Centurion posts 3Q21 revenue grew 20 percent on worker dorm demand

Singapore two-dollar bills
  • Singapore revenue rose on new worker accommodation properties
  • U.K. student accommodation showed a recovery
  • Australia student housing revenue fell on continued border controls

Centurion reported Friday its third quarter revenue grew 20 percent on-year to S$35.27 million as new worker accommodation properties came on-line in Singapore and as student accommodation revenue in the U.K. recovered.

Workers’ accommodation revenue increased 24 percent on-year to S$28.35 million, the company said in a filing to SGX.

Student accommodation revenue grew 10 percent on-year to S$6.77 million, the company said.

In Singapore, revenue rose 19 percent on-year to S$25.10 million as new properties began operations, and on continued income from accommodation-related or ancillary services, Centurion said.

“The purpose-built workers accommodation (PBWA) segment’s revenue was boosted by contributions from three quick build dormitories (QBDs), which commenced operations between 4Q 2020 and 2Q 2021 and have achieved healthy occupancies,” Centurion said in the statement.

“A calibrated resumption of migrant workers from South Asia entering Singapore, as well as an increase in hiring of workers from other source countries, had led to an increase in demand for approved accommodation such as QBDs and Purpose-Built Dormitories in Singapore,” the company said..

Revenue from the U.K. jumped 55 percent on-year to S$5.08 million on a strong recovery in purpose-built student accommodation (PBSA) occupancies, the filing said.

“Most of the Covid-19 restrictions on international travel and on-campus programmes had been lifted during the period. For the upcoming academic year 2021/2022, the group has currently pre-leased 86 percent of its bed capacity. As travel restrictions eased, the number of international students pursuing higher education in the U.K. is expected to remain strong,” Centurion said.

Malaysia revenue grew 27 percent on-year to S$3.40 million as the PBWA segment added new capacity, with another block at Westlite Pasir Gudang set to be operational in the fourth quarter of this year, Centurion said.

However, revenue from Australia declined 35 percent on-year to S$1.13 million as continued strict border controls hurt occupancy, the filing said.

“International student demand for education in Australia is expected to improve as Australia looks to diversify international student pools and further ease border controls,” Centurion said. “The Australian government has also announced that with further easing over the coming weeks as more Australians become fully vaccinated, it anticipates allowing fully vaccinated skilled workers and international students to return before the end of 2021.”

Read Centurion’s filing to SGX for more details about its portfolio.