largely due to a “strong occupancy rebound” in its Australian purpose-built student accommodation assets; this was in turn driven by the return of international students. 

Centurion said it expects this growth will continue, with “notable growth” in Chinese student numbers following Beijing’s move to end the recognition of online degrees. 

Earnings per share stood at S$0.0456 for H1 2023, up 17 per cent from S$0.0391 in the same period a year ago. 

The group’s board declared an interim dividend of S$0.01 per ordinary share, which it said will be paid on Sep 29, 2023.

“We are mindful of the economic uncertainties arising from headwinds such as high, rising interest rates and inflation, but remain confident that Centurion’s portfolio of assets will continue to do well,” said the group’s chief executive officer Kong Chee Min.

“Our interim results reflect the resilience of our core business, and the group will continue to strategically review our assets, enhance our portfolio and expand revenue streams to deliver sustainable value to our stakeholders.” 

Shares of Centurion closed flat at S$0.45 on Thursday, before the announcement.