Centurion warns 1H21 net profit likely tumbled around 58 percent on pandemic hit

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Centurion Corp. warned Friday its first half net profit likely tumbled around 58 percent on-year from the S$21 million reported in the year-ago period due to the impact of the Covid-19 pandemic on its accommodation assets.

Around S$15.4 million in net fair value losses will likely be recognized on the company’s investment properties, mainly on the drop in occupancy in the accommodation assets, Centurion said in a filing to SGX, noting there were no year-earlier net fair value losses.

“The prolonged Covid-19 pandemic has negatively affected the occupancy rates across almost all the group’s entire asset portfolio. Revenue of the group for the six months ended 30 June 2021 has decreased particularly from the group’s student accommodation portfolio
in Australia and the United Kingdom and the group’s workers accommodation portfolio in Singapore,” Centurion said.

The hit to revenue was mitigated by new revenue streams from the extended portfolio and operations in the workers accommodation business, the company added.

Excluding the fair value losses, net profit from the core business has remained stable on the new revenue sources, lower interest costs and cost-management measures, Centurion said.

Centurion said its results are due 10 August.