Centurion Corporation (OU8) H1 2024 earnings summary

Executive summary

• 1H 2024 revenue rose 27% YoY to S$124.413m; core-business profit increased 48% to S$53.371m, while equity-holder NPAT climbed 209% to S$118.208m, boosted by fair value gains.

• High occupancy and rental revisions across accommodation portfolios supported operating growth; an interim dividend of 1.5 cents per share was declared, up from 1.0 cent.

Financial highlights

• Revenue rose 27% to S$124.413m; gross profit increased 34% to S$94.147m and gross margin improved 4 percentage points to 75.7%.

• Net profit was S$127.692m versus S$42.393m; equity-holder NPAT was S$118.208m versus S$38.301m, up 201% and 209%, respectively.

• Core-business profit attributable to equity holders grew 47% to S$48.488m; core-business EPS was 5.77 cents versus 3.93 cents, while reported EPS was 14.06 cents versus 4.56 cents.

• Operating cash flow was S$52.8m; investing activities generated S$6.3m and financing activities used S$43.7m in 1H 2024.

• Higher revenue and fair value gains drove profit growth; higher tax expense and administrative costs partly offset the gains.

Outlook and guidance

• FY 2024 net portfolio capacity is expected to grow by 2,393 beds, or 4% YoY.

• Singapore projects include ~1,650 beds at Westlite Ubi expected in Dec 2024 and ~5,460 beds from Toh Guan and Mandai redevelopments expected by 2026.

• Malaysia additions include ~920 beds at Westlite Senai II in 4Q 2024 and ~2,690 beds from 2025 enhancements; a ~7,000-bed Nusajaya project is under evaluation.

• Hong Kong operations are expected to commence at two PBSA properties with 155 beds combined in Sep 2024 and at the 550-bed Westlite Sheung Shui in Nov 2024.

• Australia plans include a ~600-bed Melbourne PBSA redevelopment, subject to final Development Approval, and evaluation of a nearby ~575-bed site.