Centurion Corporation (OU8) Q3 2024 TU earnings summary

Executive summary

• 9M 2024 revenue rose 25% YoY to S$186.5m, supported by rental revisions and strong occupancy across workers’ and student accommodation.

• Portfolio comprised 66,660 operational beds across 34 properties in 15 cities and six countries, with AUM of S$2.1b as at 30 Sep 2024.

Financial highlights

• 3Q 2024 revenue increased 22% YoY to S$62.1m; 9M revenue rose 25% to S$186.5m from S$149.0m.

• 9M segment revenue was S$143.8m for PBWA, up 27%, and S$42.1m for PBSA, up 20%.

• 9M revenue mix was 77% PBWA and 23% PBSA; Singapore contributed 67%, UK 15%, Malaysia 10% and Australia 7%.

• Growth reflected positive rental revisions and strong occupancy; weaker MYR partly offset growth in reported Singapore-dollar revenue.

Outlook and guidance

• Net bed capacity growth in FY 2024 is expected to be 2,163 beds, compared with 1,086 beds added in FY 2023.

• Westlite Ubi’s ~1,650 beds are expected by Dec 2024; Westlite Toh Guan adds ~1,764 beds by Dec 2025 and Westlite Mandai ~3,696 beds by 2026.

• Malaysia AEIs target ~680 additional beds at Westlite Senai II by end-2024 and ~870 at Westlite Johor Tech Park by Q4 2025; a ~7,000-bed Nusajaya development is under exploration.

• Australia pipeline includes ~600 PBSA beds at dwell Village Melbourne City by Jan 2026, a proposed ~575-bed Melbourne site and ~732 beds at Macquarie Park by Dec 2025.

• Two Xiamen BTR projects are planned under 20-year master leases: ~1,000 apartments at Gaolin and 500 at Lingxia.